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SAN ANTONIO, Texas, Aug. 28 -- Last year, thousands of workers saw their paychecks disappear under floodwaters during a tumultuous hurricane season. As the one-year anniversary of Hurricane Katrina approaches, the American Payroll Association (APA) urges Americans to utilize direct deposit to ensure that their paychecks are always accessible, even when you have to leave home in a hurry.
When hundreds of thousands had to flee the Gulf Coast in 2005, evacuees who used direct deposit for their paychecks were able to access their funds at any ATM or point-of-sale terminal, even if they had to travel hundreds of miles to escape the weather. Evacuees who still relied on paper paychecks, however, had to wait weeks or even months to get their pay. The situation was also difficult for custodial parents waiting for paper check child support payments, which can also be delivered through direct deposit.
"Direct deposit would have made a tremendous difference for many of last year's hurricane victims," said Bill Dunn, APA's manager of Government Relations. "It's easy, it's safe, and it ensures your paycheck will be accessible, even when your future may be uncertain."
Despite the advantages and availability of direct deposit, many workers in America still don't utilize the free service. In fact, a survey by the APA showed that only 56 percent of America's workers participate in the program.
What's holding people back? In large part, it's misinformation and misconceptions about direct deposit that keep people from signing up for this easy-to-use payment option.
For example, more than 50 percent of people polled in a U.S. Department of the Treasury survey erroneously think that direct deposit of payments like wages, salary or government benefits have to go through the Internet to be deposited into an account.
The facts? Direct deposit works by transferring funds directly into an account through a highly secure electronic banking system -- not the Internet. It is the same system used by the world's leading financial institutions.
For more information, quotes and statistics on the many benefits of direct deposit, contact Mark Coindreau at 210-226- 4600 ext. 2277 or visit the National Payroll Week Web site at http://www.nationalpayrollweek.com. The Educational Resources/Direct Deposit section provides benefits of direct deposit, frequently asked questions and links to other information sources.
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For Payroll and Human Resource Professionals
