On the heels of the recent announcement that all federal benefit payments will be made electronically starting next year, Montgomery County Auditor Karl Keith announced that he is implementing a mandatory electronic payment policy for county employee paychecks later this year.
Beginning in August, the county will no longer issue paper payroll checks to any permanent county employee. Instead, an electronic payment will be made through direct deposit into an employee bank or credit union account as authorized by each employee. Authorization forms must be completed and submitted to the auditor’s office by July 13.
In addition, the county will no longer provide employees with a paper payroll advice but will provide a link on the county’s website to access payroll information.
"Doing away with paper checks and payroll advices will be easier to administer and will definitely cut costs," Keith said. He estimates the county will save approximately $20,000 annually in paper expenses alone by implementing this policy.
Emphasizing that the county has offered direct deposit of payroll as a voluntary option for employees for a number of years, Keith called this a "safe and reliable process that takes advantage of technologies that employees are already familiar with and use almost everyday."
Montgomery County employs more than 4,500 permanent employees. Approximately eighty-five percent of those employees are already receiving their bi-weekly payroll by electronic payment, but more than five hundred continue to receive a paper check.
The authority to require electronic payments for payroll was granted to county auditors through legislation approved by the Ohio General Assembly and signed into law in December, 2011.