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
Webinars
Provided by Insightsoftware
White Papers
Provided by UJET
Webinars
Provided by SkyStem
Further Reading
What’s contained in the federal budget proposal for FY 2024? For one thing, certain businesses would pay a higher income tax rate und...
With TY 2023 forms out the door, you may be thinking about next year-end and what changes you can expect on Form W-2. IRS posted the fin...
A missed federal payroll tax deposit can trigger hefty penalties — they just went up on July 1. But a new IRS program could provid...
A new Connecticut law is about to add a documentation duty to your payroll to-do list. Effective Oct. 1, 2026, Public Act 26-12 will re...
High inflation continues to impact businesses. One of the latest examples? Costlier penalties for breaking workplace laws. Several federal ...
A federal court has approved a proposed $162 million class action settlement between Public Partnerships LLC (PPL) and personal assistants ...
