Direct Deposit: Being a business owner, there are many responsibilities on your shoulders that you need consideration and effort. While managing the ins and outs of the business operations, you also need to manage the employees, which includes their calculating their payments and paying them on time.
If you have ever been employed by another business, chances are that you are already aware of direct deposit. It is a way to make the payday easier for both: the employees as well as the employer.
Setting direct deposit for your employees can make your payroll process more fluid and simple. Not just that, it is a surety that your employees are being paid at the time of their efforts and working days.
Setting up a direct deposit in Columbus, Georgia, and more may seem like a daunting task, but it is something that you can set up quickly. In this post, we are going to discuss a step-by-step guide to set up a direct deposit system for your company.
Six Steps to Set up
Step #1: Decide on the Direct Deposit Provider
The first thing to determine when setting up direct deposit is to understand the services and organization providing direct deposit services. Remember that this is the service that will handle and house all your business information and employ information. Not just that, it will also be taking up funds to process the payrolls for the employees every month.
Generally, a small business has two options to set up a direct deposit system. The first is to collaborate with a bank that houses your business funds and accounts or work with a payroll service that provides direct deposit services. Not just that, they must also provide software for accounting or HR software that has payroll capabilities.
Step #2: initiate the direct deposit process
If you decide on getting direct deposit services from a bank, it is essential to discuss the options directly with them. Take the pricing information and specifics about the services under consideration before initiating the process.
You can set the direct deposit of the company through the bank’s online banking portal. Before beginning with the process, your bank may also ask for your financial statement to understand if you have the necessary finances to start with the process.
On the other hand, if you are using the payroll software, all you need to get started is to create an account and integrate all the information required to initiate the direct deposit. You need to put in your bank account information, and the software will pull the information from the bank required for direct deposit.
Once all the information is extracted, you’ll need to verify the information—usually coming through an email—to confirm that you are the administrator of the account. Once this is done, your provider will conduct a small test to determine if the process is working efficiently.
Step #3: collecting employee information
After initializing the system with a suitable service provider, you need to collect the information from your employees. Whether you have 10 employees or team tens, you’ll need them all to give you the same piece of information to continue with the process. You’ll require the following information from your employees.
- The bank account number
- The type of bank account
- The bank’s routing number
- The name of the bank
Besides this information, you also need your employees to sign an authorization form, which gives you access to the information to set up a direct deposit.
Step #4: enter the employee information into the system
Now that you have all the employee information, you need to add it to your payroll. If your employees can enter the information themselves into the system, you may not have to worry about this step.
On the contrary, if you input the employee’s information into the system, you must have the document specifics to this process. Most importantly, you’ll be using the authorization form to input every piece of information into your system.
If you are working with the bank, you will have to input the information into your bank’s online system. There are two ways in which this can be achieved. First, you can upload the NACHA file, which contains all the information of the employees that can be accessed by the bank. Second, you can do it manually and save it on the system to send the payroll through direct deposit to the employee.
Step #5: create a payroll schedule
Once all the information is entered into the system with the direct deposit provider, and you’ve also authorized it, you should be getting ready with a direct deposit. Bear in mind that can take up to 7 to 10 days to set up officially with the provider, so you should begin with the process accordingly. It is essential, to begin with, the process of the date you intend to pay your employees.
Come up with a payment schedule and check it with your bank or payroll service to ensure they are up to date with the calendar. This can help you make sure that your current schedule is on track once you have set up a direct deposit.
Keeping that in mind, you must also remember to communicate the schedule with the administration as well as the employees. You want to set a date for the employees to submit hours and time cards, so you have the time to review and process the payroll for direct deposit. Bear in mind that you, too, need to provide the information to the payroll service provider so they can process.
Step #6: run payroll
Once you have everything set up and verified, you are ready to go. You can run the payroll on the day scheduled, and your employees will receive their wages via direct deposit. However, if any issues arise while running the payroll, your payroll service provider must be able to help you through the process.
Whether you go to a bank for direct deposit or hire a payroll service, setting to pay your employees is a safe and efficient process. Once you go through all the complicated processes of getting a direct deposit, you won’t be responsible for everything up and running. Furthermore, your employees can be paid on time, which can only work as an advantage for the business.
Author Bio: Margaret Phillips is currently employed at On-Time Payroll 247 and is highly appreciated for her skills at the firm. She is a graduate of the University of Philadelphia and is a graduate of business administration. She is one of the most acknowledged employees at the place. She strives to make sure no details are left out so she can assist the business to succeed. She also loves to travel.