Payroll and Direct Deposit Go Together Like…


Michael Herd

Michael Herd

Senior Vice President, ACH Network Administration


Like ice cream and hot fudge, and Simon and Garfunkel, some pairings are legendary. Direct Deposit and payroll fit that description to a T, and the opportunity to honor that combination is coming up during National Payroll Week 2020, Sept. 7-11.

Organized annually by the American Payroll Association since 1996, one of the goals of National Payroll Week is, as APA puts it, to educate people on “how to get the most out of their pay.” The APA and Nacha agree that Direct Deposit is one of the most important ways to do that and get faster access to money on payday.

APA states a very simple, straightforward truth: “Payroll is the reason people go to work. Thanks to Direct Deposit, payroll doesn’t have to be the reason people go to the bank!”

That was true long before COVID-19, and it’s especially relevant now. Direct Deposit takes paper paychecks out of the equation. The payroll department doesn’t have to be in the office to process and distribute checks; instead, they can process Direct Deposits while working remotely. Additionally, employees don’t have to be present or come in to pick up checks, take them to a bank, and wait for the funds to clear; instead, their money is available the morning of payday without lifting a finger.

Direct Deposit has kept up with the times. Emergency payroll was the original use case for Same Day ACH when it launched in 2016, and in 2019 business-to-consumer payments—which includes payroll payments—were the fastest-growing use of Same Day ACH.  

Direct Deposit, whether standard or Same Day, is also perfect for those that are increasing the frequency of paydays. It’s just as easy to send Direct Deposits once a week as it is once a month.

APA also notes that Direct Deposit can help Americans set up a savings plan. It’s what we call Split Deposit, and it’s an easy way to automatically save. An employee can have their employer split a Direct Deposit among accounts, setting aside a fixed amount or percentage each payday to go for savings. 

Of course, none of this happens without the help of payroll professionals. This National Payroll Week be sure to thank the folks at your organization who make payday a reality. Nacha also salutes our Nacha Certified payroll processors: Paychex, Paycor, and myPay Solutions.

The next time your pay shows up in your account, just like that, thank payroll and Direct Deposit, a legendary pairing like peas and carrots. 

Visit the National Payroll Week website. 

Learn more about Direct Deposit at Nacha’s Direct Deposit Delivers site.