San Francisco Announces Paperless Payroll Initiative
In an age when technology has made many lives easier, some employers and employees still choose paper paychecks. San Francisco is looking to be the first City in the nation to tackle this issue head-on by creating the CurrenC SF program.
According to the CurrenC SF site, workers who receive paper checks often turn to check cashing companies, which costs the average worker $1,000 per year in fees. This is money that could be used in more useful ways. A lack of access to direct deposit can lock low-wage workers out of many financial options.
Employers who move to direct deposit payroll may lower their payroll processing expenses, such as printing and distribution fees. Lost or stolen paycheck replacement becomes a thing of the past.
Finally, San Francisco has calculated that the impact on the environment will be greatly reduced if just 10% of San Francisco's workers receiving paper checks moved to direct deposit.
Some Fun Facts
$8 billion: amount Americans without bank accounts pay each year for check cashing and other services
4 million: number of paychecks lost or stolen each year
$8-10: average employer cost for each replacement check
$2.87 - $3.15: average extra cost of each paper paycheck, per payment, vs. direct deposit
20 hours: amount of work time, per month, a financially distressed employee spends dealing with personal financial problems