EMPLOYEE
ADVANTAGES
Safety and Security
• Eliminates possibility of lost or stolen payroll checks.
• Funds are deposited to your account faster,
thereby reducing the possibility of overdrafts.
Convenience
• Funds are automatically deposited into your
account at the beginning of the day on payday – no need to visit the bank to deposit
your paycheck.
• Receive your pay and access your funds,
even when you’re out of town.
• Receive access to your funds on payday
without waiting for your paycheck to clear.
Confidentiality
• Payroll data is more confidential; tellers,
grocery clerks, and check cashing employees don’t see your paycheck. It is processed electronically rather than handled by
people.
Improved Money Management
• Money can be automatically deposited to
your savings account, thereby encouraging
saving and good money management habits.
• May reduce bank service charges and
eliminates check cashing fees. (Employees
will need to check with their financial institution for service charges and benefits.)
• Provides a consistent statement and historical record of financial/pay transactions.
Did you know...
More than one million paychecks are lost
or stolen each year?
DIRECT
DEPOSIT
The average person spends about 8 ½
hours a year waiting in lines to cash payroll checks.
Never worry about losing your paycheck
again!
Now you can avoid the chore of rushing to
cash or deposit your paycheck. Avoid
worrying about a lost or stolen paycheck.
Eliminate payday hassles associated with
trying to deposit your paycheck when
you’re on vacation, sick, or traveling.
How? Through your company’s direct
deposit payroll program. When you sign up
for direct deposit, your pay will be
automatically deposited into your account
at your financial institution and will be
available for use at the beginning of the
day on payday.
Direct deposit eliminates standing in line to
cash or deposit your paycheck.
On payday you’ll continue to receive your
earnings statement that lists your gross
pay, deductions, and the net amount
deposited in your account.
To sign up for direct deposit, please
complete the enrollment form and return it
to your Payroll Processing department.
Once your form has been processed, your
money will be automatically deposited into
your account.
How do I know how much I made?
Your company will continue to issue
you a “pay stub” detailing gross earnings, net earnings, and other payroll
related information.
F R E Q U E N T LY A S K E D
QUESTIONS
I consider how much money I make
a confidential matter. Will direct
deposit infringe on this confidentiality?
No. Payroll information is transmitted directly from your company to
the bank. Direct Deposit will also
eliminate tellers, grocery store
clerks, and check cashing employees from seeing your paycheck.
What if I have started ACH Direct
Deposit and want to drop it?
If you have signed an authorization
for direct deposit of payroll, you will
need to notify your employer to
cancel the authorization.
Do I have to use a certain financial
institution to participate in the system?
No. Most financial institutions accept deposits via the ACH network.
It is rarely necessary to change
your banking relationship to participate in direct deposit.*
Must I have a checking or savings
account to use the payroll deposit
plan?
Yes.
* Check with your financial institution
Can I have a set amount of money each
month automatically deposited into a
savings account?
Yes. You can specify a dollar amount to
be deposited into a savings account.
How will I know how much money is being deposited into my checking account?
You will receive an earnings statement
from your employer that provides complete information; including the net
amount you are paid. This is the amount
that will be deposited into your checking
account.
Is my financial institution required to
send a deposit confirmation to me at the
time a direct deposit of payroll entry is
posted?
No. Since the employer is still required
to provide you with an accounting record
of earnings and deductions, that statement will serve as your notification. You
will also see your direct deposit entry on
your regular monthly bank statement.
I want my check in my hand first.
With direct deposit you can have all your
earnings information (pay stub) in your
hand, and your money in the bank.
I have to go to the bank anyway; can I
just deposit my check then?
Why go on the busiest days at the bank?
You can avoid the lines and hassles by
going to the bank when it is convenient
for you, or by using automated teller machines.
What if my institution is not involved with
direct deposit?
Most financial institutions are involved
with direct deposit. However, if yours is
not, contact your employer to make the
necessary arrangements.
Does the Federal Government use the
ACH network?
The Federal Government is the largest
user of the ACH network, initiating over
500 million transactions annually.