Businesses to benefit from federal direct deposits
(NC)—The federal government is urging businesses to enrol in its direct deposit program as Canada continues to move away from paper cheques and into electronic payments. In 2012-2013, there were a total of 272 million payments made, 5.3 million of which were made to businesses for accounts payable, Canada Revenue Agency business payments and the Canada Job Strategy.
Canadian firms already capitalize on electronic banking and bill paying as a fast, efficient and cost- effective way to stay on top of their business and meet the needs of their clients so enrolling in the federal direct deposit program is a next logical step. It will ensure fast, secure, hassle-free payment of invoices, GST/HST rebates and tax refunds.
Not only businesses, but all Canadians can take advantage of direct deposit – whether they're students counting on Canada Student Loans, parents looking for the Child Tax Benefit, unemployed workers waiting for Employment Insurance benefits or seniors who rely on their monthly Canada Pension Plan payments.
Direct deposit is also virtually risk-free since there's no chance of a payment being lost, stolen or damaged as cheques sometimes are. Rather than waiting for cheques to be issued, businesses can receive their payments faster and more securely once the initial set up for electronic banking is in place. Businesses can also issue remittance details by e-mail for accounts payable.
Individuals and businesses can choose to wait for the direct deposit deadline for registration but given the option of accessing money sooner and a lot more conveniently, the benefits of enrolling in direct deposit are clear. If further incentive is needed, Canadian businesses that enlist can take pride in being good corporate citizens, since electronic payments reduce paper consumption and greenhouse gas emissions. Switching to direct deposit is as good for the environment as it is for the bottom line.
Direct deposit will generate savings of about $17.4 million per year starting in 2014–15.
To enrol, simply contact the federal department you do business with and they will provide you with a direct deposit enrolment form that takes only minutes to complete.
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