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