A recent blog post by Patriot Software, Inc., offers a comprehensive review of the “Advantages of Employee Direct Deposit.” But for many contractors, direct deposit isn’t just a nice perk, it is a necessity.
Many contractors are working away from home and their banks don’t have branches in the areas where they are contracting. There is no way to deposit a paycheck short of driving to the bank location, which is probably not possible until the weekend when bank hours are limited. Plus, deposits made over the weekend often are not available until the following work day. Meanwhile, even with a check in hand that is more than enough to cover expenses, the contractor often ends up paying bills late and receiving penalties for doing so.
Direct deposit eliminates this issue because the money is automatically deposited into the bank account on pay day. It is immediately available to pay bills and make withdrawals, so the contractor isn’t stuck with a useless check until they can get to the bank. The contractor saves money because there are no penalties and no wasted gas driving to the bank location.
Direct deposit can sometimes be hard for contractors to come by because the company they work for is not their employer and will not provide that service, and staffing agencies don’t always allow direct deposit. But if you are using FoxHire as your contract staffing back-office service provider, all of your contractors will have access to direct deposit. When “selling” contract positions to your candidates, direct deposit may be a good benefit to mention, and the Patriot Software blog post can show them why it’s so valuable.
