Payroll Accounting Services in the US

Sign up for direct deposit To set up direct deposit, you'll likely pay a nominal one-time set-up fee, then about $4 to $9 per payroll period plus a nominal fee per check, usually a few cents. Even if your savings don't outweigh your costs, you might still want to offer direct deposit as a low-cost employee benefit.

I recommend:  Check out the following payroll vendors: Paychex, Wells Fargo, Intuit, ADP and Advantage Payroll Services. Bank of America will even process your payroll for free if your employees have direct deposit at BofA.

Consider payroll cards Payroll cards can work for employees who don't have t bank accounts. But be sure to inform them of the costs. Ask prospective vendors whether employees can use the cards at ATMs and for in-store purchases, whether they'll incur a fee each time they use the card, and whether additional fees apply (i.e., 'inactivity,' replacement or load-in fees).

I recommend:  Among the well-known payroll companies offering payroll cards are ADP and Paychex. To inform employees about the costs and options, refer to this helpful checklist from Consumer Reports.

Do your due diligence Payroll companies are less closely regulated than banks and thus require due diligence, particularly if you're not dealing with one of the better-known companies.

I recommend:  As of July 2007, these accounts will be protected by law (like a bank that is FDIC insured), but for now, it's a good idea to check references and to check vendors out with the Better Business Bureau.