Direct Deposit
Direct Deposit is an electronic process that employers can implement to make payroll funds available to their employees without having to write out a paper check. The employees receive their paycheck directly in a bank account that they own - on the day that they would normally receive their paper check. The electronic system that makes Direct Deposit available is called ACH or Automated Clearing House.


  1. The employer produces an electronic (computer) file of all its employees and what dollar amount they will be paid.
  2. The employer sends the computer file to the financial institution (The Baraboo National Bank) for processing before the payroll needs to be paid.
  3. The Baraboo National Bank then sends the payroll file to the ACH
    (Automated Clearing House) network system, in this case the Federal Reserve Bank of Chicago.
  4. The ACH network then sends the payroll information to each employee's bank to be deposited in the employee's account.
  5. The employee has the funds available to them on the day that they would normally receive a paper payroll check.

What's In It For Your Employee?

The biggest advantage to the employee is that they don't have to worry about getting to the bank to cash their paycheck! No more mad dash at lunch-time or after work to get money. The payroll dollar amount that would be due to them will be put right into their Savings or Checking account that they have at their own bank. Even if they're sick or on vacation on payday; if they have a paycheck coming to them, it's in there!



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