You’ve automated your systems, updated your product, and calculated your profit … But you don’t offer Direct Deposit? Businesses both large and small face the toughest market in history. If a business is to survive, it must be competitive. This means a more creative and efficient approach. It means making the most of valuable resources–your employees and your profits. Direct Deposit can help you maximize both. Direct Deposit is a unique employee benefit that offers convenience, reliability and security while saving you money.
How Can Direct Deposit Maximize My Profits?
Simple. Direct Deposit is a more efficient and cost effective method of distributing your payroll. Estimates show that businesses utilizing Direct Deposit can cut their payroll production and distribution costs by as much as 50 percent depending on the level of participation. These estimates do not even account for the productivity savings by keeping employees in the office and limiting unnecessary trips to their financial institutions.
How Does Direct Deposit Work? Why Is It So Much More Cost Effective?
Direct Deposit allows you to deposit your employees’ pay automatically into their accounts via the Automated Clearing House (ACH) network. Employees complete a form authorizing you to make payroll deposits into their checking or savings accounts. At the end of the pay period, the necessary payroll information is transferred electronically (by phone, computer or magnetic tape) to your financial institution which pulls the records for its accounts and forwards the remainder of the transactions to the ACH network. The ACH sorts the records and distributes them to the appropriate financial institutions. Your employees’ accounts are credited with their payroll amounts on payday. Because this process is completed electronically, it is less expensive than traditional payroll processing.
How Reliable Is Direct Deposit?
Direct Deposit is more reliable than traditional payroll methods. Paychecks issued to employees can be lost or stolen creating stop payment and account reconcilement problems for you. With Direct Deposit, these problems are eliminated.
Will I Lose Float?
You may, but the money saved by streamlining your administrative process, eliminating the burden of tracing lost and stolen checks and keeping your employees in the office will compensate for any loss of float.
Will My Employees Want Direct Deposit?
Absolutely. A large percentage of businesses already offer this benefit to their employees. Studies have shown that Direct Deposit is widely accepted by employees. In fact, some employers report participation rates as high as 80 percent.
How Much Of An Investment Is Necessary To Convert Our Current System To Direct Deposit?
Conversion expenses have to be estimated on a case by case basis. We can work with your payroll department to determine the cost. Again, conversion costs will be quickly compensated for by the money you will save.
How Can I Find Out More About Direct Deposit?
Simply call us at:
Rawlins Main Branch (800) 788-9479 or (307) 324-1100
Rawlins East Branch (307) 324-1180
Saratoga Branch (866) 423-2121 or (307) 326-8314
Hanna Branch (307) 325-9007