Final rule on paycards expected early in 2016
Look for a final rule on paycards during the spring of 2016, the Consumer Financial Protection Board (CFPB) said recently.
The rule would place stricter requirements on employers that want to pay wages using paycards, and on prepaid accounts in general.
The CFPB published a proposed rule in the Federal Register in December 2014.
Then came the comments: almost 4,000 of them.
The goal of the proposed rule is to increase consumer protections. It’d amend the regs for the Electronic Funds Transfer Act and the Truth in Lending Act.
Popularity increasing
If an employee doesn’t have a checking account, and can’t sign up for direct deposit, paycards can be a win-win – and popularity is on the rise.
In 2014, there were 6.0 million payroll card holders and 7.8 million employees receiving paper checks. The 2015 estimates are 7.4 million and 6.7 million respectively, according to a survey by the Aite Group.
- Share on
Free Training & Resources
White Papers
Provided by UJET
White Papers
Provided by Anaplan
Further Reading
IRS released regs at the end of November, leaving retirement plan sponsors with just over a month to get their 401(k) plans up to speed. ...
Confirming when federal legal and banking holidays will occur in 2024 can help you avoid surprises on paydays, tax deposit due dates and re...
The higher overtime salary threshold that kicks in on July 1 will affect a million-plus salaried exempt employees. And it’s good news...
Before we get too far into the new year, double-check that all changes to state income tax rates and laws have been caught. Better for P...
The IRS has revised Form W-4 for 2026, making the newly revised form available to employers during mid-December 2025. The updated form i...
It’s not too late to get tax relief in the form of the Employee Retention Credit that was created as part of the CARES Act in 2020, t...
