Answer: Using the following guidelines, a successful direct deposit program may be set up in as little as 45 days, once direct deposit procedures have been set up with your Originating Depository Financial Institution (ODFI). Of course, this schedule may not work for every employer, and you should work with your financial institution to determine a schedule that is appropriate for both your company and its employees.
45 Days Toward Direct Deposit
Obtain necessary implementation paperwork from ODFI and announce Direct Deposit to supervisors and get their suggestions for smooth implementation.
Meet with employees to explain Direct Deposit and distribute promotion materials. Have new employees sign-up on the first day of employment. Place paycheck stuffers promoting Direct Deposit in all paycheck envelopes.
Begin sign-up period. Collect employee financial institution and account numbers.
Forward direct deposit information to your ODFI.
Test the system with your financial institution; issue optional notifications if you decide to use them.
Remind employees that the next pay period is direct deposit; use posters, flyers, newsletter articles, interoffice e-mail, and one-to-one communications. Remind employees that have not signed up that they can still sign up for future pay periods.
Send the "live" payroll information to your ODFI.
Employees receive their first Direct Deposit payroll payments.
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The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion.