Make payroll deposits direct

Here’s a tip for all retail HR specialists: Direct-depositing payroll pays big dividends.

A recent study by the PayItGreen Alliance, a nonprofit representing 11,000 financial institutions, found that U.S. businesses have saved a total of $6.7 billion over the past 10 years by paying employees via direct deposit—an average annual savings of $605 million.

According to the study, a business with 50 hourly and 50 salaried employees could save $19,000 per year by switching to direct deposit; a business with 500 hourly and 500 salaried employees could save $188,000 per year by switching to direct deposit.

The strategy results in not only cost savings, but a positive impact on the environment as well. Key financial and environmental savings for just one U.S. employee (paid bi-monthly) using direct deposit included:

• Saves 1 lb. of paper.
• Eliminates the release of 4 gal. of wastewater.
• Eliminates the release of 1 lb. of greenhouse gases (equivalent of four miles not driven and a half-a-sq.-ft. of forest preserved for 10 years).
• Saves a business $176.55.

To find out your specific payroll savings, log onto ElectronicPayments.org , and click the “business” tab on top of the page to use the Direct Deposit Cost Calculator.