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LETTER TO ANNOUNCE A NEW PROGRAM:
To: All employees
From: [name of HR/Payroll Manager or CEO]
Subject: Direct deposit
Date: [date]
We’re excited to announce that soon, we’ll be making a new benefit available to all
employees of [organization]: the option of receiving pay via direct deposit.
We’ve compared direct deposit to paper paychecks, and there are several reasons why
we think direct deposit is better. It’s better for our business, because it’s more efficient
and affordable. It’s better for the environment, because it reduces paper waste and
greenhouse gas emissions.
But the biggest advantages go to the employees who sign up. Compared to paper
paychecks, direct deposit makes payday faster, safer, more convenient, and less
expensive. More than 75% of all Americans choose to be paid via direct deposit.
We hope you’ll consider taking advantage of this new benefit, and make the switch to
direct deposit. We’ve included an enrollment form with this letter. If you’re interested,
complete the form and return it to [name of person coordinating signup] by [date].
Below, we’ll discuss some of the benefits in detail. We’ve also attached answers to
frequently asked questions. And if you have any further questions, contact
[name/department] at [555-5555].
LETTER TO INCREASE PARTICIPATION IN A CURRENT PROGRAM:
To: All employees receiving paper paychecks
From: [name of HR/Payroll Manager or CEO]
Subject: Direct deposit
Date: [date]
Recently, our company took a look at how we handle payroll, and we decided to make
direct deposit available to as many employees as possible.
There are several reasons why we think direct deposit is better than traditional, paper
payroll. From a business standpoint, it is more efficient and affordable. Because it
doesn’t consume paper, it’s better for the environment.
But our employees see the greatest benefits. Compared to paper paychecks, direct
deposit makes payday faster, safer, more convenient, and less expensive. That’s four
reasons why more than 75% of all Americans have chosen direct deposit.
We hope you’ll consider making the switch to direct deposit. We’ve included an
enrollment form with this letter. If you’re interested, complete the form and return it to
[name of person coordinating signup] by [date].
Below, we’ll discuss some of the benefits in detail. We’ve also attached answers to
frequently asked questions. And if you have any further questions, contact
[name/department] at [555-5555].
CONSIDER INCLUDING:
Direct Deposit Features and Benefits
Convenient
Every payday, your pay goes into your specified account (or accounts). Even if you
can’t get to the bank.
Fast
No teller lines, no wasted lunch breaks, no waiting for your check to clear.
Safe
No more misplaced, stolen or damaged paychecks.
Confidential
Paper paychecks can be handled by as many as 12 people before reaching your
account. Direct depositis an electronic transaction, involving only a few people.
Reliable
The direct deposit system is the same oneused to deposit millions of Social Security
payments every month. You can count on it to be there, on time, payday after payday.
You’ll receive a pay stub confirming that your money is in your account.
Free
Direct deposit costs you nothing. It’s a free benefit.
CONSIDER INCLUDING:
FAQ:
Q: How reliable is direct deposit?
You can count on it. Not only will your pay be automatically deposited into your account
on time, every time, but with direct deposit your money will be available as early as
midnight on payday – giving you much quicker access than if you received a paper
paycheck. The Social Security Administration uses direct deposit to process more than
18 million Social Security payments each month, and not a single one has been lost.
Q: Is direct deposit safe?
Yes – especially when compared to paper checks. In the US, more than four million
paychecks and benefit checks are lost or stolen each year. With direct deposit this
never happens – your money is much safer. Furthermore, direct deposit payments are
encrypted to make sure transactions can’t be rerouted or altered.
Q: Is it as convenient as a traditional paycheck?
More so. With direct deposit, you get your funds instantly every pay period. That means
you don’t have to wait in line at your bank or credit union; your funds are available by
the opening of business on payday, and usually earlier. If you are out sick or on
vacation, or even in case of a natural disaster that closes banks or interrupts the mail,
your funds will be deposited in your account and available for use.
Q: Is my information confidential?
With direct deposit, your information is even better protected than with paper-based
payroll. Fewer staff members have access to your information during processing, and
because payments are transmitted directly to your account, it doesn’t pass through
intermediaries.
Q: Will I still be able to see all of my payment information, such as hours and
earnings, taxes, deductions, and benefits?
Yes. With direct deposit, you will continue to receive payroll (“pay stub”) information, just
like you do with a paper paycheck. Even better, you may be able to receive your pay
stub electronically, making it even more convenient to store and review this information
– and reducing paper waste!
Q: What will this cost me?
Nothing. This is a free employee benefit. Also, many banks and credit unions offer free
checking services to customers that sign up for direct deposit.
Q: What if I don’t have a bank account?
We can help! Through the City’s award-winning Bank on San Francisco program, you
have access to free or low-cost checking accounts at 14 local banks and credit unions.
Bank on San Francisco makes it easy for someone to get a bank account – even if
they’ve had problems with an account in the past, have never had an account before, or
are not a U.S. citizen.
Q: I don’t want the joint owner of my checking account to know how much I make.
How can I participate in direct deposit?
The best way to keep transactions confidential from a joint-account holder is to open
another single account. Depending on your company’s policies, generally portions of
your pay can be sent to more than one financial institution or account. You should
choose one account that you will be comfortable using for direct deposit for an extended
time.