Are there limits to direct deposit? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Are there limits to direct deposit?

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in Office Management,Payroll Management

Q: A new employee wants us to direct deposit her paychecks into a business bank account. She’s provided proof that she’s the signatory on the account. Is this OK?

A: It’s fine. Unless you require proof of bank account ownership from other employees, you shouldn’t require this employee to present proof that she owns the account. According to NACHA rules, it doesn’t matter who owns the account.

However, to be on the safe side, ask your bank whether different rules apply if you must reverse an electronic transaction.

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