7 Tips for Safe Social Networking

Written by: Jill Henderson, Cachet Marketing Manager

People, particularly parents, are well aware of the dangers of social networking in terms of personal attacks but with Social Networking becoming more and more prevalent in both our business and personal lives, its more important than ever to protect yourself against all types of cyber criminals. The following tips are great ways to minimize your risk exposure online:

1. Password protection - Use a different password for social networking sites then you do for your email and financial accounts. Also, change your passwords frequently and do not use names or numbers (such as birthdays) within your passwords that are publicly posted on your social networking profiles.
2. Following and Friending - Be selective in who you connect to. Connecting with strangers on social networks is absolutely unnecessary in a personal arena but in business making contacts and expanding your referral network is important. Consider only connecting with people you know, friends of friends/colleagues, people who work within your same industry or who share similar hobbies. Anyone can misrepresent themselves online but being selective about who you connect to can help limit the threats to your accounts and personal information.
3. Links - Don't click on suspicious status updates, articles or links. If your Great Uncle who only listens to Frank and the rest of the Rat Pack, starts tweeting about Justin Beiber... he's probably been hacked, don't perpetuate the security breach by clicking and risking your accounts as well.
4. Oops! I Clicked - If you must (or accidentally) click on your "Great Uncle's" Justin Beiber tweet and it takes you to another page asking for personal information or passwords, do not provide the information!
5. Privacy Settings - Make sure that you set your privacy settings when creating your social networking profiles and update them regularly. Social media sites are constantly adding and changing security and sharing features, checking your settings regularly will allow you to share or hide personal information at a level that is comfortable for you.
6. Security Software - Make sure the security software on your computer and handheld devices is up to date.
7. Checking In - Publicly posting your location or weekend/vacation plans can open you or your home up to criminal attacks. If you're going on vacation and you are excited to tell your friends and family all about it, consider waiting until you return from your vacation or limit the people who can see that particular post... otherwise you could arrive home to an empty house. Do you have a "crazy" ex that you want to stay away from? Checking In around town lets them know where you are; if you don't want people to find you, don't tell them where you are.

Email Security and Phishing

Written by: Nixon Adoyo, PTM Tax Client Services Manager

Phishing perpetrators continue unrelenting assault on businesses in a bid to illegally gain access to extract data from companies so they can further their criminal activities. The Payroll Service Industry seems to be dealing with a new barrage of attacks that have continuously evolved and progressed in sophistication in an attempt to fool unsuspecting organizations into granting access to vital data.

Attackers seem to be stepping outside known “bait” methods or email formats that could easily be identified and flagged by using email addresses and domain names that mimic known and respected organizations like the IRS, NACHA, BBB and even USPS.

Earlier this year, the Electronic Payments Association received reports that companies and individuals were receiving fraudulent emails that appeared to have been sent from National Automated Clearing House Association (NACHA). Reported emails were sent to unsuspecting individuals and organizations advising of electronic payments that had been rejected, flagged or blocked by the Clearing House Association.

Instructions in these emails advised recipients to open attachments for more details on mentioned blocked transactions. Once the email or attachments were opened, Malware attached to the emails infected victims systems successfully completing intended task.

National Automated Clearing House Association (NACHA) released an alert in March 2011 advising organizations of the phishing emails in an excerpt taken from their website citing, they were aware of emails varying in content that appeared to be transmitted from email addresses associated with the NACHA domain (@nacha.org). These emails later began listing addresses with fictitious names of NACHA employees and or departments as shown in this example. (jdoe@nacha.org)

The notification went on to clarify that NACHA itself does not process or touch ACH transactions that flow to and from organizations and financial institutions. NACHA also does not send communications to persons or organizations about individual ACH transactions that they originate or receive. While Payroll Tax Management notified clients about these emails, complete details are available on NACHA's website.

The Internal Revenue Service and the Federal Deposit Insurance Corporation have also released publications on their websites about phishing emails created to seem like they come from their domains and have detailed nature of emails and how to identify, contain and report problem.

So far names of the following organizations have been used in these phishing scams.

• BBB - Better Business Bureau
• FDIC - Federal Deposit Insurance Corporation
• IRS - Internal Revenue Service
• NACHA - National Automated Clearing House Association
• USPS - United States Postal Service

To protect our internal assets and client data, Payroll Tax Management (PTM) employs security software programs to monitor its system and to identify unauthorized attempts to upload or alter information. Emails procedures and training is done to equip employees with the ability to identify phishing emails. The importance of training is making everyone aware of these ever evolving phishing attacks along with better understanding of how all organizations we transact with communicate. With this knowledge it becomes that much easier for everyone to help flag suspect communication methods.

Payroll Tax Management has also implemented policies and procedures that have helped identify emails that may not have been flagged as spam but appear suspect. Continuous education and communication to employees has helped defeat these attacks. Employees are constantly aware that suspect emails with attachments and/or links to Web pages host malicious code and software. For this reason, they do not open attachments or follow Web links in unsolicited emails from unknown parties or from parties with whom they do not normally communicate.

Forwarded emails from known parties that seem suspicious or otherwise unusual are also handled the same way and verification of the messages is done first by contacting sending party by phone before actually opening. Learning about organizations that handle our transactions and their methods of communication also helps identify these fraudulent emails. The IRS and other prominent organization like NACHA or FDIC state they do not send or solicit information by email.
We hope this information helps our clients and partners protect their systems from these attacks.

Ancillary Services Education at the PASA D.R.I.V.E. Conference

Written by: David Taub, PTM Regional Manager - California

Although I’ve been in the payroll industry for nearly four years, I haven't had the opportunity to attend a national organization conference as unique as PASA's D.R.I.V.E. Conference. Payroll Tax Management, Inc. (PTM) is very involved in the payroll conference circuit and with the Payroll Ancillary Service Association (PASA).

PASA is a new organization that focuses on educating service bureaus on best practices for implementing and up selling ancillary services to their end user clients in an effort to improve their overall service offering, increase client retention, and ultimately to better compete with the larger national payroll companies. The ancillary services represented at the PASA D.R.I.V.E. Conference included payroll software, time and attendance, HR, payroll tax processing, tax applications, retirement/401(k) services, recruiting, insurance and ACH processing. The D.R.I.V.E. Conference was PASA's second conference and while relatively small it still drew quite a few thought leaders within the payroll service industry allowing attendees and vendors, such as myself, to enjoy intimate discussions about best practices for selling and implementing ancillary services within a payroll service organization.

The D.R.I.V.E. Conference was well organized and included an insightful keynote speaker, Tom Batchelder, who spoke about ways to avoid "Barking Up... a Dead Horse" and ultimately wasting time and effort in the payroll sales world. We also had the opportunity to participate in a “speed learning” seminar in which attendees visited each ancillary service provider for a crash course in selling and/or implementing their particular ancillary product into the payroll sales process, including tips to increase revenues for service bureau owners and commissions for the sales representatives. The conference also included an Ancillary Services Panel Discussion which covered best practices within various organizations for implementing ancillary services, incentivizing the sales/operational staff to up sell new and existing clients, and ways to improve the "stickiness" of a client by expanding the ancillary services that they are using. The Q&A session within the panel really got the attendees involved and a lot of great ideas were shared.

My first PASA experience was a huge success; I was able to meet a lot of outstanding colleagues who will be valuable resources within the industry. I felt that the information provided to the attendees was relevant and well received. I am looking forward to attending my next conference with PTM early next year.

5 Simple Tips for a Breezy Implementation

Written by: Windy Jones, PTM Client Liaison

Considering new payroll tax filing services? Here are some simple suggestions that will improve your transition;

1. Don’t be afraid to ask. If you have any questions or concerns with the terms of your contract or pricing, resolve them during the sales process. Companies want to provide you with a service they can perform and don’t want you feeling deceived. If you have any questions, ask away and make an educated decision before signing. Also, there may be additional ancillary services available that would benefit your company, but if you don't ask you may not know they are available. Once in the implementation process, again, do not be afraid to ask. Procrastinating because you don’t understand a document or procedure does not resolve your confusion. Ask your questions and keep moving forward. 
2. Allow yourself ample time. None of us have “free time” in our workday, any time we have is scheduled and blocked off for a specific activity. Just as you would set aside 1 hour for a conference call, set aside time to work on your implementation items and training well before you need to start processing. By preparing early, you will save yourself stress and worry down the road.
3. Take the time to get your data right. Quite often a new payroll tax provider will ask for an apple but will be given an orange. True, they are both fruit, but one does not satisfy the other. For example, when asked to provide a sample payroll tax file, people will take the time to gather and compile payroll tax forms and reports. Although these do contain some of the data, they are not the same as what is contained in a payroll tax file. By simply asking your IT department to assist you with the proper file, you can save yourself time and company resources.
4. Train your staff. When implementing new payroll tax software, make sure all staff are on the same page. If possible, have all staff that will be using the system on the training at the same time. You will get the perspective of everyone involved and all questions answered at once.
5. When in doubt, ask before acting. A new system may have subtle differences from in-house tax processing or the payroll tax systems you are familiar with. If you are not sure, it is better to ask than have a messy backtrack and clean up. Save yourself time and headaches by getting it right the first time.

Following these five simple tips may seem like common sense, but are all too often needed. They will not take you extra time, but will rather save you a lot of time in the long run.

How to Achieve Great Client Survey Response Rates

Written by: Summer E. Poletti, Cachet/PTM Director of Client Relations

The PTM/Cachet Client Relations Department conducts online client satisfaction surveys every year and continues to enjoy a 60 to 98% response rate. That’s right, up to 98% response rate on an online survey!

Over the years, we have done tons of research and have found that most advice for online surveys is intended for a B2C audience. It took a lot of fine-tuning, but we have come up with tried and true methods that are specifically tailored to monitor payroll and payroll tax filing services.

Incentives – Payroll professionals are always busy, so give them a reason to spend some of their precious time filling out your survey. We have tried both a drawing for a big prize and small incentives given just for filling out the survey. Hands down, the small incentive works the best. Perhaps it’s a desire for instant gratification or that deep down feeling that we’re unlucky and probably won’t win. In any event, giving a client a credit on an upcoming invoice just for filling out the survey will do wonders for your response rates.

Freshness – You need to monitor feedback on your payroll, tax filing and ancillary services at least annually, but don't fall into the trap of asking the same questions each time. People will get sick of answering them. Review your survey each time and decide if you still need information on all of those topics. Re-work the survey as needed so it will not become stale and boring.

Length – Again, payroll professionals are busy, so keep it short. Only ask questions that are necessary to gauge performance and improve payroll, tax and ancillary services. Ask as few questions as you can get away with, make as many multiple choice responses as possible and leave comment boxes optional.

Read – This seems to go without saying, but it seems as though many surveys are used only to generate stats to post bragging rights about payroll and payroll tax filing services on the company’s Web site or to use the stats to evaluate employee performance. Take the time to read the responses; they give great information about clients who might be less than satisfied, who might be better fit for a different product you offer, etc.

Follow up – Again, this one seems to go without saying as well, but some people feel that surveys are just a waste of their time and will not fill it out regardless of whether or not you offer an incentive. You will have to earn their trust here. After you have read the survey responses, immediately follow up with any unsatisfied clients and thank them for their feedback (see our blog post on 5 Things Clients Love to Hear). Forward information to Sales when a client’s response leads you to believe he may be a better fit for another one of your other products or if the client may benefit from one or more of your ancillary services. Follow up regularly with unsatisfied clients until you feel as though the account has been turned around and the client is once again a fan. Follow up with clients if you implemented a suggestion they made (again, see our blog post on 5 Things Client Love to Hear). If your clients realize you are using their responses to actually improve your service, they will fill out your survey year after year.

Relationship-Oriented Service – You are likely to get better response rates from your clients if you interact with them more than just once a year. Don’t wait for them to call you, pick up the phone every once in a while and call them “just because”. (See blog post on 5 things clients love to hear).

Client Satisfaction Surveys can either be a nuisance to everyone involved or a great tool you can use to improve your services on a regular basis. It’s all in the way you manage the survey process!

The American Jobs Act of 2011

Written by: Patricia DeKeyzer, PTM Marketing Coordinator

President Barack Obama on September 12, 2011 spoke to the Congress of the United States stating, "Today, I am pleased to submit to the Congress the enclosed legislative proposal, the "American Jobs Act of 2011," together with a section-by-section analysis of the legislation.

The purpose of the American Jobs Act of 2011 is simple; put people back to work and put more money in the pockets of working Americans, which is great for us in the payroll and payroll tax processing industries! More people working means more payrolls and more payroll tax processing.

It will provide a tax cut for small businesses, to help them hire and expand; plus an additional tax cut to any business that hires or increases wages. This Act should put more money in the pockets of working and middle class Americans by cutting in half the payroll tax taken from paychecks. The typical savings will be an average of $1,500 a year.

Unemployment benefits will be extended to help those out of work support their families while looking for employment. While training programs will be structured to build real skills that will help the unemployed have real jobs. A new tax credit will be provided to employers hiring workers who have been unemployed for over 6 months. For our low-income youth and adults it will expand job opportunities through a new Pathways Back to Work Fund.

The Pathways Back to Work Fund is summarized as;

• Summer and year-round jobs for youth.
• Subsidized employment opportunities for low-income individuals.
• Local efforts to implement promising work-based strategies and provide training opportunities.

The President talked about the very real danger that could happen from the economic situation in Europe that may further jeopardize our own economic recovery;

“This is not a game; this is not the time for the usual political gridlock. The problems Europe is having today could have a very real effect on our economy at a time when it’s already fragile. But this jobs bill can help guard against another downturn if the situation in Europe gets any worse. It will boost economic growth; it will put people back to work. And by the way, this is not just my belief. This is what independent economists have said — not politicians, not just people in my administration. Independent experts who do this for a living have said this jobs bill will have a significant effect for our economy and for middle-class families all across America. And what these independent experts have also said is that if we don’t act, the opposite will be true. There will be fewer jobs; there will be weaker growth.”

The Senate plans to vote next week, the week of October 10th, on the $447 billion jobs bill. The American Jobs Act is made up of the kind of ideas that both Republicans and Democrats have supported in the past.

Prominent, independent experts have confirmed that the American Jobs Act will materially improve economic growth and employment next year.

The American Jobs Act of 2011 if fully paid for, includes specific offsets to close corporate tax loopholes and asks the wealthiest Americans to pay their fair share that more than cover the cost of the jobs measures.

President Barack Obama spoke at a press conference in the East Room of the White House, Oct. 6, 2011, about the upcoming Senate vote on his plan, American Jobs Act, that is designed to put people back to work and put more money in the pockets of working Americans.

Social Media: B2B Marketing in a B2C World

Written By: Summer E. Poletti, Director of Client Relations

LinkedIn, Twitter and Facebook are great tools for promoting brand awareness, increasing online presence, interacting with current and potential clients and marketing services, but it can be a challenge to market B2B services in a consumer environment. We conducted research for almost two years prior to launching Cachet's Social Media Marketing campaign. While there has been plenty of advice written on social media marketing for businesses, we found that once again, there was nothing written that was tailored even remotely to companies offering payroll and ACH processing services.

We have a unique industry with unique needs and we built a social media marketing campaign that is sensitive to those needs and the "small world" that is the financial services industry.

When starting or running your own social media marketing campaign, while not necessarily exclusive to the ACH or payroll industry, the following are a few keys things you should keep in mind for your B2B Social Media Marketing.

Follow your competitors. It may seem a little crazy, but don't you want to keep tabs on what they are doing? Maybe they will share new products or ideas that you need to know in order to remain competitive. They may Tweet tidbits that are not listed on their Web site.

• Are they offering new ancillary services?
• Do they process garnishment payments?
• Are they offering online payroll tax processing services?
• Are they processing corporate financing?

You may never know unless you follow their online conversations.

Watch how you interact with competitors. In reference to the above, you want to keep tabs on them, but do you want to help promote their business or increase their online presence? I didn't think so. Prior to starting your Social Media Marketing campaign, be sure you have a well defined plan as to how you will interact with competitors online. Please be sure to consider not only your direct competitors, but competitors of your alliance partners, vendors and clients.

Don't give too much information. You want to give your prospects and clients enough information about your products and services to keep them interested. However, please remember that (in reference to the above) your competitors are probably following you. Don't give away your secrets!

Keep it professional. This goes without saying for any business, but it is so much more important in the payroll industry. We are, after all, asking that people entrust us with very sensitive financial matters and data. We want people to know and believe that when we draft their account we will, in fact, calculate the employee payroll and taxes correctly, and remit Federal and State payroll taxes timely. No one will trust you if you tweet like a 15-year old. It can be a challenge on Twitter, with only 140 characters, but try to keep grammar at its best whenever possible. If your post is too long, consider writing a blog about it or posting it on Facebook or LinkedIn.

Try not to follow significantly more people than follow you. Facebook and Twitter remind me of high school and unfortunately no one is going to want to follow you or "Like" your page if you are unpopular online. People will wonder if you're tweeting at all, if you are giving good information or just posting shamelessly self-promotional items. Follow all the people you need in order to stay up-to-date on all the industry news, but try to have a balanced profile.

Don't be a Spammer. Everyone knows that every social media campaign is meant to increase online presence and drive more sales but payroll professionals are very busy and are not going to take time for your posts if all you do is tweet or post about your services. Bring added value to the table to keep your followers interested, Tweet on topics that will educate your clients, such as;

• New requirements for payroll tax forms
• New agency requirements that will affect employee payroll and taxes
• New laws that will affect payroll tax withholding and calculation
• New payroll or tax software updates
• Schedule updates for agency payroll tax deposits
• Other useful payroll and tax compliance updates

Show your clients and prospects that you are an expert in your industry and a great source of information protecting them from needless penalties and interest. They will choose you over your competitor who only tweets about how awesome he is or why you should buy his products and services.

5 Reasons to Offer Direct Deposit

Written by: Patricia DeKeyzer, Marketing Coordinator

As a payroll professional, you are on the front line of your company's ancillary services offering and play a key role in helping your organization and payroll clients understand the benefits of implementing ancillary services such as direct deposit. Below are five reasons to keep direct deposit in mind as one of your main ancillary service offerings.

Five Reasons to Offer Direct Deposit

1. Improved Payroll Performance. You are offering a valuable benefit and the entire payroll operation can be improved. Direct Deposit eliminates stop payments and adjustments of payroll and bank records. For companies servicing a large geographic area direct deposit ensures timely payroll delivery. Direct deopsit helps to streamline operations, your clients and their employees do not have to worry about lost or stolen paychecks.

2. Business Continuity / Disaster Recovery. We have seen on the news all the recent disasters across the United States and the world. A direct deposit program can ensure payment to your clients and their employees on time. Direct Deposit provides the employee access to their funds on time from anywhere.

3. Cost Savings for the Company. A direct deposit system can also be a cost saver for most companies. This amount will vary between companies and can be hard to measure. This will take initial research and modification could be required. Be sure to include all costs of planning, design and implementation. 

4. Float Loss. While some companies have been reluctant to move to direct deposit due to concerns related to lost float on payroll funds, those that have blazed the trail have experienced quite the opposite. Employers can save up to $1.25 per paycheck, offsetting any lost "float", according to NACHA studies. The U.S. government reports that it saves 41 cents with every direct deposit. 

5. Increased Service to Employees. The payroll office serves as a liaison between employees and employers. This occasionally requires you, as a payroll professional, to oversee the interests of both parties. Therefore, in providing an additional benefit to the employee, as well as reducing operating costs, the payroll office has met its obligation. As the payroll professional in your company, you can promote direct deposit as an employee benefit. Employees no longer will need to use personal time to make a trip to the bank. In addition, funds are available on payday. Even when your employees are sick or on vacation, they can be secure in the knowledge that their money is deposited safely into their accounts. An employee is not always limited to just one bank account either, depending on the employer's payroll system, employees may be able to deposit funds into several accounts, including both savings and checking vehicles.

Source: 2011 APA Guide to Successful Electronic Payments

NACHA Changes

The National Automated Clearing House Association (NACHA) announced the following changes effective September 16, 2011 

Collection of return fees: This change establishes the authorization and identification requirements for ACH debits used to collect return fees for certain checks and ACH debits that have been returned for insufficient or uncollected funds. The new rule addresses when return fees can be assessed under NACHA Rules; authorization requirements; timing of assessing fees; number of fees that can be assessed and other aspects.

Recurring TEL transactions: This rule is being expanded to allow greater use of the TEL (Telephone Initiated-Entry) SEC (Standard Entry Class) code and provide additional payment options for originators and receivers. Prior to September 16, 2011 only a one-time ACH can be made with a phone authorization. This change will allow recurring payments to be collected via ACH, at a lower cost to the originator. Note: This rule change is for existing client relationships or consumer-initiated phone calls.

Enhancements to the ACH Applications

1. The scope of the TEL (Telephone Initiated-Entry) application will be expanded to permit its use for recurring consumer transactions.

2. Authorization and identification requirements for ACH debits used to collect return fees for certain checks and ACH debits that have been returned for insufficient or uncollected funds will be established.

3. The scope of the XCK Application (Destroyed Check Entry) will be expanded to permit its use for certain damaged checks that cannot be imaged or other check images that cannot be processed
. 
Potential Pain Points in the Rules
The scope of the annual rules compliance audit requirements were expanded to require Third-Party Senders to conduct audits to the extent that they perform any functions of an ODFI (Originating Depository Financial Institution) under the Rules.

1. Obsolete language concerning the transmission and availability of entries on days that are not banking days for both the transmitting and receiving ACH Operator and financial institution was removed.

2. Current industry practices regarding the timely return of a credit entry returned to an RDFI by its customer were codified.

3. Specific conditions under which an ODFI may dishonor a return entry and the specific conditions under which an RDFI may contest and/or correct such a dishonor were clarified.

4. Outdated language regarding warranties and liabilities of associations from the Rules was removed.

5. A provision from the rules compliance audit language related to return entries for which no corresponding rule exists was removed.

According to NACHA a rule amendment will address inconsistencies regarding the inclusion (or lack thereof) of revocation language in authorizations for single-entry transactions, and require such revocation language to be included for single entries that are scheduled in advance. Contact PTM's sister company, Cachet, for more information on how these changes affect your payroll service bureau. www.cachetbanq.com