Paperless benefit deposits could save U.S. government $1B in 10 years

As more businesses nationwide consider the benefits of paper office solutions, one major government agency is pursuing a digital strategy that would overhaul the way federal benefits recipients are paid.

Individuals who qualify for Social Security, Supplemental Security Income and other types of federal benefits typically received a monthly paper check. That will no longer be the case starting March 1, which is the deadline by which recipients must choose to switch to direct deposit or receive a pre-loaded debit card for their payments.

The switchover has been in the works for some time – legislation to make the change was nailed down in December 2010. Individuals who started receiving benefits after May 1, 2011 were automatically placed on the digital system, and the U.S. Department of the Treasury reports that 93 percent of benefit┬árecipients are already receiving their money electronically. Even so, transitioning the remaining 7 percent to a new system would save the government – and American taxpayers – up to $1 billion over the next 10 years, according to the department.

“Choosing direct deposit or the Direct Express card makes it easier, safer and more convenient for beneficiaries to receive their payments. Switching to an electronic payment is not optional – it’s the law,” said David Lebryk, commissioner of the Treasury Department’s Financial Management Service.

Benefits recipients can call 1-800-333-1795 or visit www.GoDirect.org to make the switch.

Digitization is sought by more businesses and government agencies for its convenience, security and financial savings. At a time when the federal government is struggling to address deep budget concerns, the economic benefits of effective electronic document management cannot be ignored. Reliable software for document scanning can offer business owners the tools needed to consolidate paper records and digitize crucial information.

Comments

Powered by Facebook Comments

No related posts.