Solutions to the Advancing Vacation Pay Quandary

June 01, 2017

You can use direct deposit or payroll cards to avoid advancing vacation pay.

Spring is here and that means your employees are starting to plan summer vacations. That also means you may be trying to figure out how to make sure your employees continue to be paid for their vacation time without advancing pay.

PaySmart offers you two very smart solutions: Direct deposit or payroll cards.

Direct Deposit: Moving your entire staff to direct deposit can simplify your payroll process and help avoid the issue of advancing vacation pay, since payroll is automatically deposited into an employee’s bank account. Consider some of the benefits:

  • Save time. No more handing out paper checks, and because payroll funds are deducted in a single transaction, you’ll spend less time reconciling your bank account.
  • Increase security. No more worry about lost or stolen paper checks. Avoid the cost of reissuing or stopping payment on lost or stolen checks.
  • Improve privacy. With electronic paystubs, private employee information stays private.

Payroll Cards: Not sure direct deposit is the right move for you? Have unbanked employees? Pay cards (payroll debit cards) may be the solution.

PaySmart offers free payroll debit cards that are immune to pay disruption caused by things like disasters … or vacations! Employees can use the cards to make purchases, get cash (fees may apply), and pay bills.

Ready to avoid the issue of advancing vacation pay by pursuing one of these very smart options? Contact your payroll specialist today to get started.