Direct Deposit Definition
The electronic transfer of an employee’s net pay into their bank account.
Direct Deposit Extended Definition
Employers can offer employees the option of direct deposit for their payroll, giving employees a paperless way to receive their pay. The process requires initial paperwork and a means to transmit the payment to the employee’s bank account with each payroll run. There are federal (and sometimes state) laws that specify the direct deposit requirements for employers.
Last Updated By
Jenna Hutkowski | Apr 13, 2023