Bank Direct Deposit​

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Key things to know about payroll bank direct deposits

How do you pay for the salaries of your employees? There are several options to choose such as cash, checks, 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 payroll bank direct deposit over other payment options. It is a safe and hassle-free way to do employee salary payments. The only thing is every employee must have a savings or checking account with a 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 checks for each employee.

How does it work?

The company must set up payroll bank direct deposits accounts for its employees. To receive the fund the employee provides a voided deposit slip copy to the company. It allows the company to enter the details of the employee’s bank account into its payroll software system. Once the details are entered into the system, the company can electronically send the payroll money on the payday. When the payday arrives, the employee’s wages are automatically transferred to their bank accounts without any 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
  • No need to worry about cheque getting misplaced, altered or stolen.secure
  • It is a reliable option and the money will be sent to the employee’s bank account immediately on the chosen payday
  • Saves the time of the company as payments are automatically added to the accounts of employees
  • Saves cost due to a decrease in the need for paper cheque and work hours on payroll activities
  • Allows companies to make an electronic transfer to all types of checking and 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 THE SAME BANK ACCOUNT?

No. The employees should have multiple bank accounts for direct deposits. They have to decide how to distribute their payment checks between the accounts.

Can I only do 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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