Home >> Business Finance >> Treasury Managment Services >> Direct Deposit of Payroll

Direct Deposit of Payroll

Whether your business has seven, 70 or 700 employees, Direct Deposit of payroll can be a win-win.

By setting up Direct Deposit, you are creating an opportunity for employees to have their payroll electronically credited to their bank accounts.

Benefits to Employees

• Greater convenience, with no need to make special arrangements to deposit their checks
• Increased safety - no hand-carrying deposits to the bank or keeping their pay in their pockets. This will help your employees avoid being one of the four million people who lost or had checks stolen last year.
• Higher interest earned. By going through the Automated Clearing House (ACH), the funds are available for collecting interest at the beginning of payday, not when the employee finds time to make the deposit.

Benefits to Business

• Decreases check processing expenses. With Direct Deposit, businesses can save $0.10 to $1.25 on each payroll check processed.
• Increases employee productivity. Employees spend from 8.5 to 24 hours each year going to the bank to cash or deposit their paychecks. With up to 25 percent of all employees taking this extra time on payday to deal with payroll checks by hand, American companies could increase productivity by $3 to $5 billion if all employees used Direct Deposit.
• Simplifies the account reconciliation process. Instead of reconciling each individual paycheck that clears on the account, you make one ledger entry on your books for the one lump sum net pay amount that you will see deducted on your Pinnacle statement each pay period.

Need More Information?

For more information on our direct deposit service, please send us a request through the Contact Us form or call one of our treasury management advisors.

Middle Tennessee (615) 743-6200
East Tennessee (865) 766-3031

We have also developed a list of common questions and answers on Direct Deposit. Click here for the Direct Deposit FAQs.