The New York City Office of Payroll Administration or OPA has been working since 1984 to make payroll smooth among civil service employees working under the government. Not only that, but this office also provides several other beneficial services to the employees. Although many of the employees still prefer sticking to the paper paycheck, with the innovation of technologies, Direct Deposit is also available for the employees. This is an automatic process that ensures the safe transfer of money in the employee’s account. Let’s look at the definition of Direct Deposit, the problems associated with a paper paycheck, and the benefits of this Direct Deposit system to know everything about this service.
- What is a Direct Deposit System:
A direct Deposit system is a method of cash transfer. This works mainly via electronic medium. In this system, the money gets transferred into the bank account of the employee automatically. So, this is a hassle-free medium. Here you don’t have to visit the agency now and then with every problem you have regarding the paycheck. In this system of Direct Deposit, the account of the employee stays linked to the employer. This way, the money gets credit to the employee’s account automatically at the beginning of every month.
- Problems with the old method:
Many of the employees still prefer the old medium of a paycheck. They like to get the paycheck at the beginning of every month via the agency. The reason for still preferring the same medium is that people and agencies are involved in this system. So, usually, people take it a safer way.
However, the truth is, this method has many problems associated with it.
- The first problem is one has to stand in several lines to cash the check or even deposit it.
- This method usually takes a bit longer period of time. So, there is no guarantee whether you will receive your salary on the first day of the month or not, no matter how urgent your needs are.
- In case the paycheck gets lost or stolen, you need to go through a whole lot of processes to get the money back. If the missing check has not been cashed, then there are higher chances of getting the money back right away. However, if the check has already been cashed, you may not get the money back at all.
- During the pandemic we all are going through right now, collecting and then depositing the paycheck is a process that needs much public exposure and is not safe.
So, many problems are associated with this old method where one needs to collect the paycheck in person at the beginning of every month.
- Benefits of availing Direct Deposit:
Contrary to the old method discussed earlier, Direct Deposit is considered a safer and smarter way of collecting a salary. In this medium, the employee’s bank account stays linked to the organization they are working for. It works via an electronic medium, and the salary gets credited to the employee’s account automatically at the beginning of every month.
There are several benefits of this Direct Deposit method-
- First, this process is way faster than the older one. This system works via electronic medium. So, the money gets transferred into the account within minutes.
- The pay is readily available at the beginning of every month. There is no hassle of collecting the paycheck and then cash the check afterward.
- As there is no paycheck involved in this method, the worry of losing the paycheck will also be gone. You don’t have to get anxious about lost and stolen paychecks anymore.
- No standing in line to cash the check. So, this method of Direct Deposit is genuinely a hassle-free method.
- As the money gets credited directly to the account, the employee may start getting interested in that salary right away. However, this benefit also depends on the bank’s policies.
- After enrolling in the Direct Deposit system, one may say goodbye to several unnecessary fees. Many banks even offer several other advantages to the customers who have availed Direct Deposit.
- As the whole process is automatic, you don’t have to worry about if the money has been credited to the account or not.
- During the pandemic, the Direct Deposit method is especially important as it means less public exposure and following the social distancing measures.
Direct Deposit is a simpler, faster, and smarter system. That is why; OPA is always encouraging everyone to get enrolled in this method. The process of enrollment is simple enough. One may directly get registered via NYCAPS Employee Self-Service, or they may print out the form and submit to the agency.