As a payroll professional, you are on the front line of your company’s ancillary services offering and play a key role in helping your organization and payroll clients understand the benefits of implementing ancillary services such as direct deposit. Below are five reasons to keep direct deposit in mind as one of your main ancillary service offerings.
Five Reasons to Offer Direct Deposit
1. Improved Payroll Performance
You are offering a valuable benefit and the entire payroll operation can be improved. Direct Deposit eliminates stop payments and adjustments of payroll and bank records. For companies servicing a large geographic area direct deposit ensures timely payroll delivery. Direct deposit helps to streamline operations, your clients and their employees do not have to worry about lost or stolen paychecks.
2. Business Continuity / Disaster Recovery
We have seen on the news all the recent disasters across the United States and the world. A direct deposit program can ensure payment to your clients and their employees on time. Direct Deposit provides the employee access to their funds on time from anywhere.
3. Cost Savings for the Company
A direct deposit system can also be a cost saver for most companies. This amount will vary between companies and can be hard to measure. This will take initial research and modification could be required. Be sure to include all costs of planning, design and implementation.
4. Float Loss
While some companies have been reluctant to move to direct deposit due to concerns related to lost float on payroll funds, those that have blazed the trail have experienced quite the opposite. Employers can save up to $1.25 per paycheck, offsetting any lost “float”, according to NACHA studies. The U.S. government reports that it saves 41 cents with every direct deposit.
5. Increased Service to Employees
The payroll office serves as a liaison between employees and employers. This occasionally requires you, as a payroll professional, to oversee the interests of both parties. Therefore, in providing an additional benefit to the employee, as well as reducing operating costs, the payroll office has met its obligation. As the payroll professional in your company, you can promote direct deposit as an employee benefit. Employees no longer will need to use personal time to make a trip to the bank. In addition, funds are available on payday. Even when your employees are sick or on vacation, they can be secure in the knowledge that their money is deposited safely into their accounts. An employee is not always limited to just one bank account either, depending on the employer’s payroll system, employees may be able to deposit funds into several accounts, including both savings and checking vehicles.