More than 60% of working people in the United States have used direct deposit at least once.
Direct deposit allows you instant access to your money on payday, is eco-friendly, and convenient.
If you are trying to implement a direct deposit into your business, there are a couple of things to consider.
Continue reading to discover some of the best tips for direct deposit setup in your business!
1. Know What You Need
The most important part of the direct deposit setup is figuring out what your needs are.
It’s time to grab a paper and pen and write down the most crucial things that you need. For example, you should determine what company to go with. This can be based on the number of employees you have and what you would like to offer them.
It is also important to note the structure of your employees’ schedules, especially if some people are full-time and some are part-time.
2. Set a Payment Schedule
After you have written down your needs, you will need to pick a payment method for your business.
Most people prefer direct deposit because it is convenient and a faster way to get employees their money. Although this is all done online, you can still print a check stub template for people that need documentation.
You will also need to figure out a regular payment schedule. Typically jobs will pay bi-weekly, but some do weekly. Depending on the flow of money in your company, you can determine which is more suitable.
3. Put Someone in Charge
As a business owner, you are likely to get pulled in multiple directions.
Payroll and direct deposit can be time-consuming and can leave you overworked. By hiring or putting someone else in charge, you can focus on other things while they manage payroll.
Make sure that if you are hiring someone, they have experience with direct deposit software’s or else you may have to outsource the job.
4. Gather Documents and Information
If you want the direct deposit setup to go well in your business, you should get information from employees during the hiring process.
Employee identification numbers and W4’s must be taken care of for every single employee. That means that you have a lot of paperwork to go through and can easily miss something. After you have offered a job to someone, you should get their SS number and contact information to speed up the process.
The more information that you have, the easier it will be to enter into the system.
5. Be Secure
When it comes to money, you can never be too safe.
Make sure that the computer you do payroll on is protected and secure from hackers. There are many electronic security programs that you can get, make sure to research them before downloading.
You should also ensure that whoever has payroll information keeps it confidential and safe.
Direct Deposit Setup Done Right
Unless you went to school for it, a direct deposit setup can get tricky.
Utilizing the tips above can help you quickly and effortlessly pay your employees for all of their hard work. Make sure that when you hire employees, you get all of their information for tax purposes and identification.
Knowing your needs can help in the process of picking software for your payroll team. Don’t be afraid to hire someone new if you are unable to do the job!
Be sure to check out our blog for more articles with payroll management tips and learn how you can improve your business!
