Allow employees to authorize direct deposit: Direct Deposit Form
What is a Direct Deposit Form?
A Direct Deposit Form can be used to collect direct deposit information or to change direct deposit details. Direct Deposit Forms are simple to use and allow employees to send funds to multiple accounts. Depending on the employer, forms can be completed and submitted via email or printed and submitted in person.
Direct Deposit Authorization Forms are commonly used to create efficiency when issuing payments to employees or other payees. Instead of receiving a paper check, the payee receives an automatic deposit into their account. This authorization form can be used to authorize an employer or other agency to make direct deposits into a checking, savings, or other financial account.
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When to use a Direct Deposit Form:
- You're an employer and offer direct deposit to your workers.
- Your employer doesn't provide Direct Deposit Authorization Forms.
Sample Direct Deposit Form
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DIRECT DEPOSIT AUTHORIZATION FORM
New Authorization
| Payer Information: | Payee Information: |
| Name : | Name : |
| Address: | Address: |
| Phone Number: | Phone Numbers: |
| Fax Number: | Home: |
Work:
SSN:
Identification Number:
Financial Institution:
Name :
Address: , , ,
Phone Number:
Fax Number:
Bank Routing Number:
Account Number:
Type of Account:
Amount to Deposit:
Attachments: Attached to this Authorization is a cancelled check for my account.
I authorize to deposit all payments due to me in the account(s) named herein. I further authorize the authority to make debits or take other corrective actions, if necessary, in relation to any deposit made by into the account(s).
| By: | Date: |
Direct Deposit Form FAQs
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Information needed to complete a Direct Deposit Form (if you’re an employee)
Direct Deposit Authorization Forms are simple to complete. You'll just need your basic contact details and some banking information. To use our form, you'll need:
- Your contact information.
- Social Security Number (SSN).
- Employer Identification Number (EIN).
- Employer contact information.
- Your bank information: location, phone number, routing number, and account number.
- A verification document: a blank check or bank verification letter.
Most often, routing numbers, account numbers, and verification letters can be obtained online through your banking portal.
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How to set up direct deposit (if you’re an employer)
The first thing to note is that direct deposit services are not free. Usually, the fees are roughly a few dollars per payment. However, most agree that the advantages outweigh the associated fees. To begin direct deposit, you'll need to choose a service. You have several options. First, you'll want to contact your business bank or payroll provider to discuss their direct deposit services. If you use accounting software, it may provide direct deposit as an add-on service. Some payment processing services, which include accounting modules, may also offer direct deposit. Be sure to shop for the most convenient features at an affordable price.
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What are the benefits of direct deposit?
These days, even smaller companies are taking advantage of the benefits of direct deposit. The benefits for the employees are obvious—they get paid on time, don't need to visit their bank, enjoy simpler money management, and don't need to be at the office to pick up their check.
Benefits for the employers include:
- Reduced labor costs for payroll processing.
- No need to print paper checks or reissue lost checks.
- Easier reconciliation since payroll deductions are predictable.
- Reduced risk of check fraud.
- Smaller environmental footprint.
- Simpler setup when using a Direct Deposit Form.
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What if your employees don't have a bank account?
For a variety of reasons, some employees may not have a bank account. In these cases, handling payroll can become more complicated. It’s not convenient for you to write a check just for the few employees without accounts. However, there are alternative ways for employees to benefit from direct deposit. Of course, they'll still need an account for you to deposit funds into. The simplest option is to use a prepaid card. Prepaid cards do not require a credit check. Employees can obtain the card and log in to their account to retrieve the direct deposit information, such as routing and account numbers. Other options include payroll cards, which also do not require employees to qualify for credit, though they may require you to set them up.
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