Direct deposit allows your employees to be paid automatically out of your bank account without you having to write a check. Our direct deposit users love the time it saves, and the best part is there is no additional charge for this service!
Please note that we are currently updating the application procedure and it may vary slightly from the below instructions.
There are two aspects of setting up direct deposit:
- Set up the bank account that will be used to pay your employees.
- Set up your employee's bank account to receive their pay check.
Please ensure that you begin this process 7 days before your employees need to be paid. Why so early? It can take up to 3 days to make verify and establish the connection to your bank account. Also, the transfer of money from your bank account to your employee's bank account will take 4 days.
If you need to approve a payroll immediately, you can do that too! A lot of Wave customers write checks to their employees for their first payroll (since you're often on a tight schedule!) and use direct deposit once approved.
Set up the bank account that will be used to pay your employees
- Click the Setting option on the left menu, select Direct Deposit under the payroll header, and click Get Started. By selecting this button you are agreeing to Payroll by Wave Terms of Service.
- On the Direct Deposit page, enter the following information:
- Personal information of the owner of the bank account that will be used to pay your employees – name, address, birthdate and Social Security Number (SSN) or Social Insurance Number if Canadian (SIN).
- Business information: How long have you been in business, what type of business it is, your business name, the business' legal name, the business phone, and website
- This will take you to VersaPay's page to enter your information on their site. Once you are finished entering the information, review all of it very carefully. If any of it is incorrect, click Edit payment details. If it is all correct, click Approve this Debit Agreement.
- After you confirm the agreement, VersaPay will send you an email to validate your account. The email will have a subject line 'This debit agreement is awaiting bank account verifications."
- *The Tricky Part: Once you receive the email from VersaPay, within 2-3 days, VersaPay will make a small deposit in your bank account. Once you see this deposit, you need to log in to VersaPay and enter the amount in order to finish your direct deposit set up. The log in link will be in the email they send you to validate your account. Want to know more about VersaPay? About Wave's relationship with VersaPay.
The VersaPay transaction should have the description VersaPay BUS. If you don't see the transaction after a few days, or do not have access to online banking, you can call your bank and ask them for the deposit amount.
While you are waiting for the deposit from VersaPay, you can move on to setting up your employees for direct deposit. Or, if you need to pay your employees today you can skip ahead to Step 5: Entering Employee Hours and issue checks for this first payroll while waiting for direct deposit approval.
Set up where your employees want their pay checks deposited
- Click on the Employees navigation and choose the employee you want to set up by clicking their name.
- Click Direct Deposit from the left menu.
- Enter all of the information for their bank account.
- Click Save to update the information entered. Tip: You can come back and edit this information any time.
You've done all you can do for now! In a few days, you will validate your account with VersaPay then you will be ready to pay your employees with direct deposit.
As mentioned previously, if you need to pay your employees today, you can always approve a payroll and write checks. All that is left to do before you approve the payroll and write checks is to complete Step 5: Entering Employee Hours.