Detroit Public Schools says it's saving $100K by not printing pay statements

District employees still able to print direct deposit, pay information online

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DETROIT - Detroit Public Schools said Tuesday it had stopped printing pay statements for employees with direct deposit, a move that will save them $137,189.61 annually.

In a statement, the district said employees will be able to print their own paycheck information online if they need it.

"Eliminating pay advices leads to several methods of annual cost savings for the district," said DPS Emergency Financial Manager Roy Roberts. "We will begin to see a savings in stock and printing, postage for mailing out the pay advices to employees, and being able to better utilize resources where staff members are no longer required to distribute pay advices." 

The annual savings for the district includes the cost of pay advice stock, totaling $14,710.79; postage to mail pay advices to employees, $13,954.65; distribution of pay advices to each worksite across the district, $96,187.39; and Office of Payroll staff efforts involving sorting, filing, and pay advice distribution, $12,336.78, for a combined total of $137,189.61 annually.

The elimination of pay statements is also the first step in implementing a new Pay Card program, tentatively scheduled to launch in the fall of 2013. The district is exploring the option of issuing Pay Cards, similar to debit cards, for employees who do not have direct deposit. This is also a cost-savings measure for the reconciliation of unclaimed funds.

The Pay Card would serve as an electronic bank account where an employee's pay is placed on the card if that employee does not already have a bank account with direct deposit. The district has not yet selected a vendor for this service.

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