Advice for Creating and Sending Direct Deposit Forms with Clients
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A lot of employers offer direct deposit for their employees. If you're one of them, or you plan to start, you may want to consider a direct deposit form template. That way, you know all the requested information will be there, and you'll have the proper authorization from each employee. Just getting verbal permission won't be enough to protect you legally.
That's why working with a direct deposit form template matters. If there's ever any question about the employee's information or participation in the direct deposit program, you can provide the signed form as proof that you're handling the issue the way the law requires. Here are a few of the main things to think about.
What We’ll Cover
With a good direct deposit form template, your company and its employees will both have peace of mind. Especially with issues surrounding employment law and finances, legal protection is crucial. In this article, we'll talk about:
- Important Information
- Best Practices
- Secure Form Tips
- Key Considerations
- Additional Resources
Important Information in Direct Deposit Forms
Unlike more standard types of contracts, a direct deposit form template doesn't really have clauses. While there is one that authorizes the direct deposit, the rest of the form is the collection of information from the employee. Still, the right details are what matters, and the language of that one clause is also important to protect your company. Some of the most important information in the direct deposit form template includes:
- Authorization Clause -- The only clause needed in a direct deposit form template is the clause that specifically authorizes you to deposit the employee's paycheck into their account, and to remove any overage that was paid to them in error.
- Signature -- The employee will need to print, sign, and date for the direct deposit form to be valid for use.
- Account Information -- Without the account information, you don't have what you need to deposit funds to that account. That includes the type of account, account and routing numbers, and financial institution's name, address, and phone number.
- Amount or Percentage to Deposit -- The employee may want only a certain dollar amount or percentage of their pay deposited into the account directly. They may want to have other money deposited into a different account (such as dividing it up between checking and savings).
- Second Account (if Desired) -- If the employee wants a percentage or dollar amount to go into a different account, that can be specified with the same information as was required for the first account.
When you ensure this information and level of detail is part of your direct deposit form template, you'll be making an investment in the legal protection of your company's future. You'll also be protecting your employees, and helping them feel secure in using direct deposit to receive their paychecks.
Direct Deposit Form Best Practices
If your company uses a direct deposit form template, and has your employees fill in the details, you can use the form for each employee and have uniform information from everyone. Keeping those forms with the rest of your employee records makes it easy to prove exactly what information was given to you by a particular employee. For best practices, consider:
- Taking a careful look at the completed form, to make sure it's easily readable.
- Keeping the terms and requirements the same for every employee.
- Requiring a brand-new form for any changes the employee wants or needs to make.
The employees who fill at a direct deposit form should have confidence that their paychecks will be handled correctly by your company.
Tips for a Secure Direct Deposit Form
The best way to be sure you're using a direct deposit form template as wisely as possible is to have it sent and signed electronically. To do that, use Nitro Sign to get your forms, contracts, and other important documents signed. It's quick, secure, and convenient for everyone.
Key Considerations With a Direct Deposit Form
The biggest considerations with a direct deposit form include:
- Wording that provides legal protection.
- Clarity for what the employee will receive.
- Security for you and your employees.
Using a direct deposit form template makes it easier for your business to offer direct deposit, and also easier for your employees to take advantage of the convenience of that service.
Ready to find out more about a direct deposit form template for your business? Here are some resources to explore.