6-Step Guide to Setting Up Direct Deposit for Employees
Direct deposit is the electronic transfer of a paycheck directly into an employee’s bank account. Instead of issuing a paper check, the employer initiates an Automated Clearing House (ACH) transfer that routes the funds straight to the employee’s bank. Employers choose to pay employees by direct deposit for several reasons. It’s faster, more accurate, and easier to manage than paper checks. It reduces the cost of printing checks. And it also lowers the chances of lost or stolen checks.