By Carolyn Cozart on Oct 13, 2011
Did you know the U.S. Department of Treasury stopped issuing paper bonds through traditional payroll savings plans for Federal employees September 30, 2010 and non-Federal Employees effective December 31, 2010? Cost reduction drove these changes to the U.S. Savings Bond Program as well as the long term goal to issue all securities electronically. U.S. Treasury securities are a great way for your employees to invest and save for the future. With these new changes, it is easier than ever to offer this benefit to your employees using the Payroll for North America product. If you, as an employer, are offering this benefit to your employees, there are a few easy steps the employees would need to take:
- Employees will need to open a TreasuryDirect account at www.treasurydirect.gov where they will be provided a TreasuryDirect Account number. The Bank (ABA) Routing number will always be 051736158.
- Employees will create Direct Deposit record in ePay (just as they would for any other banking/financial institution).
- With these changes:
- Employers are no longer the “administrators” of the Savings Bond Program.
- Employers no longer need to hold or accumulate funds towards the purchase price of a security.
- Employers do not have to request the issuance of securities or keep track of registrations.
- Employers can offer a Savings Bond Program with minimal effort.
For more information on this process please see My Oracle Support Document ID 1127539.1.