Paychex is a payroll service that facilitates employees’ payments. Paychex payment services include direct deposit. Paychex deposits payroll funds right into employees’ accounts to access their money on payday.
This payment method has become very common in recent years, with nearly 94% of U.S. workers receiving their paychecks via direct deposit, according to the American Payroll Association’s 2020 America Survey.
What Time Does Paychex Direct Deposit Hit?
Direct deposits are supposed to be instantaneous, which means you get paid on the same day as the payer sends the money. However, the time frame for receiving this money depends on who sends the capital and from where.
For example, your employer has a system that ensures every employee gets paid per the payroll schedule. In this case, you can expect the direct deposit to hit at midnight on payday. With direct deposit, you’ll be paid for the month even before walking into work the next day.
Who Offers Direct Deposit?
Many people associate direct deposit with payroll. After all, switching over to an all-electronic system saves employers both money and time, so that is where most people first see natural deposit offerings. However, you can sign up for direct deposit payments from more than just your employer.
Why Opt For Paychex Direct Deposit
Suppose you are still receiving paper checks as payment. In that case, there are several reasons to consider making direct deposit your payment method of choice and direct deposit can also be used for the following purposes.
- Independent Contractors
Paying contractors via direct deposit also reduces payroll costs for the employer, reducing the need for cutting checks for payment.
- Social Security Benefits
As of 2013, all Social Security benefits are paid to beneficiaries via direct deposit. By switching to a natural deposit system, the Social Security Administration estimated a savings of $120 million per year, adding up to $1 billion in savings to taxpayers over the past decade.
- Child Support
Direct deposit can be a simple, convenient, and secure way to receive child support payments. Generally, parents receiving court-mandated child support will sign up for direct deposit through their state.
- Paying Bills:- Some recurring bills can be paid via direct deposit, such as rent or utilities.
Is Paychex Direct Deposit Safe?
Safety is a common concern with direct deposit. But this payment method is generally one of the safest methods of receiving payment. Unlike a direct deposit, cash or a paper check can be lost or stolen, and someone can fraudulently cash a check not made out to them. If you fail a paper check, the issuer will often charge you to reissue it. If your review is stolen, the process to get your payer to issue a stop payment can be arduous and expensive. A direct deposit does not have any of these potential safety issues. Since the money transfers automatically from the payer’s account to your account, it cannot be lost or stolen.
Finally, direct deposits quickly complete transactions. Rather than waiting for paper checks to arrive, be deposited, and clear the bank, a direct deposit gets the money to the recipient quickly and efficiently, meaning transactions are removed sooner.