This article will cover what you need to know about Same-Day Direct Deposit Payroll and dispel myths. This method of payroll payment is incredibly safe and easy to use. First, check the cost and safety issues. Then decide whether Same-Day Direct Deposit Payroll is right for you.
Instantaneous
Unlike traditional checks, payroll direct deposit is instantaneous. The funds are deposited into the employee’s bank account at midnight before payday. Because this process is automatic, no effort is required from the employee. With other direct deposit forms, the funds are available for withdrawal the next business day, whereas payroll direct deposit is available the same day. In addition, there is no bank hold for this method of payment.
The payroll service provider will then withdraw money from the employee’s bank account and verify the process. Next, the company will gather the necessary employee performance information, including their key numbers. These three numbers are the employee’s bank account number, routing number, and Social Security number. Once all this information is verified, the payroll provider can make the deposit. If all goes well, direct depositing payroll for employees will be faster than traditional methods of payroll deposit.
Safe
Employers have a variety of reasons to choose Safe Same-Day Direct Deposit Payroll. These programs save businesses time and money and offer peace of mind for employees. With a secure, automated process, employees never worry about missing or stolen checks and can view their pay stubs anytime they need. In addition, direct Deposit eliminates the hassle of filling payroll forms and chasing down employees.
When choosing a provider, consider the security and convenience of the service. For example, while some providers allow you to withdraw money the same day, others may require you to send a voided check. The security features you need to choose based on your organization’s needs will vary by provider. Make sure to check with a provider before deciding on a provider. Ensure that the payment processing time is adequate and the costs are fair.
Cost
The cost of Same-Day Direct Deposit is often overlooked, but the benefits of this payroll service far outweigh the costs. This service allows employers to deposit their payroll as late as seven a.m. PT, and it includes time tracking so that you can keep track of your employees’ hours. This service is the most popular and delivers comprehensive payroll. In addition, it’s easy to add benefits, including time tracking and HR support.
Same-Day Direct Deposit pays for itself within a few days. You’ll need to enter each employee’s information by 5 PM PT on Thursday if you’re running payroll using QuickBooks Online. Afterward, you’ll need to input any additional information for Friday payrolls, such as overtime or special payments. This service saves you time because you don’t have to enter these details manually. Furthermore, you’ll avoid any last-minute adjustments or lost paper checks.
Misconceptions
Many people believe that Same-Day Direct Deposit is a complicated process, especially if they don’t want to deal with manual data entry. However, it is a fast and effective process for most employees who receive their pay through direct deposit. In addition, the ACH Network makes payroll payments much more straightforward since companies can send the payments through a faster rail. This eliminates paper checks and last-minute adjustments that can lead to missed paychecks.
In addition to being faster, Same-Day Direct Deposit makes it easier to process employee pay and makes payroll more secure. Employees who receive their payment via direct deposit are more diligent in entering their direct deposit information. This benefits the employee, and the company since the data stays in the financial institution or payroll provider. On the other hand, printing payroll checks is costly for the employer.
Steps to get it
If you have employees who want to deposit their pay the same day, same-day direct deposit is an excellent option. With this type of payroll, your employees don’t need to go through the hassle of completing paperwork and distributing paper checks. Instead, all that’s required is a direct deposit authorization form, which can be entered into payroll software or uploaded to the bank’s online system.
Once you’ve created an account for your employees, the payroll service provider will withdraw the funds from the bank on the day they pay you. If the payroll is processed on the same day as the employee’s check, the funds will arrive in your employees’ bank accounts in two or three days. Using direct deposit allows you to avoid long lines and hassles, as well as avoid bank fees.
