• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Are there limits to direct deposit?

Get PDF file

by on
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.

Leave a Comment