What is National Payment Direct Deposit of Payroll?
National Payment Direct Deposit Defined
National Payment Direct Deposit of Payroll is a service that allows employees to have their paychecks electronically credited to their bank accounts –checking, savings, or any other type of account – at any financial institution.
How it Works
At the end of each pay period, your company supplies National Payment with the payment information by modem or via the Internet. Then we send the transaction to your employees’ respective financial institutions (i.e., bank, credit union, savings & loan). You, the employer, provide a statement of earning to the participating employee with each Direct Deposit transaction. The financial institution will show the Direct Deposit on the employee’s monthly account statement.
Who Uses Direct Deposit?
More than 50 million employees in over 500,000 small and large corporations are paid through Direct Deposit. In fact, more than 50 percent of all private sector wage-earners choose Direct Deposit to receive their pay, up from 15 percent in 1990. In companies that do not currently offer Direct Deposit, more than 52 percent of employees say they would be extremely or very likely to use Direct Deposit if it were available. In companies that do currently offer Direct Deposit, 28 percent of the employees not using Direct Deposit have strong interest in using it in the future. And 92 percent of Government employees are paid through Direct Deposit. Direct Deposit is the way most Americans will be paid because it is the smart way to pay your employees.
Why Offer National Payment Direct Deposit?
National Payment Direct Deposit eliminates the need for your employees to make special arrangements to deposit their payroll checks. The Federal Government estimates that more than four million paychecks are lost or stolen each year. However, with Direct Deposit checks are never lost or stolen because payments are made electronically.There are distinct benefits that National Payment Direct Deposit brings to both you, the employer, and to your employees. And the rewards are many.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.