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.

Flat Amount: Specify a dollar amount to deposit into a secondary account while the balance of your net earnings is deposited into your original, established account. Percentage Split: Create a percentage split (80%/20%, 60%/40%, etc.) of your net earnings between your primary account and your secondary account.

Look in the Action column in the Employer Info box. If you see Active, it means your direct deposit is all set up and ready to go.

Instead of a voided check, you might be able to provide: A direct deposit authorization form. When you complete this type of form, be very careful not to make any mistakes when you fill in your bank's routing number and your account number.

Do I need a voided check to set up direct deposit? No. You do not need a voided check to set up direct deposit.

A deposit is essentially your money that you transfer to another party, such as when you move funds into a checking account at a bank or credit union. In the case of depositing money into a bank account, you can withdraw the money at any time, transfer it to another person's account, or use it to make purchases.

Does Zelle count as direct deposit? ›

Your direct deposit needs to be an electronic deposit of your paycheck, pension or government benefits (such as Social Security) from your employer or the government. Person to Person payments (such as Zelle^®) are not considered a direct deposit.

Direct deposit is convenient, but its specific timeline can depend on your employer. Be prepared, when starting a new job, it can take 1 to 2 pay cycles for direct deposit to be set up properly. This may mean you'll still have to use physical checks for a little while longer until everything is set up.

In general, you can make a direct deposit into someone's savings account, just as you would their checking account. Someone may prefer you put money into their savings vs. their checking account so they're less apt to spend it right away.

With a tool like PDFChef from Movavi, you can easily fill out your direct deposit info for your employer, so you can start receiving your pay directly to your account – with no need to go to the bank to deposit your funds.

A direct deposit authorization form authorizes a third party, usually an employer for payroll, to send money to a bank account. Typically, an employer requesting authorization will require a voided check to ensure that the account is valid.

The whole point of the voided check has been to provide payroll departments with account and routing numbers.

You might have some employees who do not have a bank account. You can only pay employees with direct deposit if they have an active bank account. Employees might need to open a bank account if you can make direct deposit mandatory. As the employer, you also might prefer a different payment method to direct deposit.

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.

In many states — including California, New York, New Jersey, Florida, Vermont and Illinois — employers must obtain written permission from employees in order to pay them by direct deposit. A good rule of thumb is to require written authorization from the employee, even if state law doesn't say to.