Mandating direct deposit employees girls guide for dating
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.
Some states allow employers to require employees to accept direct deposit of wages and bonuses.
Indiana, Kansas, Minnesota, Missouri, South Carolina, Texas, Virginia, Washington and West Virginia allow employers to require all employees to accept direct deposit of wages.
But even these states make exceptions for employees who do not have bank accounts, who may receive wages in cash, check or payroll card form.
States usually require that employees voluntarily participate in electronic pay programs.
This chart summarizes the states’ direct deposit/paycard rules in 2016.
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You may want to remind employees of the direct deposit option at least annually in case their circumstances or needs have changed. Employees have the right to receive direct deposit at a financial institution of their choice, regardless of whether your state permits mandatory direct deposit.