You’ll notice one of the top items on our New Hire Paperwork Checklist is direct deposit. That’s because we believe it to be very useful and beneficial to business owners and their team. Keep reading for all you need to know about direct deposit.
It’s easy to set up direct deposit for your employees! Just give them an authorization form to complete and sign. And ask them for a voided check or copy of a document from the bank that verifies their accounting and routing number.
Direct deposit is generally used for regular paychecks but it can also be used for bonuses, commissions, expense reimbursements, retirement, annuity, interest, or other disbursements. It’s very flexible and offers a few great benefits to your business and your employees.
Why Use Direct Deposit?
Direct deposit is possibly the best way to pay your employees. 97% of Direct Deposit users are satisfied with the service. Your business will benefit from using direct deposit in many ways:
- Saves time and money
- Streamlines payroll processes
- Increases productivity and accounting efficiencies
- Is safe and secure
- Reduce paper costs since you no longer need to use checks and envelopes
- Eliminates costs of re-issuing lost or stolen checks
- No longer pay stop payment charges
- No longer need to investigate missing checks
- HR and payroll staff no longer waste time preparing checks
- Direct deposit is environmentally friendly by reducing the amount of paper you use
Your employees will benefit from direct deposit pay just as much as you will. These are some of the core benefits.
- Employees no longer waste time depositing or cashing checks
- Employees on vacation or out sick can relax knowing their check was deposited for them
- Employees can control where their money is deposited (checking, savings, retirement savings, etc.)
- Lost or stolen checks are a common form of identity theft, this instance is severely lessened by using direct deposit
You can further these benefits by offering online pay statements too. Direct deposit brings many benefits to the table for you and your employees. But it’s just one of the important documents you’ll need to make sure you cover on your new hire’s first day. Download our New Hire Paperwork Checklist below.