How do I set up Direct Deposit? (2024)

FAQs

What do you put for amount when setting up direct deposit? ›

Usually, the deposit amount equals the amount of your check. However, you may have the option—for example, with a paycheck—to deposit a percentage into your checking account and a percentage into your savings. Attach a voided check or deposit slip.

Most employers will ask for a voided check to set up your direct deposit in addition to filling out a form. They ask for this because a check has all the information your employer needs to help ensure your paycheck is deposited in your account.

Direct deposit is the deposit of funds electronically into a bank account rather than through a physical paper check. Salaries, tax refunds, investment redemptions, and government benefits are commonly paid in this way.

For example, if you receive $1,000 on your Net Pay, and you select 25% to go to account #1, that means $250 will be allocated to Account #1, leaving $750 remaining. If you select 50% to go to Account #2, then 50% of the remaining $750 or $375 will be allocated to Account #2.

For instance, if an employee would like to have all but $100 direct deposited into an account, you could set up an account with an Amount Code of "Flat-" and enter an amount of 100. The remaining $100 would be distributed as a check if no other direct deposit is set up to distribute it.

Each employee needs to provide the following information: bank name, account type, account number and routing number. Some states also require employees to sign a consent form before their employer can switch them to direct deposit.

There are many options available to employers when it comes to setting up direct deposit, but the process itself is relatively straightforward and simple. You will need to register with a provider to access their direct deposit platform, then fill out the necessary forms and submit them to the provider.

The Net Pay Distribution section is where you specify how much of the check should be direct deposited (in this example, only 50%). The percentage in the Direct Deposit Allocation section is set to 100%. This is because 100% of the amount to be direct deposited needs to go in the one savings account.

What is a direct deposit for dummies? ›

A direct deposit can be defined as a payment made directly into a payee's account. The payment can be made electronically from one account to another, instead of the traditional check deposit.

Remainder - Directs the system to deposit the remainder of net pay after all other partial deposits are made.

Most employees will want to select “Balance of Net Pay” to setup a basic direct deposit. If you choose, you can select the other two options to setup other types of deposits. For example, you could deposit 5 percent of your net pay to a savings account using the Percent option.

The Net Pay Distribution section is where you specify how much of the check should be direct deposited (in this example, only 50%). The percentage in the Direct Deposit Allocation section is set to 100%. This is because 100% of the amount to be direct deposited needs to go in the one savings account.

The Deposit Order field indicates the order in which pay is distributed to bank accounts if you have multiple direct deposit accounts. The lower the number, the higher the priority. Balance of net pay accounts should have the highest deposit order of 999.

The term "balance of net pay" means that if you have only one account set up for direct deposit, the full amount of your pay check will be deposited into that account. If you have multiple accounts set up, this is the last account your check will be deposited into on pay day. FAQ Set: Payroll FAQ - Direct Deposit.

Sequence: This field establishes the order in which bank accounts are prioritized. Example 1: You would like all of your net pay deposited into one bank account. Remaining Net would be selected in the Sequence Field.