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According to a calculation of the costs of paper checks vs. Direct Deposit payments, a company with 100 employees can save nearly $19,000 per year by switching to Direct Deposit, whereas a large business of 30,000 employees could realize over $5.7 million in annual cost savings.
Cost savings, along with the other benefits of electronic payments, are applicable to businesses of all sizes. Even if your business has fewer than 10 employees, you can realize substantial cost and time savings by switching to Direct Deposit. View our information especially for small businesses to learn more.
The figures shown here assume that 50% of each company's employees are salaried and 50% are hourly, and that all employees switch from check to Direct Deposit for payroll. The Direct Deposit cost calculator was used to estimate these numbers.
Small Business Cost Analysis: 100 Employees
| |
Current Costs |
Projected Costs
with Direct Deposit |
Cost Savings
with Direct Deposit |
| Direct Deposit |
|
|
|
Total Annual Cost
|
$840 |
$3,361 |
($2,521) |
| Cost Per Individual Direct Deposit |
$0.00 |
$1.36 |
($1.36) |
Annual Cost per Employee on Direct Deposit |
$0 |
$33.61 |
($33.61) |
| Check |
|
|
|
| Total Annual Cost |
$31,877 |
$9,057 |
$22,820 |
| Cost Per Individual Paycheck |
$8.39 |
$0.00 |
$8.39 |
Annual Cost per Employee on Checks |
$0 |
$319 |
$319 |
| Cost of Float |
|
|
|
| Total Annual Cost |
$0.00 |
$1,464 |
($1,464) |
| Cost Per Individual Payment |
$0.00 |
$0.39 |
($0.39) |
Annual Cost per Employee |
$0 |
$14.64 |
($14.64) |
Total |
|
|
|
Total Annual Cost
|
$32,717 |
$13,882 |
$18,835 |
| Cost Per Individual Payment |
$8.61 |
$3.65 |
$4.96 |
Annual Cost per Employee |
$327 |
$139 |
$188 |
Large Business Cost Analysis: 30,000 Employees
| |
Current Costs |
Projected Costs
with Direct Deposit |
Cost Savings
with Direct Deposit |
| Direct Deposit |
|
|
|
Total Annual Cost
|
$840 |
$757,154 |
($756,314) |
| Cost Per Individual Direct Deposit |
$0.00 |
$0.67 |
($0.67) |
Annual Cost per Employee on Direct Deposit |
$0 |
$25.24 |
($25.24) |
| Check |
|
|
|
| Total Annual Cost |
$6,855,092 |
$9,057 |
$6,846,035 |
| Cost Per Individual Paycheck |
6.01 |
$0.00 |
$6.01 |
Annual Cost per Employee on Checks |
$228.50 |
$0.00 |
$228.50 |
| Cost of Float |
|
|
|
| Total Annual Cost |
$0.00 |
$439,225 |
($439,225) |
| Cost Per Individual Payment |
$0.00 |
$0.39 |
($0.39) |
Annual Cost per Employee |
$0 |
$14.64 |
($14.64) |
Total |
|
|
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Total Annual Cost
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$6,855,932 |
$1,205,436 |
$5,650,496 |
| Cost Per Individual Payment |
$6.01 |
$1.06 |
$4.96 |
Annual Cost per Employee |
$229 |
$40 |
$188 |
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Consumers have embraced the concept that individual action can collectively lead to real impact on the environment. Invite your customers to switch from paper checks to Direct Deposit with a targeted marketing campaign using the free resources on this site.
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