September 06, 2008
Question of the Week: How Long Does It Take to Activate an Employee’s Direct Deposit?
Filed under: News
Vision Payroll

This week’s question comes from Crystal, an office manager. I have an employee who wants to have his paycheck direct deposited into his account. How long will it take for the direct deposit to become active? Answer: Vision Payroll will prenote all Automated Clearing House (ACH) transactions and wait ten business days after the date of the payroll for which the prenote was sent before activating the direct deposit. A prenote is a zero dollar transaction sent through the ACH system in order to detect invalid routing and account numbers. Although a prenote will not detect all errors, prenotes help in detecting invalid routing and account numbers, checking accounts classified as savings accounts and vice-versa, and sometimes, name and account mismatches. This will help to prevent incorrect postings before they happen. Remember, that although most prenotes will become live ACH transactions for the second weekly or first bi-weekly payroll after the prenotes, federal holidays may delay the activation for one additional payroll. Contact Vision Payroll if you have questions on the ACH or prenote process.


From New Hire to Payroll
With the Click of Button

Streamline Your Hiring
Process With

Tips / Latest News