By Brittany Llorente
Media Marketing Associate
On May 5, 2016, The American Payroll Association held one of their very popular Payroll Twitter Chats. As the self-proclaimed “Social Media Queen,” I do my best to actively participate in their chats. They are not only very informative about what is happening in the payroll world, but you get a chance to hear what other people in the payroll industry are thinking and doing. These participants can be industry experts, software vendors, and payroll associates.
The focus of the last chat was Paperless Payroll and I was very excited to join in on the chat. At Greenshades, our software helps businesses implement direct deposit easily. We are very “Pro-Direct Deposit” for more reasons than that. Direct deposit is paperless and in turn, it saves some trees in the process. Yet, even working for such a green company, I still learned a thing or two about direct deposit.
Direct deposit is very popular
Yes, this wasn’t something new. Banks find it easy, employees don’t have to wait for their checks, and no one has to walk around and distribute them. However, according to the Electronic Payments Association, a whopping 82% of U.S. workers are paid by direct deposit. This is an 8% increase from 2011. At Greenshades, we are at 100% direct deposit enrollment and we pride ourselves on that. Out of the U.S. workers who are enrolled, 87% are highly satisfied. In addition, 83% feel that it is safe and secure, compared to the 52% who are paid by check who feel that it is safe and secure.
There is still a bit of room for growth in the direct deposit world. Employees believe that payment by direct deposit helps them with their finances as well as pay their bills on time.
The ability to have your deposits deposited in different accounts is a great benefit
Since I’ve never used it myself, I never considered the benefits of depositing my paycheck into different accounts. I mean, why? I can just transfer out the amount that I want to when it is time to transfer it out. Well, there are many reasons, but the number one reason tends to be for savings. If you don’t see your money transferred into your main account, it is easier for you to keep it and not spend it. If you’re looking for a way to save money, ask your employer your direct deposit options. According to the Electronic Payments Organization, 24% of employees nationwide split payroll deposits in savings, 401k, money market or prepaid accounts.
Same-day ACH will be available in the near future
Though the census of the chat was that payroll departments likely wouldn’t come to depend on same-day ACH, sticking with their currently scheduled ACH structure, but would use it if there was an emergency or other qualifying reason to do so. More information on same day ACH can be found here.
If you would like to read through the chat, the American Payroll Association put together a recap of the chat, click here.
Is your business struggling with direct deposit enrollment? Click here for a demo of our employee services and find out how to empower your employees with self-enrollment.