Many employees use direct deposit to receive paychecks quickly because the service allows funds to be added directly to his or her bank account. Employers can learn how to setup direct deposit for their employees with assistance from employee benefit consulting firms.
The U.S. General Accounting Office estimates more than half of American employees use direct deposit. The service gives workers the opportunity to have funds electronically transferred to their bank accounts, eliminating a trip to the bank to deposit their paycheck. Many companies make the process of receiving direct deposit simple by having an employee to fill out a form with his or her banking institution's information.
While the service benefits employees, businesses can use direct deposit to reduce costs and increase efficiency. Companies can utilize the system to reduce bookkeeping needs and payroll costs. In addition, direct deposit can reduce the risk of check fraud as employees automatically have funds deposited into their bank accounts.
Employee benefit services offer the tools and expertise to help any business launch direct deposit. The consultants can provide information to employers and workers about the service.
