Direct Deposit - How Uncle Sam Can Encourage Employees to Use It
Employers often struggle with how to encourage employees to use direct deposit. While some states permit mandatory direct deposit, there are many other states which do not. Now, Uncle Sam wants to encourage your employees to use it. Why? Because when they retire, the Social Security Administration wants them to accept direct deposit of their social security payments. Seems that Baby Boomers are less likely than their younger counterparts to enroll in direct deposit or to use online banking. According to Treasury Department officials, 98% of problems with social security payments occur with paper checks. The Treasury and Federal Reserve Banks have established a website godirect.gov to enable recipients to enroll in direct deposit of their government checks. This website also describes the advantages of direct deposit - so let the government help you encourage employees to use direct deposit.