EMERGENCY AVOIDED: Direct Deposit Problems

I want to start off by saying if you are a TimePays client you have nothing to worry about.

Yesterday a few clients phoned to ask why their direct deposit funds were still in their bank account midday Thursday for a Friday payday?

TimePays clients got very lucky. We at TimePays do not think it was luck, we think YOU WERE SMART to be with us!

On Wednesday 10/23/2019 at 8:30 PM Cachet, one of the largest ACH Clearing Houses in the USA sent an email to all the payroll companies that they move money for. The letter basically said effective immediately, NO DIRECT DEPOSITS will be funded until further notice unless funds are wired to Cachet.

ACH is the FED banking system that is used to electronically move money for tax files, Direct Deposit and numerous other financial transactions. It is pre-funded by float. So in essence direct deposits are paid with unsettled funds every week. If the system is not pre-funded there is no liquidity and NO ONE GETS PAID! ACH clearing houses use large banks to prefund their cash flow. Unfortunately Cachet only had one bank and that bank cut them off so ALL their customers were cut off immediately. This occurred nationally. Right Now, as we write and until further notice 1000’s of employees are not receiving Direct Deposits and their pay is delayed. TimePays used Cachet but we did not go down like other companies.

Alternatively, TimePays has funded every Direct Deposit and tax file to date. Thursday direct deposits were paid a little late but every client and employee got paid on PAYDAY!

How we do it:

TimePays has many redundancy and emergency contingency plans. We had a backup for ACH. Another thing we do is escrow client funds in a local bank, not at the ACH processor. So we control the money at all times. TimePays has the most knowledgeable and competent staff that we know of. Everyone is highly trained and knows WHY they do what we do and the repercussion of what we do. We meet regularly to create and implement controls and procedures to protect our clients (Our most valuable asset) from situations like above.

So, sleep well this weekend, your payroll / HR company is TimePays.

We remain grateful for our planning and that it worked and fortunate to have the great customers we have and that we survived this national situation with minor inconvenience.

If you hear of anyone who suffered disruption in Direct Deposit please refer them to TimePays, we can cure the pain and help. 617-298-1000.

TimePays – The cure for Payroll Pain.

Thank you,

The TimePays Team