Requirements

There are several requirements you must meet in order to use the Direct Deposit feature:

• Your bank must participate in the ACH system. We recommend that you establish contact with your bank 90 days before you plan to implement Direct Deposit in order to complete the necessary arrangements, such as the required legal paperwork.
• For data transmission by telephone line, a modem, communications software, and telephone line that can receive and initiate calls may be required. Data transmission is discussed in more detail later in this topic.
• The bank requires two days lead time to process the Direct Deposits. A payroll that normally is distributed on Friday, for example, must be received by the bank on Wednesday morning. This means that timesheets must be processed by this time, which may be difficult for some users to do, especially if they are sending a diskette to the bank rather than using data transmission, or if there is a short lag time between the pay period ending date and the paycheck date.