Believe it or not, there are a lot of small businesses writing paper checks on payday instead of using an online payroll service. When an employee receives a paper check, they have to visit the bank or log in online to cash or deposit the check. Those funds could be placed on hold, leaving the employee without immediate access to their money.
Automated clearing house (ACH) services and direct deposit allow businesses to send and receive payments electronically — including payroll. Using ACH direct deposit for payroll provides your employees with a faster, easier way to access their paycheck.
Now that we have covered how ACH services and direct deposit benefit employees, let’s look at how online payroll services benefit business owners.
Time and cost savings
Businesses that only have a few employees might think that ACH services will cost them more money. In the long run, however, using ACH services helps owners save on the costs of printing paper checks and save the time it takes to sign and hand them out to employees.
Online payroll services can also save time for those do-it-all business owners who are busy managing other areas of their business and want to spend less time processing payroll. ACH services allow business owners to restrict what other employees can see, such as account balances or other sensitive data, but still allow other employees to process payroll transactions. Leaving more time for you to focus on other parts of the business.
When using ACH services and direct deposit you will no longer have to deal with the risks of handing out paper checks that include your business’s routing number and account number, which ultimately could cost your business more than direct deposit. ACH services and direct deposit also come with specific steps to monitor for fraud.
Easy setup, streamlined payroll process
Setting the service up is very simple. At Northwest Bank we work closely with business owners to walk through the payroll file process step by step. Once ACH service is set up, you can streamline your payroll process by setting up a payroll file. All of the information entered stays in the system and before payday all you will have to do is change the amounts and hit submit.
ACH and direct deposit services are accessible through an online business banking portal, meaning you won’t have to install any programs on your computer. Business owners and employees in charge of processing payroll are able to log in and approve payroll transactions on a computer or a phone.
If you’re considering using ACH services and direct deposit for your business, visit with one of our commercial banking experts to learn more about how ACH services can help streamline your payroll process.
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