Data Value Source Notes
Amount of company time employees spend cashing checks 15 minutes per paycheck Assumption Assumption Costs calculated for hourly employees only
Number of checks reissued 0.10% Assumption  
Number of check exceptions per year 7 Assumption  
Average staff time spent researching and clearing a lost/missing check 30 minutes per inquiry Assumption Includes both payee and payroll staff time
Time spent distributing checks 1 minute per paycheck Assumption  
Time spent reconciling bank account 4 hours per month Assumption  
Time spent on escheat processing 8 hours per year Assumption Escheat processing is the requirement to send the proceeds of all uncashed payroll checks to a specified government entity on a periodic basis. The calculator assumes normal processing takes 8 hours in staff time per year.
Time spent mailing checks/statements 2 hours per payroll Assumption  
Mailing costs $0.44 per check Cost of first-class postage  
Cost of check stock $0.10 Typical computer check stock cost  
Cost of payment advice stock $0.10 Same as check stock cost Same cost as check if physically distributed or mailed (typically a voided check)
Cost of envelopes $0.06 Cost of envelopes from a major stationery supply company  
Percentage of annual payroll fraud and duplicate check losses 0.10% Assumption Assumed at 0.1% of total check payrolls
Time spent printing, separating or signing checks per payroll 4 hours per payrol Assumption  
Average check float1 2.75 days Assumption of days to clear a payroll check Assumes Friday payroll with half cashed immediately and the remainder cashed on Monday and Tuesday, with half overall cashed/deposited at corporate bank
Average cost of funds 3.25% Uses Wall Street Journal prime rate as of 1/10/2010