Direct Deposit — Payroll Definition
What is Direct Deposit? Clear definition and explanation for payroll professionals, HR managers, and employees.
What is Direct Deposit?
Direct deposit is the electronic transfer of your net pay directly to your designated bank account(s) on pay day. It's faster than paper checks, free to the employee, and available in 99% of US employers. You can split your deposit across multiple accounts — a popular strategy is to route a set dollar amount to savings and the remainder to checking. Setup requires providing your bank routing number and account number via a direct deposit form.