In today’s generation, almost everything has been automated ranging from food vending machines to withdrawing money from a bank account. Due to the advantages that an automated process provide to the population, business companies and most career fields in the industry hop to plans that involve in changing manual procedures toward automation. This includes the process of paying employee reimbursements and salaries that are done by the financing and the human resource personnel of a company. Along with the automated process is a specific form that company management must complete, which is known as a direct deposit enrollment form.
A direct deposit enrollment form is used by banks for companies to enroll themselves and their employees in a direct deposit system that allows the company to send the salary through all their employees with a lesser process to undergo. All the financing personnel needs to accomplish is filling out the enrollment or registration form with the right information and amount, then wait for the updates that will indicate the successful transfer of the employee’s salary to the employee’s bank account.
Even in varying banks and companies, a direct deposit enrollment form must have the basic yet necessary sections to meet its purpose of collecting the account and financial matters of an employee. Listed below are the five important sections of this form:
This refers to the name, social security number, and the complete address of the employee who will be enrolled in the bank’s deposit program such as his street address, city name, state, and zip code numbers. These pieces of information will serve as the general entries for registering the employee to the bank’s records and database.
The company’s business name, employer number, company address, as well as the type of business that the company is registered in the state will need to be included in this section. Specifically, these data are necessary for determining the sender of the salary amount and the authorized person who is responsible for sending the amount prior to the day of the pay release.
This contains the name of the bank who will serve as the bridge for the salary electronic or wire transfer and the type of method to be used for depositing the amount whether a checking or a savings account. Additionally, the account number of the employee, the bank’s routing number, and the amount of deposit are also included in this section for indicating further details about the employee’s account.
Some banks provide a separate authorization form for their members or clients when it comes to permitting any money transfer. However, even though the authorization is in a form of a statement or in a different document, the bank must assure that the significant terms and limitations are included to properly highlight the regulations that the company will need to follow when it comes to direct depositing amounts.
This last section will highlight the total deductions, added and deleted amount, and the specified date when the deductions were implemented in the employee’s account. To complete the document, the employee or the owner of the bank account where the deposit is addressed will have to affix his signature on the form along with his initials right beside it to indicate an approval.
A direct deposit enrollment form does not only limit its usage to assigning payroll payments for employees but also for paying reimbursements and updating an employee’s financial information. In the event that an employee has been involved in an accident, the employee will have to submit an incident accident report, his medical forms, and a medical reimbursement request form to his employer. These three documents will be used for determining the amount that the employer must deposit into the employee’s account for repaying the expenditure costs the employee spent due to the workplace accident that occurred. However, before the company can send the amount, the employer must complete a reimbursement direct deposit enrollment form to gather an authorization in depositing the employee’s medical reimbursement payment.
Another instance wherein a direct deposit enrollment form will be used is when an employee has some changes in his personal information such as his name and address. Updating the employee’s information is essential for both the company and the employee himself. If a data is not updated in the records of the bank, there is a grave possibility that the employee will not be able to receive or withdraw his savings. On the other hand, the company will also have a tough time in depositing the amount especially if the employee underwent an employee name change without informing them prior to the day of providing the salary.
Numerous benefits are observed and acquired when a company considers using the advantages of technology. Below are some of the known benefits that a direct deposit will provide to both the company and their employees once they are enrolled in the system or program:
Even though there are a lot of benefits that employees and companies will acquire, it is always necessary to be mindful when conducting the transfer and deposit to assure that the right amount has been sent to the right recipient. Overall, direct deposit forms are important as long as the employer or the sender is informed of the amount to be sent to each employee account involved in the company.