SOURCE: Small Business Technology Institute

September 05, 2007 06:00 ET

SBTI Study Forecasts Increased Adoption of Payroll Direct Deposit by Small Businesses Seeking Simpler, More Streamlined Payroll Options

SAN JOSE, CA and PALO ALTO, CA--(Marketwire - September 5, 2007) - A new study of United States small businesses by the non-profit Small Business Technology Institute and sponsored by PayCycle, Inc. reveals that entrepreneurs are consistently looking to streamline the task of managing payroll, while keeping associated costs low. Specifically, the findings show that a majority of small business owners prefer to offer direct deposit of paychecks for their employees, assuming there are no incremental costs associated with the service.

Among the significant trends uncovered in this report focusing on small employers with more than 10 employees:

--  69% of those not using direct deposit have considered switching to
    that option during the past year;
--  89% of those not using direct deposit have received from employees, in
    the last twelve months, one or more requests to provide such option.
--  57% of those surveyed indicated they would switch their payroll
    solution if  direct deposit were a free option
    

"The small businesses we surveyed are clearly in need of better, low-cost solutions for managing paychecks. They consider direct deposit a positive alternative and, based on these results, we expect to see more small businesses offering their employees direct deposit options in the future," said Andrea Peiro, CEO and practice director of Market Intelligence for the Small Business Technology Institute.

"Direct deposit of paychecks is a convenience benefit that employees at large employers often enjoy. Now, this study makes it clear that employees and employers at small businesses also prefer direct deposit. With PayCycle, direct deposit has always been included in our flat fee pricing. Our online delivery model makes direct deposit easier than writing checks," said Tanya Roberts, vice president of marketing for PayCycle.

The report explores the current and planned ways small employers handle pay days, including payment options and attitude towards fees and overhead. Read and download the entire free report at http://www.sbtechnologymagazine.org/snap.

About Snap Insight Research

Snap Insight is a sponsored research service that delivers concise, comprehensive knowledge on the adoption and use of information technology among small businesses. Snap Insight provides sponsors with a fast, low-cost way to generate outstanding market knowledge, media interest and leveraged advertising exposure in a market comprised of more 20 million users and worth over $40 billion per year in technology spending. To sponsor an upcoming report, visit http://www.sbtechnologymagazine.org/snap.

About PayCycle

PayCycle, America's #1 online payroll service, is on a mission to make payroll so easy that PayCycle will become the online payroll standard for very small businesses. PayCycle's unique "Do-It-With-You(SM)" (DIWY(SM)) technology platform guides customers through the entire payroll process from paychecks to W-2s. By integrating with the leading small business accounting packages such as Microsoft® Money Home & Business, QuickBooks®, QuickBooks Online and QuickBooks for Mac, PayCycle eliminates the hassle of data re-entry. PayCycle is committed to providing outstanding customer service and is a proud finalist for the 2007 American Business "Stevie" award for "Most Innovative Company" and "Best Customer Service Organization." Founded in 1999, PayCycle has received more awards and recognition than any other online payroll service.

PayCycle is a registered trademark, and "Do-It-With-You" and "DIWY" are service marks of PayCycle, Inc. All other product names and trademarks are the property of their respective owners.

Contact Information

  • Media contacts:

    Andrea Peiro
    Small Business Technology Institute
    408-494-0212
    Email Contact

    Julie McHenry
    Communications Insight, LLC for PayCycle
    Email Contact
    650-347-1333