How to Change Your Direct Deposit on Paylocity
The specific steps for changing the direct deposit information on Paylocity may vary from one organization to another based on the software configuration used by an organization to manage payroll. However, here is a general overview of the process that needs to be followed.
1. Log In to Your Paylocity Account
Every organization has its own unique URL. So, contact your payroll/HR department for the URL. Along with the URL, you will get the username and password to access your Paylocity account.
2. Navigate to the Direct Deposit Section
After you login successfully, navigate to the section labeled ‘Payroll’ or ‘Pay.’ Under this section, look for the ‘Direct Deposit’ or ‘Bank Account’ option.
3. Enter New Direct Deposit Information
In the designated direct deposit section, you will see the existing direct deposit information. Look for the ‘add,’ ‘edit,’ ‘update,’ or similar options to make changes to the current information.
Enter the new direct account information, including your bank account number, full name, account type (e.g., savings or checking), and routing number.
4. Verify New Bank Account Details
Review the new direct deposit information to ensure that it’s correct. Some systems may prompt you to enter the information again to prevent errors.
Once you have verified all the information, submit the changes by clicking the ‘Save’ or ‘Confirm’ option. If you receive any error message, read it and provide what is needed to fix the error.
5. Request Confirmation of Account Change
You can request the HR/Payroll team to confirm the direct deposit change. If needed, follow up with them to inquire about the status.
6. Confirm Direct Deposit Change
Once you receive the confirmation via email or as a physical letter, save it for future reference. You might need the confirmation if any issue arises in the future.
7. Monitor Account for Changes
It’s a good practice to monitor your bank account for new deposits. By monitoring your new bank account, you can confirm that the changes have been successfully implemented.
8. Contact Paylocity with Questions
If you need assistance or have any questions, you should contact Paylocity through the contact options provided on their website. Chat and email options aside, their customer care number is also listed on the website.
What Are the Benefits of Using Direct Deposit?
Timely payment
Unlike checks, there won’t be delays due to holidays, business closures, etc. The direct deposit clearance time is also comparatively faster.
Quick Funds Access
Because the direct deposit clearance time is only 1 to 3 days, you will have quick access to funds for your personal use.
Convenience
A direct deposit payment will also save you the time and hassle normally required to deposit a check at a bank or ATM.
No Theft Risk
A physical check can get lost, stolen, or misplaced when carried around. A direct deposit payment does not carry such risks.
No Forgery Issue
Physical checks can be forged. Since the direct deposit transfer is done electronically, it won’t be possible for anyone to manipulate direct deposit payments.
What Information is Needed to Change Direct Deposits?
The following information is needed to change your direct deposit information.
Personal Information
You should provide your personal details, such as your full name as per employee records, employee ID, and your Social Security Number.
Banking Information
You need to specify your bank name, account number, routing number, and type of account.
Additional Information
Depending on your organization’s rules, you may have to provide authorization to initiate the direct deposit change.
Justification
In some cases, you may be asked to provide a valid reason for the change.
What Are the Risks of Using Direct Deposits?
While the risk factors are low, direct deposits have some potential drawbacks.
Errors in Payment
Even a slight error when submitting the new direct deposit information can cause payment delays.
Difficulty in Reversal
If the payment goes to the wrong account due to technical or human error, it would be difficult to reverse it.
Fraud Risk
Like any other online transaction, direct deposit payment is also subject to fraud risk.
Account charges
Most banks levy non-maintenance charges if sufficient funds are not maintained in the account.
How Can You Avoid Payroll Mistakes When Changing Direct Deposits?
There are various ways to avoid payroll mistakes when submitting your direct deposit change request.
Pay Attention to Detail
Since financial information is very sensitive, you should double-check everything before submitting banking information.
Use Trusted Networks
To prevent authorized access, you must always use trusted networks and devices when submitting your direct deposit information.
Follow the Rules
Every organization has certain rules and procedures regarding the direct deposit change that must be followed.
Stick to the Deadline
Obtain the deadline from your organization regarding direct deposit change and submit the changes at least a few days in advance.
Stay Informed
It helps to be proactive and informed about any updates related to the change. Follow up whenever necessary and monitor your bank account after the changes have been made.
What Are the Potential Fees for Changing Direct Deposit Accounts?
Changing your direct deposit information on Paylocity does not carry any fees. However, there can be some potential bank fees that your financial institution may levy for changing your direct deposit information on Paylocity. You need to check with your bank to understand the fees, if any.
What Are the Potential Tax Implications for Changing Direct Deposit Accounts?
There won’t be any direct influence on your taxes for changing your direct deposit account on Paylocity. Having said that, you should update your new bank account information with the IRS to receive tax refunds through direct deposit without undue delays.
If you have specific concerns regarding your taxes, it’s better to consult a tax professional. A tax professional will be in a better position to inform you whether or not there will be any tax concerns based on your individual circumstances. However, the act of direct deposit change alone does not trigger any tax consequences in general.
