direct deposit questions

Craig

We're finally implementing direct deposit at my company. Are there any pitfalls to watch out for? What type of language/disclaimers need to be on the sign-up sheet? Can anyone point me to an example of a good sign up form or send one to me via email? Thanks in advance.

dhnyct

Do you outsource payroll processing? If so, they can provide assistance. If not, be sure you get a signed authorization form from each employee. (Check out mail order HR form companies.)

Our payroll source recommends we get a voided check from the employee to make certain we record correct routing and account numbers.

Also, inform the employees they MUST tell you when they make changes involving this account.

Direct Deposit can be a wonderful asset to both the employee and the business. You can even offer to set up accounts for savings, etc.

pv25

This link might help you:

[url]http://www.elinfonet.com/HR_RZ.php[/url]

Click on Example Forms, then on Human Resources, and then Payroll. There should be some example direct deposit authorization forms there.

barry

A problem arose when we went to direct deposit: The bank we were using offered free checking accounts to employees who did not otherwise have one and this was touted in our promotional literature. We later found out that they would not do this for employees who had experienced problems with checking accounts in the past. We wished we would have covered this up front and avoided some bad PR with our employees.