what is direct deposit?
Back in the day, mostly everyone received their cash money through paper checks. As we all know, times change and so do the customs around us.
These days employers may require you to set up direct deposit during the first few stages of your hiring process. Direct deposit is an electronic funds transfer from an employer to an employee; your job is the “payer” and you are the “payee.” Most companies transfer money from their bank account to ours on a scheduled pay cycle. Of course, you will come across a few establishments that don’t require you to set up direct deposit. When I worked at my first restaurant job for instance, I received cash tips daily and paper checks every two weeks. Aside from that job, I’ve always been spoiled with the convenience of direct deposit.
How does it work?
First, your job will have you fill out a direct deposit form. For this, you will need to know your bank account number and routing number. This information can be found…
• By visiting your bank
• By logging into your online banking account
• On a personal check (yes, checkbooks are still a thing)
Next, the payroll department will process your direct deposit request. All companies have a different process, but they all produce the same result.
Finally, your paycheck will begin to directly transfer into the bank account of your choosing. It’s that easy!
How long will it take?
The time frame for how long your direct deposit will take effect varies on how often you get paid (weekly, biweekly, or monthly). The entire process can take anywhere from two to four weeks. You’ll be receiving your money before you know it!
Direct deposit can be very beneficial because it saves you a trip to the bank. If you do happen to need your physical paycheck (also called paystubs), you are able to access them through your job’s intranet portal. You will feel a sense of security knowing you can access any paystub at any time.
Enjoy the benefits of the 21st-century folks!
Sources
https://www.thebalance.com/how-to-set-up-direct-deposit-315294
https://en.wikipedia.org/wiki/Direct_deposit