Direct Deposit Costs

System

We offered direct deposit in the past, but it was eliminated due to the costs involved. Our present management made it sound as though it is very expensive, though a former manager once led me to believe it was only about $3,000 per year for the entire company. Can anyone give me a clue as to approximately how much it should cost per participant? (I'm in Texas if it makes a difference.)

I would like to address it again as new employees frequently ask if it is available. If it does not cost very much, it would be a great benefit to offer.

Anita

I don't know if this helps, but our payroll is done through PrimePay and they charge $6 per pay day for direct deposits whether we have 80-150 people.

Margaret Morford

[font size="1" color="#FF0000"]LAST EDITED ON 01-31-02 AT 10:52PM (CST)[/font][p]I know the HR person for Paymaxx. They are one of the largest payroll companies in the country and serve clients of all different sizes. They do direct deposit all the time. I would be glad to put you in touch with their HR Director for some help. E-mail me and I will forward you number on to him to call you.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

Theresa Gegen TX

With my last employer (a small one), we started direct deposit in 2000. The cost was about 25 cents a pay period per employee. I am sure that a larger company with more employees could get a better deal out of the payroll service. In fact, even at 25 cents per employee, we saved money, because before direct deposit, employees would routinely take extra-long breaks or lunch hours on payday to get to the bank.

It may be that the managers are relying on old data about the costs. Like most things involving technology, the costs have decreased over the years.

Good Luck!

neveradull

By using the bank we do business with there is no charge or fees involved and direct deposit it apreciated by our employees. Another plus is not having the cost of preparing and mailing checks.