Direct deposit is a payment option where funds are electronically transferred from a source directly to a checking or savings account. It can be set up and used for a number of different kinds of payments, such as tax refunds or social security deposits, but it is most commonly used for paychecks.
Direct deposit is a fantastic option for employees wishing to have their checks automatically deposited for them because it eliminates the need to visit a financial institution’s branch during normal business hours, or the need to use a mobile app to capture a photo of the check, then deposit it electronically themselves. In many cases, it also means the funds will be available one to two days faster than with traditional paychecks.
Direct deposit is also great for small businesses, especially staffing agencies that need to issue paychecks to a variety of workers within a variety of jobs. It completely eliminates the need for paper checks, as well as the expense for envelopes and stamps. So, it’s not only more environmentally friendly, it saves money and time.
Think of how much effort it takes to print a check, stuff it in an envelope, put a stamp on it, put it out for the mail carrier to pick up or take it directly to the post office, etc. It’s so much more efficient to key in basic information once, track hours online, then push a button and payment is made.
Staffing Software from Coats SQL is a perfect example of this kind of efficiency in action. When a candidate first applies for a job with your agency, all of their pertinent information is loaded into our customer staffing software database that can be used by both the front and back offices. Once that candidate become an employee, they can opt into direct deposit, and it can be set up on their online file—without needing to rekey any of their other information.
Then, as timesheets are submitted (also electronically), Payroll can verify the information and send payment directly to each employee’s designated checking or savings account with a simple click of a mouse. And, all of this information is then available for Accounting, when it comes time to issue tax forms.
Simple. Efficient. Safe. That’s the Coats SQL way.