A Direct Deposit Form is completed by an individual holding a bank account which allows another party to send funds into the specified bank account. In the majority of cases, the Direct Deposit form is required so that an employer can transfer the salary of an employee into their bank account.
There are several advantages to using Direct Deposit Forms, the main is the speed. Rather than printing checks and distributing them to employees, then waiting for the employee to deposit the check into their account and wait for processing – the method of direct deposits is much faster and a lot more convenient. Generally, the payment will show up in the account within two business days. This also provides an element of stability for the employee as they will know exactly when their salary will be deposited.
For the employer, it is also a much cheaper option, particularly if you have many employees within the company. Instead of purchasing special paper and printing (the amount of ink used can get relatively expensive) the employer puts the salary through an automated system. It may not seem like a considerable saving, but when you add up the number of people employed within a company and the amount of pay checks that will be needed, especially over a lengthy period of time – the numbers really do add up.
We would recommend downloading a generic Direct Deposit Form which is editable. The document can simply be downloaded and the relevant details can be added by hand. As an employer, it could be a wise idea ensure that a blank Direct Deposit Form is at the ready as typically employees will ask their employers for this form. It also gives you the opportunity to prefill some of the details (for example, the name of the company) and attach the business logo, if one is available.
This will make the process easier and quicker for employees. The simpler you make this process, the less likely they are to encounter any problems and cause any delays which realistically, you do not want to spend much time on.
If your employer does not have such forms on hand, you can always get in touch with your bank and request the Direct Deposit Form directly from them. All banks generally have their own forms but the information contained within is usually always the same.
The document is quick and easy to fill out and will not take up too much of your time. If you want to avoid any problems, we would suggest having your account details on hand (particularly the routing number) which will save a considerable amount of time. After all, you want to avoid sitting down to fill out the form only to fall at the first hurdle and spend an excessive amount of time searching for bank account details.
All Direct Deposit Forms will have the same general structure, requesting the same information. Ensure that you fill in the form in correctly as any errors could lead to a delay in payment or funds being transferred to the incorrect account. Take note of the following information:
Prior to filling in the form, discuss the conditions of deposits with your employer;
Fill in the details of the bank account holder (the employee) including their full name and address;
Provide the address of the bank. This information can usually be found on the bank statement for your account. If you are having trouble locating this information, you can get in touch with the local branch;
If this document is not provided by your employer, you should state the name of your employer;
Write down your banks routing number. This is usually included on a bank statement or a check – it is a number composed of nine digits. If you’re struggling to find this information or are unsure, you should contact your local branch;
State the account number in which you would like the deposits to get sent to. Again, this information is stated on both the check and any bank statement for that particular account;
Provide information regarding the type of account you want the deposits to go into. This can either be a savings account or a checking account;
Consider other additional information – sometimes your Social Security Number may also be requested;
Print your name, sign and date the form.
Once the form is completed, you should ensure that all of the information filled in is correct. Following this, you need to present this form to the payroll team within your company.
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