What Payroll Providers Need to Know
Keeping up with NACHA changes to payroll processing capabilities isn’t always easy, even when they bring welcome enhancements. Payroll providers are subject to rules and regulations that fill a booklet larger than some dictionaries.
Among those rules are recently enacted changes that provide for same-day processing of payroll credits and debits. This enables providers to move money faster and ensures that employers can get funds into employee accounts sooner. That’s the good news. There are also new deadlines to navigate, higher charges, new registration requirements, and some limitations.
Latest NACHA Rules Detailed
At Cachet Financial Services, we process approximately $105 billion in ACH direct deposit payroll transactions annually for more than 90,000 employers. We’re committed to making compliance with NACHA regulations and audits headache-free. Our whitepaper, Recent NACHA ACH Payroll Processing Changes: What Payroll Providers Need to Know, breaks down what these new rules and regulations will mean to you.
Taking advantage of same-day payroll processing capability means hitting one of two processing windows for settlement time – taking into account both the Federal Reserve deadlines and a buffer for processing time by the ACH processor. This can present some challenges depending on your time zone. You’ll also need to be aware of a gap between the speed of same-day debits and the speed of the notifications that funds are available.
New registration requirements will add an additional burden for some payroll providers. Cachet customers will catch a break here; since California made this a requirement in 2013, we've already collected this data for our payroll service bureau and remarketer clients.