June 15, 2010
Uncle Sam To Phase Out Paper Checks
If you’re looking for your unemployment or social security check, don’t bother waiting by the mailbox. Your check won’t be in there. That’s because the government will now pay consumers electronically via direct deposit instead of paper check for all benefits payments.
The changes, which are expected to begin next March, have come about in an attempt by the Department of the Treasury to eliminate wasteful practices, save money, and modernize government. The Department of the Treasury estimates that it will save $300 million during the first five years and more than $120 million each year after that.
While government payments such as unemployment and social security will be sent electronically to your bank account, this new system will not apply to payments from the IRS. If you don’t have a bank account or you don’t want direct deposit, you still have options. You’ll be able to receive payments through the Treasury Department’s Direct Express debit card.
For more information, visit the Office of Management and Budget Website.
Sheiresa Ngo is the consumer affairs editor at Black Enterprise.