Part of keeping your staff happy to work for you involves making it easy to get paid. Here are benefits of offering direct deposit for your business.
Did you know 82% of U.S. workers get paid via direct deposit? It’s essential that businesses make it easy for their employees to get paid.
You want to keep your employees happy and an easy way to do this is by paying them the amount expected on the scheduled date. Keep reading and we will walk you through the 5 benefits of offering direct deposit.
Payroll
Payroll consists of keeping track of the cost of paying employees and having a schedule for payments.
As a business, it’s your job to make sure you’re paying your staff. If they show up and do their job every day, they deserve to be paid for their work.
Employees can use the money immediately when it hits their account.
Some people feel that using paper checks gives you more control over your money and makes it easier to keep track of your paystubs.
This is a misconception because paper checks are not only bad for the environment but could get lost in the mail or during your transit home from work. It’s a lot easier to have your money automatically transferred to your bank account.
5 Benefits of Offering Direct Deposit
Direct deposit automatically transfers an employee’s paycheck into their checking, savings, or money market account from their employer. It’s a secure way of payment and convenient.
Direct deposit makes payroll efficient and cost-effective. There are benefits for both the company and the employee.
- Employee Convenience
Almost everything is done online when it comes to banking. Banks have developed apps to make it easier for people to access their checking account, savings, credit cards, and bank statements.
If you have to go into the bank, it’s more effort for the employee to make the trip. Also, banks are closed on holidays. Direct deposit allows for employees to get their money even during a holiday.
- Cost-Effective
Direct deposit is cost-effective for businesses because it eliminates extra expenses. An employer has to pay for checks, a printer, and ink to print out the checks.
Employees will still want to keep track of their payments and you can set this up online. You can use a modern paycheck stub template.
- Payment Safety
Direct deposit is a safe method for both the employer and the employee. The employer is putting the money directly in the employee’s account.
Employees can’t tamper with the paychecks and it eliminates any room for error if a check is sent to an old or the wrong address. You will also save time on having to correct any issues with paper checks, such as an employee losing theirs and you have to send a new one.
- Save Time
Depending on how many employees you have, payroll can take up a lot of time. Direct deposit eliminates your team from having to print out the checks, put them in envelopes, and mail them.
All your team needs to do is go into your payroll software. This leaves little room for error on their end as well.
- Environment Impact
No paychecks or envelopes means paper companies use fewer trees and energy to produce paper. Every small step counts.
Set Up Payroll Direct Deposit
Start offering direct deposit as the direct source of payroll for your business.
You will save money, provide convenience, and save the environment.
Look into online payment templates or keep reading about the latest news in business and finance here.