What Payroll Vendors Are NOT Telling You About Same Day ACH
What Payroll Vendors Are NOT Telling You About Same Day ACH

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


subscribe to Paycor's Resource Center

Subscribe to Our Resource Center Digest

Enter your email below to receive a weekly recap of the latest articles from Paycor's Resource Center.

Check your inbox for an email confirming your subscription. Enjoy!

More to Discover

HR

The Different Types of Turnover

The Different Types of Turnover

Voluntary vs. Involuntary Turnover Regardless of business type there are two main types of employee turnover: voluntary and involuntary. Within each of those categories, however, you’ll find various reasons for why a company might have employee turnover. While the term “turnover” sometimes has a negative connotation, not all turnover is bad. For example, when a poorly performing employee is let go and replaced with someone who is motivated and excels at their job, productivity can soar. This new worker can bring bottom-line benefits, as well as provide an overall boost to team morale. What is involuntary turnover? Involuntary turnover includes layoffs or reductions in force and terminating poorly performing employees. The first type of...

How to Make the Most Out of Small Business Tax Credits

How to Make the Most Out of Small Business Tax Credits

Paying taxes is a necessary evil of running a small business Just the mere thought of year-end can really stress some folks out. Paying federal, state and sometimes local small business taxes can take a big bite out of a company’s bottom line. And sometimes it can feel like all of that hard-earned income is going straight into Uncle Sam’s coffers. Fortunately, if you take advantage of a handful of small business tax credits they can help reduce the sting. Note that these are just a few tax credits available to qualified small businesses. Always consult your accountant to make sure you’re taking advantage of the maximum available. Tax Credits vs. Tax Deductions First things first. It’s important to keep in mind that there’s a definite...

SMB

How to Pay Yourself as a Business Owner

How to Pay Yourself as a Business Owner

Paying Yourself Sounds Like a Dream Come True Having the opportunity to set your own salary sounds like a dream come true, right? Being self-employed has lots of perks but it also has a whole slew of rules that people who are employed by companies don’t have to follow. One of the big rules is around how self-employed people pay themselves. Do You Really Have a Salary? It’s common to hear business owners talk about their salary from their business, but that’s not really how most business owners typically get paid. How small business owners pay themselves out of the business depends on how the company is set up from a legal standpoint. S corps, C corps, sole proprietorships and LLCs, all have different rules governing how their owners,...

Webinar: A Time Solution Made Simple

Webinar: A Time Solution Made Simple

As an owner or employer, it is extremely important to stay in control of your costs and you can with Paycor Time. Automating how you schedule employees and how they clock in and out is the first step to gaining insight on how to monitor and track labor costs. Stay in control! Speaker: Rob Whitworth and Lyle Weissinger Rob Whitworth is a Principal Product Manager for Payrcor's Perform Time soltuion. He has been with Paycor since 2013 and has been in the time and attendance industry for 17 years. Lyle Weissinger is a Senior Product Marketing Manager for Paycor's time solutions.