PayrollOrg’s Government Relations Task Force (GRTF) Federal Issues Subcommittee sent a letter to the Federal Deposit Insurance Corporation (FDIC) to bring attention to the risks that bank failures have on payroll processing.
As the FDIC considers how to protect the banked community, payroll professionals need to be part of the conversation. While the reason behind PayrollOrg’s efforts with the FDIC are unfortunate, namely bank failures, introducing payroll professionals to relevant federal government agencies is part of PayrollOrg’s critical mission.
PayrollOrg supports the FDIC’s Options for Deposit Insurance Reform report, released on May 1, with its recommendations to adjust the deposit insurance framework.
From a payroll perspective, PayrollOrg is concerned with both employer and employee bank accounts regarding bank failures and how these failures can interrupt seamless payouts.
The timely processing of payroll is an important aspect of a business’ operations, and it provides employees with the money they need to live, PayrollOrg said. Any interruptions to timely payment of wages can lead to catastrophic financial problems for both employers and employees.
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Adam Prinzo is the Assistant Manager of Government Relations at the APA.
