Online Payroll Processing from Banks? A New Idea

I saw the other day that some banks are beginning to offer a new service to their small business clients: Online payroll processing. The largest of these banks offering this service is Bank of America. They offer two levels of service, with state payroll taxes and 1099s in the "plus" service. It looks like this service is free if all employees direct deposit into a BofA account. If you use one of the larger banks, check to see if they also offer this service. Banks have to be very competitive with their services, so I would guess most of the larger banks will be offering this service in the near future.