I started a new job and have been there for coming up to a month now. I asked if they offered direct deposit, and HR told me they only do direct deposit through one bank. They use Wells Fargo to process our checks, and I ended up opening a checking account with them so I can cash my upcoming check fee-free. I am confused because i thought direct deposit was a general thing.. is it not?
I live in california if that is a factor in this.
Direct Deposit only available through one specific bank.
byu/keoshan inpersonalfinance
Posted by keoshan
5 Comments
Sounds strange. Possibly just a misunderstanding/miscommunication.
Did you ask for the forms to get direct deposit setup? What do those forms say?
I worked at a payroll processing firm. Direct Deposit is not a requirement of California. My firm charged the same amount to the employer for either paper check (created by employer), or direct deposit. We did have arrangements with some of the big banks. However, the limitation was that the employer needed to have their payroll funds in a specific bank. There was no restriction on the employee’s bank (as long as it was a US bank.
If your existing bank allows Mobile Deposit via a phone app, you should be able to post a paper check.
Your HR person is either lazy, stupid, or corrupt.
An employer cannot dictate DD to one banking institution.
You are free to use any bank you wish.
That’s a bit bizarre. Is this a really tiny company, and they don’t outsource payroll? They may not be setup to do ACH, and I know that Wells Fargo does have a thing in their small business online portal allows manual transfers to other customer’s Wells Fargo accounts. They might be using that for “direct deposit”.
Actual direct deposit should be able to go to any US bank account. That said, employers in aren’t required to offer it (and you aren’t required to use it). You may be stuck depositing checks twice a month. Mobile deposit makes that much less of a headache than it used to be.
Sounds like the HR person doesn’t know what they are talking about. WF is possibly the corporate bank, but that wouldn’t have any bearing on where they can deposit the check into