Payroll on Bloomberg Tax is built to get you to the right answer faster and more efficiently. Get all the payroll intelligence you need with Bloomberg Tax expert analysis, perspectives and...
Same-day processing of Automated Clearing House payments totaled about $17 billion during the program's first three months of operations in 2016, the National Automated Clearing House Association (NACHA) said Jan. 24.
More than 13 million electronic credit transactions, or about 194,000 a day, were made from Sept. 23 to Dec. 31, 2016, averaging $1,283, the association said on its website.
Direct deposits made up the highest number of same-day ACH payments, 52 percent, with 6.8 million transactions, the association said. The transactions, which included emergency payroll and pension payments, totaled $5.9 billion.
Business-to-business payments made up 32 percent of same-day volume, with 4.1 million transactions totaling $8.8 billion.
“In its first three months of operation, same-day ACH has proven that it is a valuable faster payment solution for a variety of users, including businesses, consumers, and financial institutions,” said Janet O. Estep, president and chief executive officer of NACHA.
With the first phase of the three-stage implementation program completed, employers, banks and processors should ensure they are prepared for phase two of the same-day processing program, which starts Sept. 15, the association said.
Same-day payment processing through the automated clearing house was approved May 19 by the association's voting members. The members allowed for same-day processing of virtually any ACH payment, which allows employers, government agencies and consumers to quickly send funds. The members agreed to a three-stage phase in.
The goal of the program is to ease the ability of employers paying employers quickly and to streamline compliance with wage-payment requirements, especially for next-day termination pay. Nine states have requirements to pay discharged employees immediately upon termination, with limited exceptions: California, Colorado, Hawaii, Illinois, Massachusetts, Minnesota, Missouri, Montana and Nevada.To contact the reporter on this story: Michael Trimarchi in Washington at firstname.lastname@example.org.
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)