Offering direct deposit of employee paychecks straight into your employees bank accounts is easy if you outsource your payroll processing to a payroll service. Once you get the initial paperwork set up, your payroll processing company will take care of the rest.

If you are interested in offering employee paycheck direct deposit (a popular benefit with employees), ask your payroll processing company for their standard form for setting up direct deposit. Ask each of your employees who are interested in having their employee paychecks deposited directly into their bank accounts to complete the form and attach a voided check or savings account deposit slip. Attaching a void check or savings account deposit slip is necessary; those documents contain the necessary routing number and account number for the funds to be deposited to the employee's correct banking institution.

Your company's bookkeeper, controller or accountant will also need to submit a form to your payroll service containing your company's bank account information. This gives your payroll company the information it needs to debit your company's bank account to pay your employees.

After receiving access to your company bank account and your employees' bank accounts, your payroll processing company will send all of the instructions you provided to the National Automated Clearing House Association, which handles millions of debit and credit transactions daily for more than 13,000 financial institutions.

Typically, your employees will begin receiving direct deposited employee paychecks about two pay periods after they sign up for direct deposit service.

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