A survey conducted by NACHA (a trade association of electronic payment vendors) of small U.S. based business owners reveals that 48% do not use direct deposit for payroll.  By not using directed deposit a company is forgoing increased employee satisfaction, thousands of dollars in annual payroll savings along with reducing the environmental impact in comparison to issuing paper checks.

The survey was completed by 2,249 financial decision makers of U.S. companies with $20 million or less in sales.

The survey revealed that: 

• 52% of the organizations that use direct deposit, only 30% have 100% participation.
• 18% of small businesses with revenue between $10 to $20 million still do not use direct deposit.
• Business with less than 75% salaried employees are less likely to use direct deposit.

It can cost a company up to $2 to cut and process a hard copy check vs. 35 cents or less to have the money directly deposited.  A business with 25 or more employees could save $2,000 per year with direct deposit.  Hard dollar savings and increased employee satisfaction makes direct deposit worthwhile.

Total Team Solutions has been helping small and mid-sized companies by providing payroll services, cost effective employee benefits along with human resource support.  To learn more, please contact Rob Lynn at 800-836-9678  ext. 11