This generation’s advanced technologies allow business companies and organizations to transact payments easily to their suppliers, clients, as well as to their employees. Specifically, a direct deposit form will need to be completed by a company employee to permit the company in sending his salary amount directly to his bank accounts. You may also see deposit form samples.
A direct deposit form is used by companies to transact salary or payroll payments electronically from the company’s account to the employee recipient. The form must be signed and approved by the employee or the owner of the receiving account in order to ensure that the transaction is authorized and validated. Once completed, the company must present the form to its affiliated bank and payroll service provider to inform them about the permitted direct deposit transaction.
Direct deposit forms can come in different formats and varieties which will depend on what the company’s purpose of using the form is. Below are some of the varieties of direct deposit forms that the human resource personnel of a company can consider using to process the salaries of the company’s employees:
1. Direct Deposit Authorization Agreement Form – This variety of direct deposit form has a section that focuses on laying out the terms and conditions to be noted and followed by the employee. To fill out the form, the employee must supply his name, contact information, and his employment details. The employee must also indicate if he will be receiving the salary on a monthly or a biweekly basis, which will highly vary on what his employment status in the company is.
2. Direct Deposit Authorization Input Form – This form contains four sections namely the employee information section, account information section, secondary account information section, and a deposit agreement section. The employee information section must have the department identification number of the employee, the employee’s full legal name, and the employee’s individual identification number. The type of action that will be executed with the use of the form should also be stated as to whether the employee is enrolling for a new account to be deposited by the company, if a change will have to be updated with the current account of the employee, if the employee will be deleting the account, or if a new account will be added and permitted for the company to send in the employee’s salary amount.
3. Direct Deposit Enrollment Change Form – The main objective of using this variety of direct deposit form is to enroll and change the account information of an employee. Included in this form is a confirmation statement section that indicates the approval of the employee to allow the company in depositing his salary and that the disclosed account information of the employee are all accurate to his actual account wherein he will expect the salary to be deposited. The authorized representative of the company must then affix his name and signature on the form to confirm and validate the entries of the employee on the form.
4. Direct Deposit Information Form – This is suitable to be used by a company who wants to clarify the data and account information of an employee. By using this form, the employee will be able to state his employment status, his general employee information, his mailing and permanent addresses, as well as his emergency contact information. A void cheque must be attached to the deposit information section of the form, which is intended to acquire a sample of what the cheque form will look like, which will be received by the employee.
5. Direct Deposit Worksheet Form – Compared to all the varieties of direct deposit forms that the human resource personnel of the company will be requiring the employees, this document does not only need one voided cheque but two or three, which will depend on how many accounts the employee has. The employee’s signature and the date of when the entries were stated are necessary to be included to complete the form. You may also see deposit forms in Doc.
Although the aforementioned direct deposit form varieties can be used by any business company, it is always beneficial to not only print out and use the form but modify or simply use it as a guide for making one from scratch. Nevertheless, below are the steps that can help a company representative in creating a payroll direct deposit form for the company’s staff and employees:
Step 1: Name the form. The document must have the title “Payroll Direct Deposit Form.” Naming the form does not only identify the document but also allows the user to know what he will be completing. Along with the name, a set of instructions of how the employee can fill out every inch of the form must be enlisted. You may also see sample rental deposit forms.
Step 2: Create a section for the employee’s details. The employee should be able to provide his identification number, name, and office department in this section. The date of when the employee signed the company’s employment contract or when the employee was hired by the company can also be included to determine the employee’s employment length.
Step 3: Have a deposit section. This section should be where the type of pay and authorization that the employee will be willing to allow the company to directly send it to his preferred accounts. The name of the financial institution where the employee’s account is from, the employee’s account number, and the frequency of the direct deposit transaction that the employee permits will be stated in this section as well. You may also see sample direct deposit forms.
Step 4: Incorporate an agreement. The authorization agreement that will be included as a part of the form must indicate the granted permission of the employee toward the direct deposit intentions of his company. Additionally, a non-disclosure or a confidentiality agreement can also be stated in the form, which will ensure that both parties, the company, and the employee will not be using the data for the benefit of unauthorized or outside parties without a proper and legal approval.
Step 5: Allocate a signature block. The employee’s name and signature should be catered in this section along with the date of when the form is submitted to the company’s representative or the HR department personnel of the company. You may also see sample employee direct deposit forms.
With the steps above, making the payroll direct deposit form should be a breeze to any company representative. Additionally, indicating remarks and individual instructions per section can also be considered when creating this form in order to help the employee and to aid the verification or review process of the company with regards to what the employee disclosed on the form. Some companies also use information forms or sheets that are essential for introducing the employee of what a direct deposit is, its necessity and importance, along with the specific requirements to be met by both the company and the employee when using the deposit form.
Direct deposit forms are important to be filled out and submitted by any employee due to the need of every company to ensure that they have sufficient documentation regarding the transaction that they will be conducting on the employee’s pay period. Other reasons for using direct deposit forms in a company are listed as follows:
Using direct deposit forms provide benefits to the company and the employee; however, when filling in the fields of the form with the employee’s data and information, the company must secure that they have supplied instructions on how the employee can complete the form based on what the banks and financial institutions require. Moreover, guiding the employee toward the process of completing the form also promotes efficiency in communicating and engaging the employee with the authorized personnel of the company including his manager and the human resource team. You may also see lease deposit forms.