As of September 23, 2016, Same Day ACH can be used for Direct Deposit to provide faster payroll payments for your company. This new law allows you to submit your payroll before noon and have your employees paid on that same day. Unfortunately, this can be a little more complicated than it first appears. That is why we compiled a list of frequently asked questions that hopefully clarify some of the finer details.
We strongly recommend you contact your bank to see where they stand with this new law. Banks vary widely on when and if they’ll have this option available and how much they will charge.
Q: How does it work?
A: If you miss your deadline for submitting payroll on Thursday, for example, and your company payday is Friday, you can submit payroll before noon on Friday and have your employees paid on time.
Q: How much does it cost?
A: If you’re a client of Dominion Systems, the regular $50 fee for Same Day Processing still applies. Your bank will have additional fees, so please contact them for details.
Q: Is this something we need to "sign up" for?
A: No, if your bank has this option available, Dominion will be able to do this after September 23rd without you needing to do anything on our end. Simply email our Client Solutions department at email@example.com on the day you need to submit a Same Day ACH.
Q: Are the funds disbursed immediately on the same day?
A: Yes, provided your bank observes this change and you submit before noon, money will be deposited on that day.
Q: Can I use Same Day ACH for international payments?
A: No, this feature is only available for payments with the U.S.
Q: Is there a limit to the amount of money that can be deposited when using this feature?
A: There is a limit of $25,000 that applies to each individual same-day direct deposit, but no limit to the total amount of the payroll file.
Q: Are there certain organizations that cannot partake in Same Day ACH?
A: Government agencies will not be participating in Same Day ACH.
If you have any further questions, please reach out to our Client Solutions team via the email listed above.