From the February 2008 issue of Ceridian Connection

Printing and distributing paychecks can be an expensive proposition. Some analysts estimate the basic cost of printing and distributing a paycheck to be $2 per check (more, if other payroll services are added). If your company pays 800 employees twice per month, you're paying nearly $40,000 a year just to get your employees paid. And those costs don't begin to take into account bank fees and check fraud.

Today, employers have more payroll management options than ever before. Companies who choose to manage their payroll in-house can pay their employees using printed checks, direct deposits or in some cases debit cards. But for an increasing variety of reasons, it makes sense (and cents) to outsource your payroll to an experienced provider.

Check fraud is on the rise
The American Banking Association estimates that check fraud losses in 2006 reached a record $12.2 billion, up 75 percent from 2003. Most analysts believe check fraud is on the rise and the trend is likely to continue. "Our anecdotal surveys indicate that more and more employers are experiencing check fraud firsthand," comments Scott Wisdom, product manager for Ceridian's Payment Solutions and Print Services. Every year Wisdom meets with numerous payroll professionals. He always asks if anyone has experienced check fraud at their company and he's seeing more and more hands go up. "So much so," Wisdom concludes, "I can safely tell these payroll professionals that the few among them who have not yet experienced check fraud most certainly will. It's only a matter of time."

Financial institutions can help companies set up safeguards against fraud. "The problem is that these safeguards can be cost prohibitive," explains Wisdom. "To have the proper fraud rules in place is expensive. Many employers opt out of paying those fees, which means they're exposed." The simplest, most common form of check fraud is to create a duplicate check. When both checks are cashed, employers who do not have the proper measures in place can lose money. Fortunately, there's a better way.

Partnering with Ceridian ensures safeguards
When employers partner with Ceridian as their payroll provider, they can choose from a variety of payment solutions -- all of which use the latest and most comprehensive measures to safeguard the employer's payroll. Consider Ceridian's Ceridian Check, Direct Deposit and Paycard payment solutions.

"Rapid advances in copier technology have significantly increased the opportunities for printed check fraud," Wisdom explains. Ceridian checks employ some of the latest security features that can make it virtually impossible for someone to duplicate a check. Examples of Ceridian's printed check security features include:

• The check face contains a full chemically sensitive "void" on it. If someone attempts to alter the check using bleach or an ink eradicator, the paper will read "void."
• A laser lock on the face of the check enhances the toner bonding. This makes it more difficult for information to be removed and changed, such as the check's dollar amount.
• The check back contains a fluorescing artificial watermark that cannot be copied or scanned. The watermark can be viewed when held at a 45-degree angle under UV light.
• The check back also uses laid lines (an irregular line pattern) to complicate or make more difficult cutting or altering the check.
• Check backs are treated with yellow thermochromic ink that changes color when heat is applied, either by touching or rubbing.

More progressive companies can avail themselves of more efficient methods of paying their employees. Ceridian's Direct Deposit and Paycard solutions are not only secure, but they provide employers and employees with distinct financial benefits. These include:

• Reducing time and expense.
  Employers who manage their own payroll usually pay bank fees associated with their payroll. With Ceridian's payment solutions, bank fees for payroll payment processing are greatly reduced. Because Ceridian payment solutions provide only one or two offset transactions to an employer's account, this relieves companies from the cost and time spent reconciling individual payroll checks. Ceridian manages the process and provides a monthly report identifying outstanding checks.


• Employee satisfaction.
  Ceridian's suite of payment solutions enables employers to offer their employees payment choices. In addition to traditional paper checks, Ceridian's Direct Deposit and Paycard choices mean employees can avoid bank lines and check cashing expenses. With the Direct Deposit solution, Ceridian ensures employee pay is deposited directly into the employee's bank account. With Ceridian's Paycard solution, employee pay is deposited to a debit card that employees can use in the same way they use a bank's debit card. And the Paycard solution means employees don't need to worry about check cashing fees or the costs associated with maintaining a bank account.

It makes sense to pay your employees with the assistance of an experienced provider such as Ceridian. The dramatic rise in check fraud means companies who process payroll in-house are exposed to financial losses from criminal activity. Partnering with Ceridian not only reduces payroll security issues, but provides employers with the latest security controls and reduced payroll processing time and expense. Ceridian also offers your employees increased payment options that enhance employee satisfaction. To learn more about Ceridian's Payment Solutions, contact your Ceridian representative.