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Workforce Management

What Payroll Vendors Are NOT Telling You About Same Day ACH

Paycor offers Same Day ACH to clients—just like many other vendors. But

here’s what others are not telling you.

What is Same Day ACH?

With Same Day ACH, employers now have more flexibility and accuracy in

issuing direct deposit payments. Employees can now receive deposits on

the same day that payroll is initiated, while last-minute adjustments

are no longer an issue when ensuring the right payday amount is

deposited.

The Fine Print

Some payroll vendors are touting Same Day ACH as a product enhancement

that they are uniquely offering. Others are emphasizing the positive

aspects but failing to call out the limitations and restrictions.

*#1 Same Day ACH is not like wiring cash to an employee

Keep in mind your employees will not receive money in real time.

Promising otherwise can lead to serious complications. Same Day ACH

deposits would be available to ensure proper bank funds, for example,

but employees wouldn’t have those funds to make a purchase or buy lunch.

An employee’s bank won’t be required to fund the account before the end

of their processing day, but Same Day ACH acts as a placeholder in the

account to guard against overdrafts and the like.

*#2 Restrictions do apply

No international items or deposits are eligible for Same Day ACH.

Deposits over $25,000 are also ineligible.

*#3 Complications exist

Payroll funds need to be wired by clients to vendors before banks will

send the direct deposits.

*#4 Additional fees apply

Processing Same Day ACH deposits cost more to process for banks, which

lead to fees normally not charged.

Questions? We’re here to help. Feel free to call your customer service

rep or our main line at 800.381.0053


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