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 firstclass 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 float^{1} 
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 
