[Infographic] Direct Deposit: Good for Businesses and their Employees

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Information about [Infographic] Direct Deposit: Good for Businesses and their Employees

Published on July 7, 2016

Author: Paychex

Source: slideshare.net

1. Direct Deposit: Good for Businesses and their Employees 82% of employees are paid by direct deposit AVERAGE PER-CHECK SAVINGS $2.87 - $3.15 AVERAGE PER-CHECK SAVINGS USING ELECTRONIC PAY STATEMENT $1.20 By paying employees with weekly paycards, business- es can save significant costs: Average yearly savings for businesses with 10 employees $2,100 Average yearly savings for businesses with 100 employees $21,000 May is Direct Deposit Month Reduced costs involved with re-issuing checks that are lost or stolen Employee pay is direct deposited onto a paycard (or payroll card), easing the process for employers of reconciling their payroll bank account. By reducing the printing and delivery of paper checks, employers save time and money, while lessening concerns for lost or stolen payroll checks. With this process, direct deposit is available for all - particularly helpful for those employees who don't have a bank account. Employees can make purchases and pay bills using a pay card, without the need to pay fees at a check-cashing store. Many paycard programs offer employers an online portal that allows them to manage all aspects of their program. Direct deposit offers employers a safe, convenient way to electronically pay their employees. Payroll funds are deposited into accounts, so employees can access their wages immediately on payday. Sources: https://www.nacha.org/news/new-nacha-survey-shows-adoption-and-awareness-direct-deposit-ach-continues-build NACHA, The Electronic Payments Association (annual savings for one weekly employee is $211 ($2.87 + $1.20 for 52 weeks) http://www.paychex.com/articles/payroll-taxes/benefits-of-direct-deposit-to-employees-and-employers M. Fellowes, M. Mabanta. “Banking on Wealth: America’s New Retail Banking Infrastructure and Its Wealth-Building Potential.” Brookings Institution. 2008. http://www.brookings.edu/~/media/research/files/reports/2008/1/banking%20fellowes/01_ banking_fellowes.pdf “2010 Report On Check Casher And Basic Banking Fees.” Massachusetts Division of Banks. 2010. http://www.mass.gov/ocabr/docs/dob/- checkcashreport2010.pdf “2010 Report On Check Casher And Basic Banking Fees.” Massachusetts Division of Banks. 2010. http://www.mass.gov/ocabr/docs/dob/- checkcashreport2010.pdf M. Flores, “Analysis of Network Branded Pay Cards: Comparative Analysis of Pay Cards to other Payment Options.” Bretton Woods, Inc. 2011. http://bretton-woods.com/media/51f57d9869e66aa1ffff8159ffffd502.pdf Paycard Benefits Other Benefits Payroll Checks vs. Payroll Cards No stop-payment charges levied by a bank when a check goes missing Savings in absenteeism (when employees must take extended breaks to deposit or cash their checks) Significantly less risk of identity theft due to lost or stolen checks Eliminating costs of printing and distributing paystubs What Americans without bank accounts pay at check cashing outlets, payday lenders and bill pay centers $8 billion Typical amount in fees incurred by employees who use paycards $0 Average cost of basic checking account $273 The new generation of paycard programs is gaining popularity among employers and their employees. Before deciding on a paycard program for your business, do your research to make sure you select a program that best meets the needs of your business and your employees. Learn more about paycards and how they can meet the needs of your business and your employees at payx.me/deposit.

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