Are you considering moving from paper checks to direct deposit? Many payroll software applications offer direct deposit. The Direct Deposit Option lets you deposit your payroll to employees' personal bank accounts without printing paychecks. There are distinct benefits for your company, your employees, and the environment by moving to direct deposit. Here are five reasons to make the switch!
Help the environment.
What is a printed check if not an expendable piece of paper which costs your organization money, yet lasts only until it makes its way to the bank? By implementing direct deposit, money is transferred electronically, eliminating the need for printed checks. This helps the environment by reducing paper checks, envelopes, and printer ink and wear. According to electronicpayments.org, checks add 3.6 million tons of CO2 to the environment as they travel through the payment cycle!
Save time and money.
Think of the process of printing paychecks. Gather the pay data. Be sure to keep enough checks on-hand. Get the printer ready. Line up the paper. Print and collate the checks. Hand them out or mail them. Keep the ones for the employees not present and remember to hand them out when they are present. Just think of all the steps you can eliminate by sending pay electronically! This saves your company valuable time and money. According to NACHA, small companies can save up to $3.15 per payment per employee by using direct deposit.
No more lost checks.
Nobody is perfect, and that includes employees. With printed checks, there is always the opportunity for lost checks. An employee puts a check in their pocket and forgets about it. Direct deposit eliminates that possibility, saving employers the cost of reprinting checks, and helping employees keep their pay without incident.
Employees love it!
Employees get their money faster. With direct deposit, money shows up in employee accounts seamlessly, as opposed to a paper check which takes time to deposit. People are often busy and don’t deposit their checks right away. No more having to come in on days off to pick up a check. With direct deposit, employees don’t have to worry about getting to the bank on time. Their money is already in their account waiting for them!
Direct Deposit can help protect you from losses incurred by fraud because of counterfeit, forged or altered checks. This subject is important now more than ever, and direct deposit is a simple way to improve security.
Adding direct deposit is a win for your company, your employees, and the environment. Implement direct deposit today and give yourself a pat on the back for a job well done!
Find more information about the benefits and cost savings of direct deposit, visit this page:
CenterPoint Payroll Software offers direct deposit. Learn more by clicking here.