Direct Deposit for Employees

Setting up Direct Deposit for your employees allows you to transfer salaries directly from your organization’s bank account to their bank accounts.

There are two steps involved in configuring Direct Deposit for an employee:

1. Configure Direct Deposit
2. Bank Account Verification (handled by Zoho Payroll)

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Configure Direct Deposit

For New Employees

To configure direct deposit for a new employee:

1. Go to the Employees module.
2. Click Add Employee.
3. Provide the required details in each of the below steps:
   • Basic Details
   • Personal Details
   • Tax Details
4. In the Payment Details section, select Direct Deposit as the Payment Mode.
5. Provide the employee’s Bank Information:

Field	Description
Bank Name	Enter the name of the bank where the employee holds an account.
Account Number	Enter the account number where the employee wants to receive payments.
Routing Number	Enter the nine-digit routing number of the employee’s bank.
Account Type	Select the type of bank account: Checking Savings

6. Click Save and Continue.

The employee will be created with Direct Deposit as their payment mode.

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For Existing Employees

To configure Direct Deposit for an existing employee:

1. Go to the Employees module.
2. Click an employee.
3. Click the edit icon in the Payment Information section.

4. Select Direct Deposit.
5. Provide the employee’s Bank Information:

Field	Description
Bank Name	Enter the name of the bank where the employee holds an account.
Account Number	Enter the account number where the employee wants to receive payments.
Routing Number	Enter the nine-digit routing number of the employee’s bank.
Account Type	Select the type of bank account: Checking Savings

6. Click Save.

The employee’s payment mode will be switched to Direct Deposit.

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Bank Account Verification

After adding your employee’s bank account, Zoho Payroll will automatically initiate a verification process to ensure the correctness of the provided information.

This automated process typically takes 2 to 3 business days.

• Upon successful verification, you’ll be able to process payrolls and transfer salaries via Direct Deposit.
• If the bank account fails the verification, update the employee’s bank information. Note that updating the bank account will trigger another 2 to 3 business days for verification.

For more details on the verification process, refer to our help document on Bank Account Verification.