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Frequently Asked Questions About Direct Deposit Payroll

How does Direct Deposit Payroll work?

Instead of issuing checks, your employer furnishes computer-readable data to Pinnacle Financial Partners. The information is then processed through the Federal Reserve Automated Clearing House (ACH) network that distributes your pay to the financial institution housing your personal accounts.

Why would I want to have Direct Deposit Payroll?

Through Direct Deposit, you can be confident that your pay will be credited to your account even if you are on vacation, ill, or not at work for some other reason. You don't have to go to the bank and wait in line to make your deposit. Plus, you don't have to worry about your paycheck being lost or stolen. And one of the nicest benefits is the fact the Direct Deposit is highly confidential.

What if I need cash from my paycheck?

You probably still won't have to go inside and wait in line. Many financial institutions have automated teller machines that allow you to obtain cash from your account. And, of course, you can always cash a check at your financial institution just as you always have.

Are there any disadvantages to Direct Deposit Payroll?

Not really. Instead of receiving a paycheck, you receive a detailed earnings statement that shows all deductions. You do need to remember to enter the amount of your pay in your register each payday.

Must I have my account at a particular financial institution to be able to participate in the program?

No. You may keep your account at the financial institution of your choice. The Automated Clearing House mechanism allows the funds to be distributed to virtually any bank, federal credit union, or savings and loan association.

When will my account actually receive a credit for my payroll deposit?

Your own financial institution can give you a specific answer to this question. At Pinnacle, your funds are available as soon as we open for business on your payday.

What do I do if I change financial institutions, accounts or decide to discontinue participation in the program?

Just notify your payroll supervisor at your employer. The change can be made quite simply.

What if I find an error in the amount credited to my account?

The likelihood of this occurring is remote. However, if it happens, the first step would be to contact your own financial institution to ensure that the information was posted as received. If the discrepancy is not resolved at that point, you should contact your payroll supervisor at your employer immediately. The ACH network contains a very effective tracer system that enables banks to identify the problem and make any necessary adjustments promptly.

How will I know how much has been deposited to my account? Will I receive a confirmation slip from my financial institution?

The amount credited to your account will be exactly the amount of your net pay, as shown on the earnings statement provided by your employer each payday. Some institutions may send out deposit confirmations, but this decision is left entirely up to the receiving financial institution. The amount and date of the deposit will be reflected on your account statement.

I consider how much money I make a confidential matter. Will this new service infringe on the confidentiality?

No. Your pay information that goes from your employer through the ACH network is highly secured. Because the processing is done directly by computer rather than being handled in several stages by various people, payroll data is actually more confidential under this system.

Is Direct Deposit Payroll a new idea?

No. Numerous Direct Deposit systems have been in existence for a number of years. In the past, however, an employee had to maintain his/her account at a particular institution to be able to participate in the program. Development of the Automated Clearing House system has made it possible for employers to offer Direct Deposit Payroll to their employees no matter where they maintain their accounts.