What does it mean to pay wages on behalf of others?

It means that the employer entrusts the payment of wages to the bank. The employer will transfer the total salary to the bank, and the bank will pay the salary to the employee's account.

Payroll business refers to the business that a commercial bank accepts the entrustment of the entrusting unit and transfers the wages, bonuses and other income paid by the entrusting unit to the current savings account opened by the designated employees in the bank by means of transfer. From the form of payment, the payroll service includes three forms: current passbook, savings card and credit card.

The significance of paying wages on behalf of others:

1 is conducive to expanding the sources of bank funds, enhancing the financial strength and supporting urban and rural economic development.

2. It is conducive to reducing the circulation of funds and minimizing the funds held by employees.

3. It helps to improve work efficiency. After the wages are transferred to the existing savings, banks and enterprises, enterprises and individuals are freed, and individuals and savings institutions repeat their work, saving manpower and material resources and improving work efficiency.

4. It is beneficial to change the traditional consumption concept of workers, cultivate the habit of using and planning thrift, and strengthen the construction of socialist spiritual civilization.

5. It is conducive to accelerating the process of socialization of banking services. At the same time, it is also conducive to promoting the electronic process of banks.

6. It is conducive to reducing the capital cost of bank organizations and improving the economic benefits of banks themselves.

Reference source Baidu Encyclopedia pays wages.