Vendors selling to the Town of North Hempstead will soon to able to receive and spend their paychecks immediately due to a new system which will send payments directly to bank accounts, according to Town Supervisor Judi Bosworth’s office.
The program, which the town is calling the Automated Clearing House, will save money on envelopes, stamps, postage fees, paper checks and online wire payments, Bosworth said in a statement.
“The utilization of the Automated Clearing House is just another way the Town is embracing technology to boost efficiency and save taxpayer money,” she said.
The program, set to begin on Jan. 16, is estimated to save approximately $26,000 a year based on 100 vendors taking advantage of the program. Town officials said the savings would increase as more vendors signed up for the program but said savings ranged from vendor to vendor. The vendors for the Town offer a variety of services, including paper goods and contracted items.
Previously, checks were mailed out every two weeks and would have to be manually deposited, Bosworth said..
“We are pleased to be able to offer this service to our vendors who provide the Town such important services,” she said.
