Direct Deposti

richards3444 · June 2006

I am looking for a direct deposit policy. Does anyone have any good ones? We want to head off any problems before they start.

richards3444 · June 2006

I know I had a typo above. I have asked to have it changed or deleted. Sorry.

dixied · June 2006

Not sure what you are looking for. We offer direct deposit to all employees as a voluntary option. There is a form the employee must complete. What type of 'problems' do you anticipate? At termination, the employee is notified that their last check will be live. This is just in case there is an error or they do not work out their 2-week notice as we pay current.

richards3444 · June 2006

Actually not sure what types of problems might come up. If no one has had any problems that would make us feel easier also. The information given so far has been great help, look forward to more.

Dutch2 · June 2006

We require all ee's to be paid via direct deposit. All we have is a sentence or two in the payroll section in the employee handbook stating the same. That is as close to a policy that we have.

amwkim · July 2006

How can you require employees to have direct deposit? What if an employee doesn't have a bank account?

ritamcguire · July 2006

>How can you require employees to have direct
>deposit? What if an employee doesn't have a
>bank account?

Same question for Dutch2.

Our CEO has been trying to have us go "mandatory direct deposit" for several years. So far I've convinced him that it's impossible since some employees don't have and/or will not qualify for bank accounts. Some of our employees are unable to mentally handle a checking account or debit card or they may be unable to get a bank account due to previous financial/banking problems. Other employees just don't want to use direct deposit.

Question for all: Is it legal to force someone to open a bank account in order to receive their paycheck?

dlail · August 2006

Ability to make it mandatory varies by state. NC allows employers to make it mandatory, but must allow ee to choose financial institution. We currently do not require direct deposit, have about 60% participation.

HRQ · June 2006

The following statement is included on our Direct Deposit form. Direct deposit is optional for all employees. I agree with making all final paychecks "live". We don't currently do it due to problems actually being notified timely by the supervisors that someone is leaving.

I hereby authorize my employer, (company name) (hereinafter referred to as "Company") to deposit any amounts owed to me by initiating credit entries to my account(s) at the financial institutions (hereinafter referred to as "Depository") indicated below. Further, I authorize Depository to accept and credit any entries indicated by the Company to my account. In the event that the Company deposits funds erroneously into my account(s), I hereby authorize the Company to debit my account for an amount not to exceed the original amount of the erroneous credit. This authorization is to remain in full force and effect until the Company has received written notification from me of my intent to terminate this agreement in such time and in such manner as to afford the Company and Depository a reasonable opportunity to cancel the direct deposit.

NaeNae55 · June 2006

From our personnel policy manual:

DIRECT DEPOSIT OF PAYROLL

Direct deposit of payroll provides employees with a quick, safe, dependable and convenient method of depositing their paycheck.

1. Employees have the voluntary option to enroll in direct deposit. Enrollment forms are available from Human Resources.
2. Employees who sign up for direct deposit receive an earnings statement each payday showing their amounts of pay, withholdings and deductions.
3. Employees who sign up for direct deposit will have their pay deposited in a checking/savings account at the financial institution of their choice. Employees may change their designated financial institution at any time by completing a new Direct Deposit Authorization Form.
4. In order to assure that accurate checking account and routing numbers have been obtained, the direct deposit method of payment will become effective on the second processed payroll following the receipt of the Authorization Form (with a voided check or deposit slip attached).
5. If the direct deposit option is elected the employee’s total net pay must be deposited in a checking and/or savings account: no partial payroll check will be issued.

We follow this policy with a short one addressing reclaiming any possible overpayments.

Hope this helped.

Nae

Peggy UH in LA · July 2006

We have Direct Deposit with a similar statement on the form and have been providing printed copies of the earnings statement (with vacation, sick leave taken/eligible, etc). The issue has just arisen (mainly as we have 2 telecommuters) whether or not to continue to provide hard copies of earnings statments or to provide it electronically. Two issues are additional space on the network if every employee starts keeping his files of those statements and security - we certainly have secure systems but that's just one more avenue that the employee's SS # is floating around, plus if the employee wants to print it - not every employee has a printer, so it would be printed at a public printer and I can see the employee hurrying to the printer to get it before someone else sees it; presumably the employee would probably email it to his home to print it. Things to think about - but would appreciate any response to whether anyone does electronically send the earnings statements.

NaeNae55 · July 2006

It is pretty much your choice based on your situation. My husband gets his statement electronically. It requires a password protected system which seems to work well. We mail our to those who cannot be here to get it in person. He works for the state, and I work for a small company.

Good luck!

Nae

richards3444 · July 2006

Thank you all for your help. We are using your great ideas.
Richards3444

marc · July 2006

Direct deposit laws are state specific. Some states allow you to require it, others do not. Check out Kansas laws to know your boundaries and limits. Nae Nae is from KS so perhaps her policies are congruent with the state laws.

If you do not comply with the state law, then you are heading for those problems you envision.

Direct Deposti

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