There’s a way, says Leslie Masonson, speaker at the recent American Management Association’s Corporate Cash Management seminar.

It’s on your company to pay the bank fees associated with card issuance and maintenance. And you’ll want to compare rates among banks.

But to ensure your organization isn’t paying too much no matter where your paycards come from, consider this policy:

Allow employees to make one free debit per pay period. Then, if they want to make additional debits, the fees are on them.

That way no one’s being penalized for using the cards (banked employees don’t get charged for direct deposit after all.) And your company isn’t shouldering too much of the financial burden to get away from paper paychecks.

When it comes to HR software, the most well-known offerings are often impractical for all but the largest companies. What’s out there for small businesses?

Fortunately for smaller businesses, a lot of systems are scalable and priced based on the number of employees in the company.

The first choice a company has to make: an in-house system, or a Web-based, on-demand program?

In-house systems are purchased and then installed and maintained by the company’s IT staff.

For Web-based software, companies pay a monthly fee to access the system online. The benefits: There’s no big up-front cost for the software and necessary hardware, and it’s easier to upgrade as the company grows.

However, some businesses are more comfortable with the security and control that comes with installing software in-house.

As for specific products, employers have a lot of choices — with more options for small companies appearing all the time. Here’s a list of the top five HR tech products for small business, according to CNN‘s “Ultimate Small Business Research Guide”:

1. SimpleHR — One of the least expensive HR products available, SimpleHR lets companies store basic information about employees’ salary, benefits, performance reviews, vacation use, safety incidents, etc. Different versions are available (with different prices), depending on how many employees the company has.
   For more information, read our Simple HR Review.
2. People-Trak HR — Priced at a one-time fee of $20 per employee, People-Trak is one of the more flexible offerings. Other versions are available that add features for additional costs.
   For more information, read our People-Track HR Review.
3. OrangeHRM — This open-source software is free — but employers can buy a professional support package if they lack the IT staff to comfortably do it themselves. A Web-based option is also available for a monthly fee.
   For more information, read our OrangeHRM Review.
4. EmpXTrack Starter Edition — EmpXTrack combines payroll software with an employee database, featuring a self-service option that lets employees keep their own information up-to-date. Pricier editions add tools for performance evaluations, surveys and recruiting.
   For more information, read our EmpXTrack Starter Edition Review.
5. Microsoft Dynamics NAV and GP — For some smaller companies, these offerings from Microsoft could be overkill, but they might be worth the investment for employers with robust growth who already rely heavily on Microsoft products.
   For more information, read our Microsoft Dynamics NAV and GP Review.

How much do companies save by switching to direct deposit? On average, $176.55 per employee per year, according to a recent study by the PayItGreen Alliance.

Besides the financial savings, the study also draws attention to the environmental benefits. When a company with 300 employees switches to direct deposit, every year, that employer:

• Saves 121 pounds of paper
• Avoids the release of 1,159 gallons of waste water, and
• Eliminates the release of 346 pounds of greenhouse gasses.

There’s also good news for employers that have tried to make the switch in the past but met with employee resistance. In 1998, only 35% of employees said they would use direct deposit if it was an option; last year, that number climbed to 76%.

Due to a payroll processing error, a bus monitor in Nashville, TN, quit her job yet still received a paycheck for an additional eight weeks.

When asked how it could happen, a spokeswoman for the school district simply said, “It didn’t get communicated to the person in payroll.”

Eventually, someone noticed the error, MSNBC reports. No word on how much money was paid, or if the district will try to recover it.

The worst part: School officials say the district may need to cut up to $15 million from next year’s budget. So, like at most employers these days, every penny counts.

This news comes less than a week after it was a reported a bus driver in the district was caught stealing more than $9,000 worth of gas for her personal car.

Microsoft recently made headlines after it laid off 1,400 workers. And then the news got even worse.

The software giant discovered that an “inadvertent administrative error” resulted in some former staffers being paid more severance than the company planned.

So what did the company do? It sent a letter to all those affected and asked them to pay the money back.

The costs of the error weren’t exactly insignificant — Microsoft’s HR chief Lisa Brummel estimated 25 former employees each received an average of $4,000 – $5,000 in extra cash.

But several critics jumped on the company for being insensitive and making a big PR mistake. And the company listened — last week, Brummel apologized and announced the former employees would now get to keep the oversize checks.

What do you think about this story? Should Microsoft be repaid the money? Or would it have been best to let it go and not draw any attention to the mistake?

Let us know your opinion in the comments section below.

A new regulation was recently enacted requiring companies with federal contracts to verify employees using the federal government’s E-Verify system. However, the rule was delayed from taking effect when a coalition of business groups sued, claiming the reg was illegal.

It was set to take effect on Feb. 20, depending on the outcome of the court case.

But an order from the new presidential administration has pushed the effective date back further to May 21, allowing the White House to review the pending regulation.

Of course, that effective date still depends on the outcome of the pending court case.

At least 50 employees at satellite radio provider Sirius XM recently found out they’re being laid off — before the company told them.

How did it happen? An employee logged on to the company’s payroll system and saw a scheduled termination date next to his name.

Word got around, of course, and more employees checked on their status before the company blocked access to the system.

The list of employees who got advance notice of their fate included several popular on-air personalities.

Basically, the technology replaces the old punch clocks (and even older paper time sheets). Instead of inserting a card, employees press a finger or palm to a scanner when they come to work or leave for the day. The system keeps track of the time for payroll.

The point is to streamline the timekeeping process, and to keep employees honest (since there are no time sheets to falsify and no way of having a co-worker punch in for you if you’re late).

Apparently, some big companies like Dunkin Donuts and Hilton hotels are already on board.

But will it catch on? Who knows. First of all, it probably doesn’t need to be mentioned that these systems are expensive. It might be worth it if you’re keeping track of a lot of employees who commit a lot of timekeeping fraud, but at most places, things may not be that complex.

Also, there’s already been a backlash from employees at companies where these systems have been implemented. Installing such an extreme fraud-proof system certainly sends a message of mistrust, and firms may find that the negative psychological effects outweigh other benefits.

What do you think? Does your company use biometric devices, or are you thinking about using them? Give your opinion in the comment box below.

A new study should give companies some help making their case.

Switching from manual to electronic T&A (via, computer- or Web-based software, timeclocks, etc.) gives companies a significant benefit, according to a survey from Nucleus Research.

In the companies interviewed after making the switch, the biggest benefits were:

1. Productivity boost

Automation makes the process easier for everyone involved — employees don’t have to spend time filling out timesheets, managers can approve attendance information more quickly and payroll no longer has to manually collect, check and transmit the data from paper records.

The bottom line: Everyone has more time to work.

2. Fewer errors

On average, the companies surveyed saw payroll errors decline by 1.2%. Going electronic significantly reduces the possibility of human error.

3. Better control of overtime costs

When employees submit their hours at the end of every pay period, managers often don’t know much time everyone’s worked so far in the current week.

With electronic tracking, managers can keep tabs on who’s in danger of incurring overtime and assign extra work for the week to those least likely to exceed 40 hours.

4. Elimination of paper costs

The final benefit is simple: You don’t have to spend money on paper.

Companies with a manual process spend an estimated three cents for every time sheet. Multiply that by the number of employees and pay periods, and you’ll have an idea of how much you can save.

To download a PDF of the report, click here.

One method many organizations are turning to: technology known as Interactive Voice Response (IVR).

IVR has many uses, one of which is allowing employees to use their phones to track hours worked, instead of a traditional time sheet or clock.

Basically, instead of punching in and out on the clock, the employee dials a number and tells the system to clock him or her in.

Who uses IVR?

IVR time clocks benefit many companies, especially those that:

• have employees who travel a lot (most systems let employees use a cell phone to access the system)
• have several locations (all data can be centralized without having to send paper records to one location), or
• use workers on a contract basis (those workers can clock in and out when they arrive at or leave a client’s location).