The Electronic Payments Association has an online calculator as a tool for companies to understand how much they can save annually by converting payroll to Direct Deposit rather than paying by check. The calculator was developed by NACHA’s Marketing Management Group (MMG) in consultation with Treasury Alliance.

The calculator can be found on the business section of www.electronicpayments.org.

Direct Deposit remains the most widely used type of ACH payment accounting for over 5 billion payments in the United States. Direct Deposit is used for payroll, expense and travel reimbursement, pension and annuity payments, interest payments, retirement and mutual fund distributions, Social Security, Veterans and other government benefits, and tax refunds.

The calculator uses a company’s input and industry averages to determine a “typical” or “average” cost of implementing or increasing Direct Deposit at the company. Companies input the following numbers into the calculator:

Total number of employees.

Percentage of salaried employees.

Current percentage of salaried on Direct Deposit.

Target percentage of salaried on Direct Deposit.

Current percentage of hourly on Direct Deposit.

Target percentage of hourly on Direct Deposit.

For more info on ACH payment processing, visit nationalach.com