How does payroll direct deposit work?

Payroll direct deposit used to be a special benefit to employees but has now become the norm rather than the exception. 

Previously, employees were paid with a physical check which needed to be taken to a bank and manually deposited. They then had to wait two to five business days for the check to clear. 

Advancements in digital and automated systems have allowed businesses to pay their employees through payroll direct deposit. 


What is payroll direct deposit?

Payroll direct deposit is an electronic transfer of funds from the bank account of the employer to the bank account of the employee via the Automated Clearing House network. 

Usually part of the onboarding process, a new hire will provide the HR department the account and routing number of their desired bank account. This automated system reduces the cost and risk of fraud associated with paper checks. 

Additionally, there is no waiting game with payroll direct deposit; employees have access to their earned money as soon as the deposit hits their account. 


Changing payroll direct deposit

Changing payroll direct deposit is not as easy as the initial set up. 

When an employee decides to change their banking relationship, the manual back-and-forth process can take multiple pay cycles to complete. 


How can Atomic help change payroll direct deposit?

Thank goodness for Atomic’s payroll direct deposit API solution

We offer service providers the infrastructure to connect directly to a consumer’s payroll account and switch the payroll direct deposit in real time. 

That means no more waiting for Human Resources to return a phone call or send an email. 

By providing a consumer with payroll direct deposit you can serve a wider range of customers with a greater breadth of services.

Would you like to find out more about how Atomic can help your company with payroll direct deposit? Request a demo or fill out the contact form below.