According to Payroll.org (formerly the American Payroll Association,) 93% of employees they questioned use direct deposit. My belief is that they only surveyed their members, payroll professionals. I doubt they surveyed real America and got feedback from the fast food worker, agricultural workers or the mechanic down the street. Not that payroll professionals aren’t real America, but you know what I mean. Based on what I find in practice, direct deposit is less than a 60% adoption rate. Maybe even much less than 50% because I am not looking at the small businesses that run their own payrolls in-house on…
Posts tagged as “Direct Deposit”
I wrote an article over 3½ years ago about direct deposit fraud, first published in the FBI annual Internet Crime Complaint Center (IC3) report for 2018, when about 100 complaints were reported. Today, years later, we are finding it occurring on too-regular of a basis, and I would not be surprised if there were 100 complaints a day. How it occurs is the fraudster diverts an employee’s paycheck to their “bank account,” which they will then clear out as soon as the funds hit on pay day. The two questions you may be asking are ‘how do they change the…
I had written a previous blog “Going Paperless” regarding paperless payroll as it pertains to the check stub, but I suppose I may have put the cart before the horse. You cannot really have a paperless payroll unless you get rid of the paycheck. Of course you have employees with direct deposit, but what about the unbanked, or those who may just prefer to get a check, rather than all of the conveniences of direct deposit? Are there ways to mandate direct deposit to become paperless? Yes, there are 25 states where the laws or enforcement positions can be interpreted…
Late last year, the Internet Crime Complaint Center (IC3), a division of the FBI released a public service announcement I-091818-PSA https://www.ic3.gov/media/2018/180918.aspx regarding the practice of payroll diversion by cyber-criminals. This announcement identified employees whose online self-service portal credentials were compromised, typically through a phishing attempt, and the criminal would change the direct deposit bank account of the employee to a loadable debit card in their possession. Unfortunately, once funds are sent to a debit card, the criminal can withdraw them without a trace. I am expanding that announcement to include another case of payroll diversion that we have seen. While…
Same Day ACH becomes effective on Friday, September 23rd, 2016, and one of its primary uses will be for the Direct Deposit of payroll transactions. Rather than the 1-2 day window for current ACH, payments will settle the same day for Same Day ACH. Employers should understand how they can effectively use this for those same day deposit needs. The nation’s 12,000 financial institutions will be implementing Same Day ACH, although some institutions may take longer than the end of business day to credit some employees’ accounts. By March 2018, all financial institutions will credit Same Day ACH deposits to…