If there’s one thing employers want to make sure they have a handle on, it’s employee payroll. Your staff members work hard, and they are counting on that paycheck for their livelihood. Navigating the twisting channels of payroll and tax concerns can be confusing, especially for smaller companies, but there are tools and methods available to make the process easier for employers and employees alike.
Direct deposit is an increasingly popular mechanism through which staff can receive their compensation. If your small business doesn’t currently use direct deposit services, there are several benefits to consider.
The hallmark of the 21st century is convenience and mobility, and direct deposit offers a distinct advantage in this regard. On the surface, money being placed directly into employees’ bank accounts eliminates the need for depositing checks with a teller, but it can also be a lifesaver in instances when punctual payment is of the essence. Having to schedule time to go to a bank or credit union to deposit a check when you’re down to the financial wire can put a wrench in the works, and direct deposit eliminates that hassle.
It goes without saying that direct deposit is a very attractive option for employees when it comes to getting paid. In addition to aiding time management and providing peace of mind, direct deposit payments can provide workers with a host of other benefits. Many banks, notably the nationwide Bank of America, offer free checking accounts complete with online banking service for those who set up direct deposit payments. Such advantages provide employees with tremendous flexibility and a significant upper hand when it comes to taking control over their own financial future, offering them versatility and mobility with their finances.
Offering direct deposit also gives employers the opportunity to offer more attractive benefits for their staff. For example, many health benefits plans or even public transit programs can be easily and painlessly implemented via convenient direct deposit deductions from payroll every pay period. However, if your company doesn’t offer automated payroll to begin with, such benefits are unavailable. Not only is this less convenient for staff financially, but it closes the door on additional benefits that may aid in recruiting and retention.
Making the transition
Smaller businesses may be intimidated by the thought of switching from traditional payroll to direct deposit. Fortunately, HR outsourcing companies and PEO services represent a cost-effective way for employers to harness the benefits of direct deposit without an extensive investment of time and money.