Payroll Deduction

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When an employer or manager offers payroll deduction to the staff at his/her firm, each staff member has the opportunity to have savings deposits or loan payments deducted from his/her check and sent to Funeral Service Credit Union in the firm payroll deduction check which has the funds for all staff members who are participating in the program. A payroll deduction makes using the credit union very convenient.

The entire funeral home staff is eligible to participate—licensed funeral directors, office personnel, prearrangement and aftercare counselors, maintenance, part time staff and support staff such as beauticians and musicians.

The opportunity to belong to a credit union is a benefit that employees will value. Payroll deduction gives the staff the opportunity to save at excellent rates and to borrow at very competitive rates. This employee benefit is available at no cost to the owner or manager!

Payroll deduction gives your staff an easy, convenient way to save and to make loan payments at the credit union, again, at virtually no cost to the firm. The staff will thank you for making this service available to them.

The advantages are that it provides staff members with a convenient, constant means to save and an easy way to make loan payments.

The Christmas Club which allows members to make deposits in any amount at any time during the year and to receive the check for those deposits in early November is very popular.

The Vacation Club also offers members the opportunity to make deposits in any amount during the year and to receive a check in early May for summer travel and activities.

In addition, members can make regular deposits into a savings account and transfer the funds to a certificate of deposit when the account balance reaches $1,000 or more.

How Does An Employer or Manager Establish a Payroll Deduction Plan?

  • Arrange for the Payroll Department to Process Payroll Deduction Each Pay Period.
  • Make necessary arrangements for your payroll clerk or payroll department to handle the program. This means that each pay period, the payroll clerk will prepare a check to Funeral Service Credit Union for the amount of funds which employees have elected to deduct.

    One check for the total amount of the staff deductions along with a list of employees' names and the amounts they are depositing is sent to the credit union.

    Firms may also arrange to have the funds transferred electronically to the credit union each payroll period from the firm's account at the bank.

  • Distribute Forms to Staff.
  • Give each employee a Funeral Homes Credit Union Membership Packet and a payroll deduction form.

  • Staff Complete Forms and Return to Payroll Department.
  • Each staff member who wishes to participate completes his/her payroll deduction card. The employee lists the total amount to be deducted and how it is to be distributed. For example, a staff member could have a deduction totalling $50 with $25 deposited into passbook and $25 deposited into Christmas Club.

  • Payroll Deduction Authorization Cards.
  • After the employee completes the payroll deduction card, the payroll department processes the cards. The payroll department will: send the white copy to the credit union with the check; give the yellow copy to the employee; keep the pink copy for payroll records.

  • Individual Accounts are Opened at the Credit Union.
  • The credit union establishes an individual account for each participating staff member.

  • Payroll Check Received and Funds are Posted.
  • When a payroll check is received, the credit union staff posts the funds to each individual account.

  • Individual Receipts are Mailed to Each Staff Member.
  • After the funds have been deposited to each account, the computer prints individual receipts. These receipts ar mailed to each employee individually. The employee who deposited $25 in passbook and $25 in Christmas Club will recieve a receipt for each of these deposits.

  • Changes.
  • When an employee wishes to make changes in his/her payroll deduction, the employee completes a new payroll deduction authorization card and files it with the firm's payroll department.

    The department makes the necessary changes in the amount on the check and gives the appropriate copies of the payroll deduction card to the credit union, the employee and the payroll department.

  • Adding New Staff Members to Payroll Deduction.
  • New staff members may participate in payroll deduction as soon as they begin employment. The credit union will provide materials to be given to new staff members.

  • No Waiting Period for Membership and Loans
  • A staff member may join the credit union by depositing $25, one share required for membership, in a savings account and apply for a loan at the same time he/she joins the credit union.

  • Suggested Guidelines
  • For record keeping simplicity, some firms establish a guideline that employees must use the same deduction amount for each pay period.

    If an employee is paid twice a month and has a loan, he/she would have one half of the payment deducted each pay period. If the pay period is weekly, the employee would have one fourth of the payment deducted each pay period.

    Members may make deposits in savings accounts in any amount. The credit union suggests a minimum deposit of $5 per account per pay period. A member could deposit $5 in savings, $5 in Christmas and $5 in vacation.

    Naturally, larger deposits per pay period are welcomed. However, the credit union encourages staff members participation, and often members wish to begin with a small amount and then increase it.

  • Materials for the Payroll Deduction Program.
  • The credit union will provide membership packets and payroll deduction cards and other credit union materials such as loan applications for the firm to keep on hand so that employees have convenient access to credit union materials.

  • Questions or Help in Establishing a Payroll Deduction Program.
  • The staff will be glad to discuss your individual questions and help you establish your payroll deduction program. Call the credit union toll-free 1-866-701-3728 (toll free) to request supplies and ask questions.

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