| We now must apply the principle of pay the wage the day it is earned. This is a very doable policy change for most organizations. The reluctance may be in that it is no longer the norm to do so. There is also the weight of complex payroll systems that have combine too many other services with simple wage payments. |
| Paying of wages should be wages only |
| Payroll remains a burdensome process when the complexities of taxes, benefits and deductions are part of the process. Removing these features does return the burden to the earner, however there can be significant benefit to that, especially when considering taxes. |
| When the wage earner has to perform an act to pay the taxes, the impact of taxes is placed more on the forefront of the mind. The weight of taxation becomes real which may impact one’s political persuasion. There are legal requirements that limit an employer’s ability to do this, but this withholding does not prohibit paying daily. Arguments about tax withholding are beyond our scope. |
| Most benefits and other deductions are not required by law. There is a perceived advantage to the earner. However the earner now has an additional dependence on the employer which gives the employer more control of the lives of the earner and their family. |
| A compromise could be that funds are set aside in the daily paycheck by the employer and then credited to the appropriate tax or service as required. This allows for the employee to receive their funds daily and see an accumulation towards payments towards taxes or benefits. |
| Costs of the Paycheck |
| If a paycheck is written or printed, there is a real cost to the paycheck. If the paycheck is via electronic means, there is still a fee to financial institutions that is typically lower but as real as a physical paycheck. Clearly one check a week is cheaper than five, but that does not remove the requirement of a daily payday. |
| Electronic payroll is clearly a significant time and cost advantage to both the employer and employee. Ending the work day with an electronic transfer to the earner’s account seems to be in compliance to the Lord’s command as the earner has the funds in their possession. |
| Where a particular financial institution does not make the funds immediately available to the earner is not the responsibility of the employer. The earner must choose a financial institution that meets their needs. |
