Direct deposit authorization form
A direct deposit authorization tells payroll where to send an employee's pay and gives you written permission to put it there. This template handles one account or a split between two, later changes, and fixing a deposit made in error. Read it below, then send it behind an access code so the bank details stay private.
Updated November 5, 2026 · 4 min read
The contract
Gray blanks are yours to fill in before you send. Each signer fills in the blanks in their color.
- You, before sending
- Employee
- Payroll administrator
Direct Deposit Authorization
Employer: Employer name (the "Employer"). Employee: Employee name. Employee ID: Employee ID.
This form is (tick one):
- A new direct deposit authorization.
- A change to my existing authorization. It replaces the earlier one.
- A cancellation. Please pay me by the backup method in section 5 instead.
1. Authorization
I authorize the Employer, and any payroll provider acting for it, to deposit my net pay by electronic transfer into the account or accounts below, starting with the first payroll on or after Start date. This includes regular pay, overtime, expense reimbursements paid through payroll, and final pay, unless the law requires final pay to be made another way.
2. Primary account
- Bank or credit union: Primary bank name
- Routing number (9 digits): Primary routing number
- Account number: Primary account number
- Account type: Checking Savings
3. Second account (optional)
- Bank or credit union: Second bank name
- Routing number (9 digits): Second routing number
- Account number: Second account number
- Account type: Checking Savings
- Deposit to this account each pay period: a fixed amount of Second account amount or Second account percent percent of net pay. The rest of my net pay goes to the primary account. If a paycheck is smaller than the fixed amount, all of it goes to the primary account.
4. Deposits made in error
If the Employer deposits money into my account by mistake, for example a duplicate payment or an amount I was not owed, I authorize the Employer to reverse that deposit as the banking rules allow. If a reversal is not possible, I will work with the Employer on repaying the amount. The Employer will tell me before it acts, and it will not recover any amount from my wages except as the law allows.
5. How long this lasts
This authorization stays in effect until I change or cancel it in writing. I understand the Employer needs Days to process a change business days to act on a change, and that a payroll already being processed may still go to my old account. If my bank rejects a deposit or closes my account, the Employer will pay me by Backup payment method until a new authorization is in place, and I will not lose any pay because of the rejection.
6. Pay statements
I will be able to see my earnings statement for each pay period at Pay statement location. It shows my gross pay, deductions and the amount deposited to each account.
7. My choice
I chose to be paid by direct deposit. I was not required to open an account at any particular bank to work for the Employer, and I may ask to be paid another way the law allows. I confirm that I own or co-own each account above, or am authorized to receive deposits into it.
8. Privacy
The Employer will use these bank details only to pay me. It will share them only with its payroll provider and banks as needed to make deposits, and will keep this signed form where only the people who run payroll can see it. Questions about this form go to Payroll contact email.
9. Leaving the Employer
If my employment ends, this authorization covers my final pay and any later payments the Employer owes me, unless I ask in writing to be paid another way or the law requires final pay to be made by check. After my last payment, the Employer will stop using these details and keep this form only as long as its payroll records must be kept.
Employee phone: Employee phone
I have checked the account details above, and I have attached a voided check or a bank letter if the Employer asked for one.
Employee
For the Employer (payroll administrator)
Opens it in SignMaster as a template you can edit and send.
A starting point, not legal advice. Have a lawyer review it for your state and situation.
On this page
What the form does
Payroll can't move money into someone's account on a spoken instruction. The signed form gives you the routing number, account number and account type, the employee's permission to credit that account, and permission to reverse a deposit made by mistake. It also says how the employee changes or stops direct deposit, so a new bank account doesn't turn into a missed payday.
Collect it at hiring and whenever an employee switches banks. File the signed copy with payroll records rather than the general personnel file, because it holds account numbers that only the people running payroll need to see.
What the template covers
- New, change or cancel: one form for all three, with a tick box so payroll knows which it is.
- Primary account: bank name, routing number, account number, and checking or savings.
- Optional second account: a fixed amount or a percentage of each paycheck, with the rest going to the primary account.
- Start date: the first payroll the deposit applies to, set by you.
- Corrections: permission to reverse a deposit made in error, such as a duplicate, as banking rules allow, and no recovery from wages except as the law permits.
- Notice period: how many business days payroll needs to act on a change, and how pay arrives if a deposit bounces.
- Voluntary choice: the employee chose direct deposit and wasn't required to bank anywhere in particular.
- Privacy: bank details are used only for pay and shared only with the payroll provider and bank.
Mistakes that cause missed paydays
- Retyping numbers from a blurry photo. Let the employee enter them, and ask for a voided check or a bank letter so payroll can compare.
- Switching accounts the day before payroll runs. Set the notice period your payroll provider actually needs, and say it on the form.
- Emailing bank details around as an open attachment. Use an access code and store the signed copy where only payroll can open it.
- Making direct deposit a condition of the job without checking the rules. Federal Regulation E bars requiring an employee to open an account at a particular bank, and many states limit mandatory direct deposit.
- Leaving a split vague. Say whether the second account gets a fixed amount or a percentage, and which account gets the remainder.
Ask for proof of the account
In the template editor, add an Attachment field for a voided check or the bank's direct deposit letter. The employee attaches a photo while they sign, and it stays with the signed form.
How to send it with SignMaster
- 1
Open the template
Choose Use this template above. The employee is the first signer and your payroll administrator countersigns.
- 2
Fill in the payroll blanks
Add your company name, the employee ID, the start date, the notice period and how pay arrives if a deposit fails. The bank fields stay empty for the employee.
- 3
Require an access code
Bank details deserve more than an email link. Ask for a code you give the employee in person, or a one-time code SignMaster emails them, before the form opens.
- 4
The employee enters their bank
They type the bank name, routing and account numbers, pick checking or savings, attach the voided check if you asked for one, and sign.
- 5
Payroll signs and sets it up
Your payroll administrator signs last. Both of you get the signed PDF and its certificate of completion; set up the deposit from that copy.
Onboarding a whole crew
Starting a seasonal crew, or moving everyone to a new payroll provider? Bulk send makes one envelope per employee from a CSV of names and emails, and columns named Employee ID and Start date fill those gray blanks on each person's copy. Bulk send is on paid plans, up to 250 rows per send on Solo. The bank details still come from each employee, never from your spreadsheet.
Questions? Answers.
Is it safe to collect bank details through an e-signature form?
It's safer than an emailed attachment if you set it up well: require an access code, send it only to the employee's own email address, and keep the signed copy with payroll. Treat routing and account numbers as private either way.
Can an employer require direct deposit?
It depends on the state. Federal rules say you can't make someone open an account at a particular bank to get or keep the job, and many states require you to offer another way to be paid. Check with your state's labor department before making it mandatory.
Can we take back a deposit made by mistake?
Banking rules let an employer reverse an erroneous payroll deposit, such as a duplicate, within a short window. The form gives that permission in writing, but state wage laws still apply, so talk to the employee before you do it.
How does an employee change their account later?
They sign a new form with the change box ticked. The newest signed form replaces the old one once payroll has had the notice period to set it up.