End of Saturday Mail Effecting Your Paycheck?

The U.S. Postal Service will stop delivering mail on Saturdays, effective August 1, 2013.  Has your company’s considered how this will affect payroll? Will your company need to adjust payroll schedules and processes?

If you mail paychecks to other office locations or remote workers for a Saturday delivery, you will need to change your schedule for a delivery date that falls between Monday through Friday.  Make sure you look into other payees, such as retirees, temporary agencies and contractors, who’s pay date may also need to be adjusted. 

Other Payment Options

If you are on a tight schedule and this is not feasible, it may be time to work with those employee’s to move to direct deposit or pay cards.  This would eliminate shipping costs and the concern of constructive receipt of pay for those employees.  As payroll specialists know, all employees must have access to their money on pay day, regardless of how that has to be achieved.

Electronic Delivery

Another documents to consider are tax payments, tax returns and Form W2’s, all of which have specific deadlines that must be met.  There are other options that can be used to send tax payments electronically and avoid all late payments.  Electronic payments can be made through an ACH debit or credit file or via telephone.  Most states accept electronic files for tax return information, however your company must apply. You also need to work directly with with your payroll provider for the correct format and processing information required to send the electronic file to the state.

For example, for Form W-2’s, most companies are sending their files to Social Security Administration (SSA) electronically using the EFW2 file format.  Another option for the employee Form W2, with the consent of the employee each year, is through an email with a PDF attachment or an Employee Self Service application.  Check with your vendor for electronic W2 options.

This article has focused on payroll, however, there may be other areas within your company that would fall in similar situations.  Get started early identifying what is mailed for Saturday deliver, options you can use and begin the implementation process now.

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Assistant Vice President Corporate Accounting/Payroll Melody Wieczorek, Sterling Bank & Trust

I have never had an experience like this before, with other vendors there always seem to be a customer service issue in one way or another. At Optimum, when we leave a voice mail, someone always gets back to us within a short period of time.