These days, many employers offer direct deposit as an option for receiving your scheduled wages on payday. Direct deposit is not only a convenient method of getting paid, but has also proven to be safe and confidential as well. Money is electronically transferred into a checking or savings account on a specific day.
There are several advantages to using direct deposit for both the employee and the employer. Here are just a few:
When your money is automatically deposited into your checking account, it eliminates several physical steps that would normally have to take place. There is no longer a check that you need to sign and take to the bank to deposit. No more waiting in line at a bank on payday.
Eliminates Checking Account Fees
Many banks are willing to wipe out monthly checking fees if you elect to use direct deposit. If your bank doesn’t offer this, it’s a good idea to find one that does to help you save that money each month.
Helps with Saving Money
As you set up your direct deposit, you can elect to have a certain portion of your check routed directly to your savings account. This is an easy way to help you save money. The advantage of using a savings account is that it often pays better interest than a checking account.
Get Payment on Time
One of the biggest advantages to having direct deposit is that it allows you to receive payment on time regardless of where you are. Even if you are on vacation, for example, your pay will still be deposited into your account. With some banks, you may even notice that your paycheck hits a day or 2 early.
Helps the Environment
Studies show that direct deposit actually makes a huge difference in the amount of paper and water that they use to print checks. One employee alone switching to it can save as much as a pound of paper and 4 gallons of wastewater each year.
Better for Employers
While there are several advantages of using direct deposit for an employee, there are just as many for an employer as well. It makes paying employees easier by saving time, money and manpower. It’s much more convenient to simply transfer funds to bank accounts rather than having to manually print and sign checks. It also eliminates the worry of paying employees on time.
Have More Direct Deposit Questions?
To learn more about the advantages of direct deposit or to discuss payroll options for your business, please contact Hacker Accounting at 602-375-5251. We’re more than happy to share our suggestions and ideas with you.