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

Take Our HR Benchmarking Quizzes

Take Our HR Benchmarking Quizzes

Paycor's research shows that 75% of high-functioning HR teams spend their time on mastering key pillars of HR excellence. Want to know how your team stacks up against others? Take our benchmarking quizzes to find out and get customized action plans based on your results. Recruiting Benchmark Quiz Benefits Benchmark Quiz Labor Costs Benchmark Quiz People Management Benchmark Quiz Compliance Benchmark Quiz

Webinar: COVID-19 and Unemployment Cost Management

Webinar: COVID-19 and Unemployment Cost Management

With unemployment across the U.S. skyrocketing, Ohio and 18 other states are revising unemployment laws to ease the burdens of Americans everywhere. How will these laws affect business owners? What do leaders need to do to remain compliant? Watch this webinar to learn more. Speakers: Ezrie Yellin and Katie Watkins Ezrie has worked in the HR compliance industry for 15+ years. He works across HIREtech’s technical and business teams to ensure that all products and services deliver the best user experience while enabling compliance across the employee life cycle. Katie leads the client relations team at HIREtech for several products, including Unemployment Claims Management. Her proficiency in cultivating processes that bridge the gap...

9 Ways to Manage Costs - Infographic

9 Ways to Manage Costs - Infographic

HR and business leaders are looking to cut costs—but cut too deep, or in the wrong places—and you’ll pay for it down the road. Check out this infographic to learn the 9 ways business leaders can manage costs and return to profitability in the future. Forego Discretionary Spending Develop a 90-day cashflow forecast based on your fixed and variable costs. Then, stress test the forecast against best/worse-case scenarios. You want to get a sense of how much (and where) you need to cut. Reduce Extra Supplies & Inventory Reevaluate inventory and supplies from the bottom up—ask what you need, rather than what you can reduce. Consider both best-case and worse-case scenarios: running down stocks might leave you unable to meet the demand of a...

8 Ways Manufacturers Can Manage Costs and Prepare for Future Growth

8 Ways Manufacturers Can Manage Costs and Prepare for Future Growth

It’s no surprise that many manufacturers are struggling: worldwide lockdowns have hurt demand while all-important supply chains have been badly damaged by factory shutdowns, particularly in China. At the same time, many businesses have been forced to temporarily cease operations, with remote work not an option. Businesses are hurting and even a quick return to normal won’t fix things. View 8 Ways Manufacturers Can Manage Costs Challenges Ahead Stay at home orders, radically reduced demand and disrupted supply chains are putting enormous pressure on the manufacturing sector. No matter how the upcoming months play out, manufacturing will be dealing with the ripple effect of this public health crisis for a long time. To help, we are sharing...