Can You Require a Switch to Direct Deposit? | Payroll Link


083115_Thinkstock_125938356_lores_KKIt may not be long before paper paychecks go the way of the five-and-dime store and the VCR. They may soon become obsolete as “direct deposit” into bank accounts is the predominant method of paying employees. And why not? All of the banking — including depositing the amounts into the employee’s account and acceptance of the funds — can be completed with just a few clicks of a mouse. Employees don’t have to worry about losing their checks and it reduces payroll hassles for employers.

The move to the direct deposit method won’t be a change for the vast majority of U.S. employees. According to one survey by the American Payroll Association, 96% of employees are already using direct deposit. Chances are it’s even more common for workers located in remote sites. No more waiting for checks to arrive by snail mail and no trips to the bank to deposit the checks.

While we remain in the final transition period from paper to electronic payment, several questions may be raised about this technology.

Read More

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s