What if I choose to pay my employees via check and direct deposit?

If you decide to pay your employees using both checks and direct deposits, you can choose this option. For instance, if you have multiple employees, some may prefer to be paid by check while others prefer direct deposit. In such cases, you can opt to use check and direct deposit methods to ensure that all employees receive their payments according to their preferences.

Direct deposit Payment: 

On choosing the direct deposit payment option, you will have two more options to pay your employees

Using Our Payment Partner - TaxBandits offers Kotapay, a trusted payment partner that securely handles direct deposits.

Steps to process payment with Kotapay:

• Create a Kotapay Account: You must create an account with Kotapay. To create an account, you must contact kotapay at 866-431-9926. Make sure you provide the required documents, EIN verification, bank account details, authorized signature form, and a copy of the signing officer's driver’s license.
  
  You must also choose the ACH preference window in Kotapay. Make sure you upload the ACH file based on the preference window selected here. To ensure smooth payment processing. To know more about Kotapay, Click here.
   
• Add your payroll Bank Details: After the successful creation of your kotapay account, you must provide the bank account details provided in the kotapay to TaxBandits. 
   
• Set ACH Upload Preference in TaxBandits: You must update the ACH preference window in TaxBandits by navigating to Settings → Payment Preference → ACH window preference.
   
• Generate & Upload ACH file: After processing payroll, you can download the ACH file and upload it to Kotapay based on your preference and allow Kotapay to process your payments securely.
   

Using Your Own Bank:

 If you choose to pay your employees using your own bank. You must manage the payments directly through the bank ACH System. 
 

Steps to process payments using your own bank

• Download the ACH file: Once payroll is processed, you can download the ACH file from TaxBandits.

• Upload it to Own Bank: Before you upload an ACH file to your bank. Ensure your bank provides ACH transactions. If this option is available, contact your bank to activate this service.

Currently, TaxBandits offers ACH processing for the following banks:

• Bank of America

• Citibank

• Wells Fargo Bank NA

• U.S. Bank

• Goldman Sachs Bank

• PNC Bank