Advanced Payroll Service, Inc. payroll services, payroll tax preparation, TWC Tax filings, IRS Electronic tax filing, CPA

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Direct Deposit

Why use Direct Deposit for your company?

Direct Deposit benefits your employees.

	Ninety-seven percent of employees that use Direct Deposit are very satisfied with it.
	The chance of your employees having a problem with a check is much greater than with Direct Deposit.
	Direct Deposit is especially helpful for employees who travel and those who work from home because they collect their pay without visiting the office or the bank.

Direct Deposit can save your company money.

	Direct Deposit eliminates the cost of delivering checks to employees at different locations.
	Direct Deposit eliminates the chance of lost or stolen checks and the resulting charges for stop payment and check replacement.

Direct Deposit can save your company time.

	Direct Deposit makes payroll reconciliation easier and can help you streamline your tax reporting at the end of the year.
	With Direct Deposit, there is no need for special check handling when employees are on vacation or out of the office.

Direct Deposit can help your company gain productivity.

Studies show that some employees spend the equivalent of three workdays each year going to the bank to deposit their paychecks.

Common Misconceptions

Myth	It will cost too much to convert my company's current system to Direct Deposit.
Reality	With APS Direct Deposit, most employers more than recoup their start-up costs in savings and increased productivity in the first year of use.
Myth	My company is too small to offer Direct Deposit to employees.
Reality	Whether you have five, 10 or 100,000 employees, Direct Deposit will streamline your company's payroll operations. Contact Us for more details.
Myth	I am not sure that my employees really want Direct Deposit.
Reality	Direct Deposit is a very popular employee benefit. Nearly 60 percent of employees without Direct Deposit say they would use it if it were offered. Ninety-seven percent of employees who use Direct Deposit are very satisfied with it.
Myth	With Direct Deposit, my employees will not know when their paycheck was deposited and how much was taken out of their pay for taxes, insurance and other items.
Reality	When we process payroll using Direct Deposit, your employees will be issued a payment stub that is identical to a traditional paycheck stub.

Frequently Asked Questions

Q:	What is Direct Deposit and how does it work?
A:	Direct Deposit is a safe, proven, confidential method of receiving a payment. Money is electronically transferred from a company or organization into a consumer's checking or savings account.
Q:	What is the relative cost of Direct Deposit versus checks?
A:	The government spends an average of 41 cents more to process a check than an electronic transfer (U.S. Treasury). In fiscal 1999, the government experienced more than $43 million in forged, counterfeited or altered checks. Attempted check fraud at commercial banks has doubled in recent years, exceeding $2.2 billion in 1999, according to the American Banker's Association.
Q:	Do I need special software/technology to process Direct Deposit?
A:	Many payroll software packages, as well as independent processors, provide a Direct Deposit formatting feature. There are also a number of reasonably priced PC software packages in the marketplace today. Check with your company's financial institution or regional ACH association to obtain more information and suggestions on recommended software.
Q:	Wouldn't it cost a tremendous amount to convert my company's payroll system to Direct Deposit?
A:	No. In fact Direct Deposit will most likely save your company money in the long run. In addition to savings in printing and postage, Direct Deposit also will save your employees time and ultimately increase productivity.
Q:	How do my employees know when their payment has been deposited?
A:	Most employers will issue a payment stub that is identical to what is received with a traditional paycheck. It will show how much was deposited in an employee's account and how much was taken out of the pay for taxes, insurance and other items.
Q:	If an employee has a problem with Direct Deposit, how do I solve it? Who should I call?
A:	Problems with Direct Deposit are rare. In fact, your employees are much more likely to have a problem with a check. But if any matter should arise, your employees should contact us. The problem can usually be corrected with one phone call.
Q:	Is Direct Deposit for everyone?
A:	Direct Deposit is an important benefit for companies to offer and for employees to use. As long as an employee has a bank account, Direct Deposit can be an excellent financial planning tool as well as a safe, private, convenient way to receive a payment. It is especially helpful for employees who travel and those who work from home because they collect their pay without visiting the office or the bank.
Q:	Why is Direct Deposit good for consumers?
A:	Direct Deposit is secure, convenient and fast. Payments have never been lost with Direct Deposit. Plus, Direct Deposit saves consumers from waiting in lines at the bank, and gives many people access to their money one to four days earlier than a check. The satisfaction rate for Direct Deposit is 97 percent.
Q:	How many people use Direct Deposit?
A:	More than half of Americans (53 percent) use Direct Deposit for their pay. Direct Deposit usage continues to grow. In 2000, more than 29 million consumers used Direct Deposit for their tax refunds. Ninety-seven percent of Direct Deposit users are very satisfied with it.
Q:	Why don't more people use Direct Deposit if it has been around for so long?
A:	Some employers don't offer it and some employees just haven't thought about it. We believe that Direct Deposit usage will increase when companies and employees know more about the substantial benefits.
Q:	Is the United States the only country using Direct Deposit?
A:	No. In fact, the United States is behind most European countries and some Asian countries in the electronic transfer of money. But we are confident that U.S. companies will catch up soon because Direct Deposit is such a confidential, safe, proven way to transfer money.

Source: Direct Deposit and Direct Payment, www.directdeposit.org and www.directpayment.org.

“God is with you in everything you do” Genesis 21:22