Things to Know About Employee Direct Deposit
Day in and day out, your employees live busy lives. They juggle competing responsibilities that quickly fill up their calendars and eat away at their time. Any way that business owners can help lighten their load will go a long way to garner the employees’ appreciation. Perhaps the easiest means of accomplishing this comes in the form of a direct deposit. Directly depositing your employees’ pay into their bank accounts can save them the hassle of rushing to the bank before closing time when they have other items they could attend to.
There’s no getting around it: these days, offering a direct-deposit option to your employees is a must. Thankfully, with LCAF Payroll, the process is simple.
To make sure the direct-deposit process goes smoothly, be aware of the following:
- For direct-deposit funds to clear for disbursement, payroll hours must be submitted at least two days prior to the payroll date, as there is a two-day funding period.
- The lump sum amount in direct-deposit payroll exits employer accounts one day before the check date; funds must be available then.
- Direct-deposit funds are moved from the employer’s account to the service bureau’s account before being disbursed to the employee bank accounts.
Getting your employees enrolled in direct deposit is quite simple. First, your employees will fill out a direct-deposit agreement form, provided by LCAF Payroll. Next, they will provide a voided personal check that matches the prospective direct-deposit account. If the employee cannot provide a check, most banking institutions will give them a direct-deposit confirmation form that includes account and routing numbers. Once our team receives this form, we can set up direct deposit within minutes. After employees are signed up, LCAF Payroll handles the rest!
Paystubs and Deposit Confirmation
Though direct deposit allows your employees to sidestep the middleman and receive their pay without the hassle of dealing with paychecks, employers are still legally required to provide paystubs. Among other things, these paystubs help your employees see the exact amount earned, deducted, and deposited. Should an employee claim the money never arrived in his or her account, LCAF Payroll can trace those funds to the bank account on record and verify the deposit.
Direct deposit is a convenience your employees will thank you for. And with LCAF Payroll, we handle everything for you once we have the initial paperwork. To learn more about direct deposit or sign up for our payroll services, contact us today.