Direct deposits remain one of the easiest modes of paying your employees for their hard work. With employee direct deposit on payday, the whole payroll process becomes fluid and easy.
As a manager or business owner, you are responsible for the running of the business and every little choice you make matters.
But what is employee direct deposit and how does it work?
When you pay your employee’s wages directly into his/her account from your company account electronically, it is known as a direct deposit. This system helps employer’s save time and money in printing paychecks, manually keeping records and more.
A in the US is an Automated Clearing House payment because the ACH governs any such financial transactions.
An employee direct deposit benefits your business in many ways and hence will cost you some money. It is important to consider your budget before settling for the service you want.
The cost you pay if you chose to use a bank depends on the bank. If you use direct deposit software, the cost also depends on the type. Some forms have software that allows you to enjoy several other benefits besides direct deposit and don’t charge additional fees.
How to Set Up an Employee Direct Deposit
- Seek A Reliable Provider
Your direct deposit provider will have your business and employees’ data plus will be in charge of deducting the payments from your business account. You can choose to work with a bank or consult a firm with the software. Some software has HR, business accounting, payroll, and direct deposit functions.
You need to decide what you want and find it.
- Initiate The Set-Up Process
After your decision to use a particular employee direct deposit platform, you can contact your provider who will require some information to set up your direct deposit function. A software provider will require your business account and several other data to be crammed in the platform. The provider would do a test run on the process to ascertain if it’s working.
- Get Your Employee Data
After the employee direct deposit platform has been set up, next is to get your employees data. The needed information is your employee bank account number, bank name, and bank routing number and account type.
You can then input this information into the system.
- Set-Up A Payroll And Direct Deposit Schedule
Once you are all set with the employees’ data in your payroll system, next is to creating a schedule to work your payroll and deposit. Payroll might take a week or more to be completed so you shouldn’t wait till you’re ready to make the deposits before running your payroll.
You need to discuss the schedule with your providers and your employees so they will be better equipped to understand any slight changes.
After all the above has been done and you have verified your company’s direct deposit function, you can then do your payroll as scheduled and credit your employees’ account directly from your company account afterward.
E-pay offers some of the most efficient payroll and direct deposit services in the country. There is updated software that allows you to enjoy limitless services even with a small budget.