Direct deposit: How does it work?

If you choose direct deposit, we automatically deposit your approved paychecks into your employees' bank accounts on the pay date. Money is transferred by the Electronic Payments Association (NACHA or ACH), a long-established electronic funds transfer system used by banks. No money is ever transmitted over the Internet.

We process your direct deposit transactions at 5 pm PT, two banking days before the pay date. Make sure that the funds to pay your employees are available in your account before the processing begins.

Approve your payroll by 5 pm PT at least two banking days before the pay date. Paychecks approved after the cutoff time will be processed on the next banking day and paid two banking days after that.

For example, if your pay date is on Friday, approve payroll by 5 pm PT on Wednesday. If you pay your employee on Monday, approve payroll by 5 pm PT on the previous Thursday.

Need help figuring out when you need to approve payroll for direct deposit? Try this payroll date calculator.

On average, It takes about seven business days to set up direct deposit, including verifying your company's bank account for security purposes.

Until you've finished setting up direct deposit, pay your employees by writing or printing paper checks.

See the steps for setting up direct deposit.