Direct Deposit Authorization Form
Reviewed for 2026 ·
Short answer
A direct deposit authorization form is the employee's written permission for an employer to pay wages into their bank account. It needs the employee's name, the bank's routing and account numbers, the account type, and a signature with the date. The employer keeps it on file and never sends it to the bank. A voided cheque or a bank-issued letter is normally attached so the account details can be checked against something the bank produced.
Who fills it in, and who keeps it
The employee completes and signs it; the employer files it. It is a consent record, which is why the signature is the part that matters — without it, an employer moving wages into an account has no documented authority to do so.
It does not go to the bank. The employer uses the details to build the payment file, and retains the form as evidence that the employee asked for it.
Federal rules allow employers to offer direct deposit, but several states restrict making it mandatory or require that the employee be able to choose the institution. Check your state before treating it as a condition of employment.
What the form must capture
Missing any of the first four means the payment cannot be built. The rest exist so errors are catchable before money moves.
- Employee name and identifier
- As it appears on payroll, plus an employee or payroll number where one exists.
- Routing number
- Nine digits identifying the institution. Take it from a cheque or a bank letter rather than a deposit slip — deposit slips sometimes carry an internal routing number that will fail.
- Account number
- The employee's own account. Worth confirming digit by digit; a wrong account number is the single most common cause of a failed or misdirected first payment.
- Account type
- Checking or savings. The payment file encodes these differently and a mismatch can reject.
- Split allocation, if offered
- Where an employee wants pay divided across accounts, a fixed amount or percentage per account, with one nominated to receive the remainder.
- Signature and date
- The authorisation itself. An undated form cannot be shown to predate the payments it authorises.
- Voided cheque or bank letter
- Attached so the account details can be verified against a document the bank produced rather than a number typed from memory.
Template
Completed by the employee and returned to whoever runs payroll. Attach a voided cheque.
DIRECT DEPOSIT AUTHORIZATION Employer: [Company name] Employee name: ______________________ Employee ID: __________ I authorise [Company name] to deposit my wages directly into the account below, and to reverse any amount credited in error. Bank name: ______________________________ Routing number: _________ (9 digits) Account number: ______________________________ Account type: [ ] Checking [ ] Savings Amount: [ ] Entire net pay [ ] $______ [ ] ______% This authorisation remains in effect until I cancel it in writing, and I understand cancellation must be received in time for payroll to act on it. Signature: ____________________________ Date: ______________ Attached: voided cheque or bank verification letter
A template, not legal advice. Employers should check their own state's rules on direct deposit before requiring it.
Never accept account details by text, chat or an email that simply asks payroll to change them. Redirecting wages by impersonating an employee is a common and effective fraud — confirm any change through a channel you already had on file, and require a fresh signed form rather than a message.
Common questions
Can an employer require direct deposit?
It depends on the state. Federal rules permit offering it, but several states restrict making it mandatory or require that employees may choose their own institution, and some require an alternative such as a paycard or cheque. Check your state before making it a condition.
Does the form go to the bank?
No. The employer keeps it on file and uses the details to build the payment file. The bank never sees it, which is why a voided cheque is attached — it lets the employer verify the numbers against something the bank produced.
How long before direct deposit starts?
Usually one to two pay cycles. Many employers run a zero-value prenote to validate the account first, which by convention takes a few business days before live payments begin.
What happens to direct deposit when someone leaves?
It varies by state and should not be assumed. California, for example, treats a previously authorised direct deposit as immediately terminated when an employee quits or is discharged, with final wages subject to separate timing rules.
The stub still has to follow
Paying by direct deposit does not remove the obligation to give an itemised statement — in most states the employee is entitled to one whether they were paid by cheque or transfer.
Open the pay stub generator