Direct Deposit is the Modern Payroll Solution for Employers and Employees
Employers that offer a range of payroll options to their employee base are far more likely to keep their workforce happy in the long run. Finding new ways to ensure that payroll processing systems meet the needs of both employer and employee is often achieved by working with an experienced payroll consultant.
One of the most requested services is that of “direct deposit” for employee paychecks. This type of payroll processing is possible for weekly, bi-weekly, monthly or quarterly paychecks. Checks issued to employees as reimbursement for expenses or sales commissions can additionally be direct deposited to their personal bank accounts.
Workforce members need only grant permission in writing to their corporate payroll departments. This is usually assisted by the company accounting or human resources department. New employees can give permission to have their checks directed deposited upon receipt of their first paycheck. Employees now picking up their checks on-site or receiving them in the mail can easily change their payment delivery method as needed.
All the payroll processing department needs from employees is the routing number of their bank and the account number of their checking or savings account. Banks and credit unions welcome direct deposit checks from employers. Along with government payments, corporate payroll checks are immediately credited to the accounts of their members.
Most importantly, paychecks that are direct deposited present major advantages for both employers and their employees. Payroll checks that are deposited directly into the accounts of employees are less likely to be lost or misplaced. Money digitally transferred to a financial institution does not have the potential to be lost in the mail. Likewise, this check will be received and can’t be cashed by the wrong party.
In the past, lost paychecks cost both parties time, money and a major dose of aggravation. Checks had to be tracked and then withdrawn. Stop payment fees were usually paid to the bank by the company payment agent. Employees that had already scheduled urgent bills like rent, mortgage and utility bills against their paychecks might bounce a check. They therefore were faced with bank fees of their own.
From a standpoint of convenience, employees generally endorse wholeheartedly endorse direct deposit options. It means that they do not need to spend their lunch hour rushing to their local bank branch to deposit their check. This also ensures to their employers that they will not lose members of their workforce each week running out to perform these necessary errands.
With the expertise of a professional payroll company, directly deposited checks flow “like clockwork.” Companies do not have to devote a large portion of their time requiring their own accounting departments to deal with weekly payroll issues. Should changes be required on an employee’s paycheck in regard to tax deductions or the their pay rate, these issues are taken care of in a timely fashion. Companies and their employees can be confident that their confidential payroll issues are dealt with in the most efficient manner possible.