Bank Direct Deposits Payroll | HR Payroll System online in India

Key things to know about bank direct deposits

How do you pay salaries to your employees? There are several options to choose such as cash, cheque, electronic transfer and bank direct deposits etc. It is important to know which payment option is suitable for you. There are many benefits in choosing bank direct deposit over other payment options. It is a safe and hassle-free way to do employee salary payments. The only thing every employee must have a savings or checking account with the bank. There are a few things you need to know about the payroll bank direct deposits.

What is it?

It is an electronic payment option useful for directly transferring money to any bank account from your bank account. With this payment option, companies can send the employee salary directly into their bank account on the payday. This method saves your time as you needn’t have to visit the bank or issue live paper cheques for each employee.

How does it work?

The company must enter the details of the employee’s bank account into its payroll software system. After entering the details into the system, the company can electronically send the payroll money on payday. When payday arrives, the system automatically transfers the employee’s wages to their bank accounts without hassle.

Why should companies use it?

There are a number of reasons why companies must use direct deposits

It is convenient to use and the need to issue live cheque is reduced.
The money seamlessly moves from one bank to another account in a secure way.
You don't need to worry about misplaced, altered, or stolen cheques.
This option is reliable and will immediately send the money to the employee's bank account on the chosen payday.
Depositing payments into the accounts of employees saves the company time.
Saves cost because it decreases the need for paper cheque and work hours on payroll activities.
Allows companies to make an electronic transfer to all types of savings accounts.

FAQ

HOW MUCH DOES IT COST?

The cost varies depending on the size of the company, bank and various other factors. There is no cost for setting up the direct deposit service.

Does it make sense for me to do it if I have only a few employees?

Yes. If they are regular and full-time employees with active checking or savings accounts, then you can build a positive impact by providing quick access to their funds.

SHOULD ALL MY EMPLOYEES HAVE ACCount from SAME BANK ?

No. The employees can have bank accounts from various banks. Run the payroll and choose the employees to whom the salary should be credited.

Can I START Direct Deposit for a partial set of employees?

Yes. It is possible to do the payments for selected employees by just checking the payroll information based on some elements such as the Batch Name, Pay Period and the number of the Employees etc.

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