The end of an era is coming soon. In less than two years, paper checks will cease to exist for those receiving any form of Social Security, including Social Security Disability and Supplemental Security Income benefit checks.
Currently, nearly 11 million people receive Social Security payments by check. And, it may come as a surprise, but it costs nearly $1 dollar more to issue a paper check than it does to electronically deposit money. Assuming each individual gets a check every month...well, it's clear to see that the price to send said checks might add up really quick.
So, what does this mean for those who are collecting Social Security Disability or Supplemental Security Income benefits? It means that anyone applying for such benefits must plan on receiving them through direct electronic payment-such as direct deposit. Like we mentioned last week in our In The News post, the Social Security Administration is taking big steps to cut costs. Switching over to electronic Social Security checks will help save nearly $1 billion dollars over a span of ten years. The Treasury Department has indicated, for instance, that approximately $6.9 million dollars would be saved in just one year, if everyone receiving payments in the state of Texas signed up to receive their payments electronically.
Aside from the government saving some much-needed money, this change will also benefit those receiving payments. The number of paper checks that are reported missing or stolen even year totals over half a million. Electronic payments will almost guarantee that one's payment cannot be misplaced, sent to the wrong address, ruined in the rain, or eaten by the dog.
If you're a current or former client of Binder and Binder® receiving paper checks and would like to switch over to electronic checks, just let us know! We'd be happy to help you with the transition.