Setting Up Direct Deposit in Patriot Software

Background

As a Patriot Software Payroll customer, you can offer direct deposit as an affordable, convenient way to deposit employee or contractor pay directly into their own bank accounts without the need to print paper paychecks.  

You will need to use a commercial/business bank account in order for Patriot to withdraw funds to pay your employees with direct deposit. Personal bank accounts are not able to be used.

There is a four-day lead time with regular ACH funding. You can also send a bank wire or choose our prefunding option. For more details, see Direct Deposit Funding and Timing Options.

How to Add Direct Deposit in Patriot Software

If you are a new customer, setting up your account in the payroll wizard, you will be asked how you want to pay your employees:  

1. With handwritten or printed checks
2. With direct deposit
3. With a combination of paychecks and direct deposit

After you have completed the setup wizard, you can sign up for direct deposit by going to Settings > Payment Settings > Direct Deposit Settings.

Here’s a closer look at the signup process:

Step 1:  Verify the Business Owner Personal Identity

Enter your own personal information as the business owner or officer.  

You will need to enter:

• Business owner’s name
• Business owner’s current home address
• Business owner’s Social Security Number,
• Business owner’s date of birth
• Business owner’s government-issued ID information, such a driver’s license 

We use this information to confirm “you are who you say you are.” If you have already been approved for Full-Service Payroll Tax Service, you have already completed this step, and won’t see it again. Please read our help article, “Failed Identity Verification.“

Step 2:  Additional Company Information

• Enter the business NAICS code. This is a 6-digit number that identifies your business industry. You can search for your code on the NAICS website. You can also enter a description of the nature of your business in addition to or instead of your NAICS code. 
• Enter your business website address, if you have one.
• Confirm the contact information is correct.
• Enter additional contact information if there are others at your business who are authorized to discuss direct deposit issues with Patriot Software.

Step 3:  Verify the Business Bank Account

Important! You will need a business or commercial bank account to use direct deposit.

Patriot uses Plaid to instantly verify the bank account you want to use for direct deposit ACH withdrawals. If you have already completed this step as a Full-Service Payroll customer for tax payments, you will skip this step.

You will use the same bank account for both direct deposit and tax payments. If you choose to manually verify your bank account by having Patriot deposit and withdraw a small amount of pennies, you will need to enter the penny amount in order to continue your direct deposit application.

Step 4:  Upload Documents

1. Upload Bank Statement: You will need to upload a copy of your commercial/business bank account statement. You may not use a personal bank account for direct deposit. 

If you do not have a bank statement showing that the bank account is a commercial bank account, you can submit a letter from your bank. The letter should be on bank letterhead and contain the following:

• Bank name
• Company name/owner’s name
• Account type and account number
• Date
• Name and phone number of banker signing the letter

2. Occasionally you will need to upload a proof of Federal EIN:  If our team is not finding your information or finding conflicting information using our third-party identification tools, you may be asked to upload documentation confirming your 9-digit business federal employee identification number. 

Step 5: Application Acknowledgement

Check the box to affirm you have the authority to submit your business direct deposit application.

Once you have submitted your direct deposit application, our underwriting team will review the information you have submitted within 10 business days. Realistically, you will hear from us sooner to confirm your approval for direct deposit. If you have questions, please email [email protected].

Once you have been approved, the next time you log in to the software, you will need to turn on your direct deposit by clicking “Yes” to the question, “Would you like to turn the direct deposit on?” Add your employee direct deposit account information on their record or your employee can add their banking information in their portal and begin to run direct deposits payrolls. Any payrolls run after employee direct deposit information is added either by you as the admin or direct deposit banking information added by the employee in the portal, will have the employee payroll processed through direct deposit. It is important to note that payrolls run BEFORE direct deposit information was entered will not have direct deposit added retroactively. You’ll need to void and reprocess any payrolls that were run before the direct deposit was active and banking information was entered.

See the help articles:

Direct Deposit Funding and Timing Options
Adding Employee Direct Deposit Info in Patriot Software   
Using Direct Deposit in a Payroll