Mandating direct deposit in utah murraysville dating


14-Mar-2017 00:08

In addition, federal regulations govern direct deposit of salaries and other employee payments. Some small businesses may want to try to save money on direct deposit fees by having employees open direct deposit account at the bank where the business holds its own accounts.But this is illegal, according to the Federal Deposit Insurance Corporation (FDIC).However, some employees prefer to receive paper checks on payday to handle themselves.As with anything, there are pros and cons of direct deposit.There are federal laws on direct deposit, but states can also make regulations.The Electronic Fund Transfer Act (EFTA) protects employers and employees who use features like direct deposit.

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An employer must pay its employees, except yearly salaried employees, no less frequently than semi-monthly (twice per month) on pay days designated in advance by the employer.Well, there are not only federal laws businesses need to follow; there are also state laws and the potential for unintentional discrimination (more on that later). Some states allow employers to require employees to accept direct deposit of wages and bonuses.Others allow employees to choose between direct deposit and traditional paychecks.Small business owners in those states are advised to consult with an attorney if they want to require employees to accept direct deposit, especially if any employees are unwilling to accept it.

The same holds true in Kentucky, Maine, South Dakota and Tennessee, where laws are unclear as to whether employers can require all employees to accept direct deposit.

Direct deposit, where employers pay employees by transferring money directly to employees' bank accounts, is very convenient for small business owners, who save check printing costs and bank check processing fees.



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