Payroll’s Role in Corporate
Disaster Preparedness Plans
Presented by:
Thomas Whalen
Director of Sales, NE Region
TFG Card Solutions, Inc.
38 Corrigan Way
Old Tappan, NJ 07675
646.285.2101
800.457.5809
trwhalen@optonline.net
TFGCARD
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Agenda
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Overview of corporate disaster plans
Payroll’s role in disaster preparedness
Disaster’s impact on the employer and employee
Tax deposit and filing relief
Implementation recommendations
Q&A
Suggestions
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Terminology
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Business emergency plan
Corporate disaster preparedness plan
Emergency management
Crisis management/planning
Business continuity planning
Disaster recovery planning
Contingency planning
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dis·as·ter (dĭ-zās'tər, -sās'-)
n.
An occurrence causing widespread destruction and distress; a catastrophe.
Anything that disrupts your pay process
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• Does your business have a plan?
• Do all employees know what it is?
• Have you contributed to the plan?
Companies across the globe are looking
for ways to ready themselves for these
disasters before they happen.
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Typical components of
disaster preparedness plans
Pre-Event Planning – Identify the
Issues and Put Tools in Place.
Threat avoidance
Alternative site evaluation
Succession planning
Resource stockpiling
Insurance
Training
Testing
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Put the plan in motion –
Resources help you get started.
http://www.ready.gov/business/_downloads/sampleplan.pdf
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Typical components of
disaster preparedness plans
Operational Recovery
Life Safety
Containment and clean-up
Damage assessment
Crisis communication
Mobilization
Interim/Manual operations
Operational recovery
Return home/Back to “normal”
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What about payroll?
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What about payroll?
Payroll departments have a key role in
corporate disaster planning, although most
don’t realize it until it’s too late!
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The need for pay is now
GREATER than EVER!
What happens when…
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The delivery mechanisms you rely on to disburse payroll throughout the
country are disrupted due to natural or manmade disasters?
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The easy answer = Get ALL employees on Direct Deposit
Goal: 100% direct deposit participation
Reality: Underbanked employees currently rely on paper
Source: FDIC Economic Inclusion Study
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¼ of your workforce can’t
participate in your plan.
Key Reasons for Unbanked in America:
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Not enough money
High service charges
Bounced too many checks
Do not trust banks
Banks do not feel welcoming
Language barriers at banks
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Hurricane Katrina
Client:
• National footprint
• Payroll operations not affected
• 20 stores in Gulf Coast region affected by hurricane
• Corporate plan distributes $500 aid to each affected team member
Only 1/3 received the aid in
their greatest time of need.
WHY?
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Alternative access to money
What is the importance of employee direct
deposit participation, especially when
disaster strikes?
Paper pay checks require employees to:
• wait for payroll to stop payment
• wait for the paycheck to be re-issued
• figure out how to get check cashed without ID
The tragic element of what’s happening doesn’t pay the bills.
Employees need alternative and immediate access to money.
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Even when checks were delivered…
Check cashing stores
ran out of money!
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The back-up plan…
Ensure all employees, the banked and unbanked, are on direct deposit.
• Traditional Bank Account
• Account at Credit Union
• Alternative direct pay
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Now that we understand…
Pay Distribution Goal 100% on Direct Deposit:
1st Partners in place: banks, credit unions, payroll cards
2nd Effective internal team communication
3rd Management buy-in
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Payroll down
What happens when
disaster strikes payroll?
Downtown Ft. Worth, TX 2000
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What is payroll’s back-up process for:
• Processing systems?
• Tax deposits?
• Overnights?
• Operations?
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Be Proactive
How proactively has your payroll department
contributed to the company’s disaster plan?
By having a plan in place you are able to:
 Your biggest investment, your employees
 Get to the root of the problem (direct deposit)
 Understand and access the tax implications, benefits, and aid available
 Gain full support of management team in direct deposit efforts
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Checklist
Payroll’s Plan
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Appoint payroll emergency team
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Back up banking contacts
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Tax resource
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Implement an alternative funding platform to accept emergency payments
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Set up tax preparation service specializing in business contingency planning
Learn about Disaster Assistance available through the IRS:
http://www.irs.gov/businesses/small/article/0,,id=147154,00.html
Debit card solution – to get to 100% direct deposit participation
- or Payroll debit cards to all employees – regardless of direct deposit
Outline emergency funding amounts for each employee or employee type
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Selling to Management
1. Motive – Is payroll’s disaster preparedness plan:
 A proactive effort to improve your organization - or  A response to mandate (i.e. how does your department plan to decrease spending in 2010?)
2. Investigate – Does your company have a disaster plan?
 No plan in place: share this presentation with management team
 Plan in place: ask management how to get payroll a seat at the table
3.Share – Schedule a meeting with management
Show management your plan that includes:
 Direct deposit mechanism for every employee
 Employee welfare plan (emergency funds)
 Tax implications
 Overall benefit to company
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Direct deposit to ease stress, minimize risk,
and prepare for the unexpected while:
• Increasing employee productivity.
• Protecting funds and easily replace lost cards.
• Stopping check delivery fees.
• Minimizing stop payment exposure.
• Eliminating escheatment liability.
• Reducing check fraud.
• Using existing direct deposit/ACH platform
• Going green – and reducing your carbon footprint
Every year paper checks use over 674 million gallons
of fuel & add over 3.6 million tons of CO2
to the environment.
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Don’t let your business be the one without a payroll plan.
Direct deposit helps
all employees in their
greatest time of need.
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