Manage company bank account details

Add a company bank account during onboarding 

While setting up your account, we’ll need your company bank account to debit for wages, taxes, and your monthly AutomotoHR fee.

  • Heads up: Your company bank account must be a US account and cannot be the same as an employee or contractor's bank account.

If you want to add or change a bank account after you’ve entered one, click the Add, change, or remove a company bank account (after onboarding).

Credit payments, credit cards, and savings accounts are not accepted—the account must be linked to a checking bank account in the US.  

  1. Click Step 7: Bank account.
  2. Click the Add Bank Account button.
    • If this button isn't clickable, you may need to refresh the page a few times until you can click it.
  3. Select how you want AutomotoHR to verify your bank account:
    • Verify account —you'll be asked to link your bank account to AutomotoHR so we can instantly verify your bank.
    • Manually verify your account—If your bank is not eligible for Instant Bank Verification, or you've decided not to use IBV, you'll need to enter your bank information in. We'll then send two test transactions which will hit your bank account in 1-2 business days. You'll need to enter the test transaction amounts in AutomotoHR later.
      • Click the checkbox to acknowledge this change may block payroll for up to 2 business days until bank verification is complete.
  4. Click Continue.
    • This bank account will automatically be set as your default bank account. You can add additional bank account later and change which is your default at any time.
      • Click the Add, change, or remove a company bank account (after onboarding).

If your bank is not eligible for Instant Bank Verification, or you've decided not to use IBV, you'll need to enter the two test transaction amounts in AutomotoHR. To do so, follow the steps below.

  1. Click the Company section and select Company details.
  2. Click Verify Now to enter the two amounts.

What's next? Add your pay schedule to AutomotoHR.

FAQs

Q: What if I don’t get the test transactions?

A: Either the account information was entered incorrectly or the transactions were entered incorrectly in AutomotoHR. If the verification doesn't work, you'll be emailed with a request to make changes to your account details for proper bank setup.

Q: Can I add multiple company bank accounts?

A: Yes—you can add multiple bank accounts and individually select which bank account to use on payroll(s) and contractor payments.

Q: What is Instant Bank Verification (IBV)?

A: IBV is an easy way to instantly connect your bank account to AutomotoHR. We use the same technology that banks use to keep your account information safe so everything you provide is protected.

Q: Does AutomotoHR support alphanumeric bank accounts?

A: Yes. We allow users to use bank accounts with both letters and numbers.

 

Add, change, or remove a bank account (after onboarding)

Before you can pay your team with a new bank account, we'll need to verify your new bank account before it can be fully set up and applied in AutomotoHR.

Reminders

Until the new account has been verified, we'll use the bank elections that are in place at the time a payment is processed (manually or using Payroll ). 

  • For payrolls already processed, adding a new account while the money is in-flight will not change the bank account that was used. If we receive a bank error from the account on file at the time a payroll was processed, you'll be charged a debit failure fee, and you may be moved to a slower direct-deposit speed. 

If eligible, you can use instant bank verification to get set up right away. If you do not use instant bank verification, you'll get two test transactions sent to your account for verification—this may take 2-3 business days.

  • If you have tax-advantaged accounts with AutomotoHR (like FSAs, HSAs and/or commuter benefits), you’ll see a non-refundable $1 test debit under "MBI/Med-I-Bank".
  • If you offer an HSA, you’ll see an additional $0.01 test debit.

Company bank account requirements

  • Must be a US bank checking account.
    • It cannot be the same as an employee or contractor's bank account.
  • Credit payments and credit cards are not accepted

 

What to know before you add multiple bank accounts or change your default bank account

  • Permissions—only admins with the below permissions can add, remove, or assign bank accounts to specific payrolls or payments:
    • “Full access” admins
    • Admins who can “Run payroll”
    • Admins who can “Pay contractors”
  • Remember the last 4 digits of bank accounts—if you have multiple banks verified, remember the last 4 digits for when you want to assign a bank to specific payrolls/payments—at this time, you can’t add nicknames to the accounts.
  • Default bank info
    • We use the "default" bank account for:
      • Your monthly invoice
      • General payroll and contractor payments (unless otherwise specified)
      • Workers' comp debits (from NEXT insurance)
      • Tax-advantaged accounts: FSA, HSA, DCFSA, and commuter benefits.
      • Payroll on AutoPilot, unless you set up a different bank account (learn more below).
      • Refunds or debits related to wage corrections, tax reconciliations, cancellations, etc
    • If you change your default bank account, until the new account is fully verified and set up, your current default bank account will be used for all standard debits (examples listed in the bullet above).
      • Once verified, the new default bank account will be used for all of the above. 
  • Payroll reversals—if funds need to be debited or credited to the company as a result of a reversal, we'll use the bank account associated with the payment (so long as the bank account is still active in AutomotoHR).
    • If you’ve removed the account, we’ll send the money to the default account.

 

Add additional bank accounts

  1. Sign into your admin account.
  2. Head to the Company section and select Company details. 
    • If you don't see this section in your account, you may not have the required permissions. 
  3. Scroll to the “Bank Accounts” headline and click Add bank account.
  4. Enter in the new Routing Number and Account Number.
  5. Click the checkbox to acknowledge this change may block payroll for up to 2 business days until bank verification is complete.
    • Until the new account has been verified, we'll use the bank elections that are in place at the time a payment is processed (manually or using Payroll on AutoPilot).
      • For payrolls already processed, adding a new account while the money is in-flight will not change the bank account that was used.
  6. Click Continue.
  7. To securely and instantly verify your bank account, click Verify Bank Account—you'll be asked to link your bank account to AutomotoHR.
    • You can also select to verify your bank account manually with two microtransactions, this could take up to 2 business days.

If you have multiple bank accounts verified in AutomotoHR, you'll need to remember the last 4 numbers of the bank account(s) you want to use when making payments—at this time, you can’t add nicknames to the accounts.

 

Change the default bank account

AutomotoHR uses your "default" bank account for the below:

  • Your monthly invoice
  • General payroll and domestic contractor payments (unless otherwise specified)
  • All international contractor payments. 
  • Workers' comp debits/premiums (from NEXT insurance)
  • Payroll on AutoPilot, unless you set up a different bank account (learn more below).
  • Refunds or debits related to wage corrections, tax reconciliations, cancellations, etc

 

Change your default bank account

Until the new bank account is fully verified and set up, your current default bank account will be used for all standard debits and prior payrolls processed. If we receive a bank error from the account on file at the time a payroll was processed, you may be moved to a slower direct-deposit speed. 

  1. Sign in to your admin account.
  2. Head to the Company section and select Company details. 
    • If you don't see this section in your account, you may not have the required permissions. 
  3. Scroll to the “Bank Accounts” headline, find the bank account, and click Manage.
  4. Click the checkbox to Set as default account for payments.
  5. Click Save and close.

 

Assign a bank account to a Payroll on AutoPilot (for multiple bank accounts only)

If your company uses Payroll on AutoPilot, we'll debit from the “default” bank account unless you assign a different account. 

Assign a specific bank account for Payroll on AutoPilot

  1. Click the Payroll section and select Payroll settings.
    • If you don't see this section in your account, you may not have the required permissions. 
  2. Next to the AutoPilot section, click edit.
  3. Select the desired bank account from the dropdown box.
  4. Click Save.

Going forward, Payroll on AutoPilot will debit funds from the selected bank account.

 

Remove a bank account

If you choose to delete a bank account from which payments are scheduled in the future, we’ll warn you that the future payments will be canceled and you’ll need to reschedule the payments again. 

  1. Sign in to your admin account.
  2. Head to the Company section and select Company details. 
    • If you don't see this section in your account, you may not have the required permissions. 
  3. Scroll to the “Bank Accounts” headline, find the bank account you'd like to remove, and click Manage.
    • If you don't have another bank account verified already, you'll need to add, verify, and set an alternate bank account as the default before deleting this account.
  4. Click Delete.

 

FAQs

Q: Can I add multiple company bank accounts?

A: Yes—you can add multiple bank accounts and individually select which bank account to use on payroll(s) and contractor payments.

Q: I paid people from the wrong account, what do I do?

A: If AutomotoHR has not already debited your account, you can cancel the payroll or contractor payment and reschedule the payment from the right bank account. 

If AutomotoHR has already debited the bank account, you’ll want to contact your bank to transfer the required funds into the bank account.

Q: Can we split the payments between multiple bank accounts?

A: No. All payments come from one bank account. If you want to split payments, we suggest running multiple payrolls and selecting different bank accounts for each.

Q: Can we have a bank account associated with each employee? 

A: No—but you can allocate employees to departments and set up pay schedules per department and then each pay schedule can have a bank account associated with it.

Q: Does AutomotoHR support alphanumeric bank accounts?

A: Yes. We allow users to use bank accounts with both letters and numbers.

 

Bank transactions and code glossary

We'll initiate 3 separate debit transactions from your company's bank account after each payroll is submitted:

  • One for employee pay (who are being paid by direct deposit)
  • One for your employee reimbursements
  • One for all payroll taxes

These transactions will happen at the same time, 3 business days before payday. Employee pay and reimbursements will be submitted for direct deposit payments, and we'll send your payroll tax amounts to the applicable state and federal agencies.

You may also see debit transactions from your company's bank account for:

  • Contractor payments
  • Monthly invoices
  • Historical tax payments

You can run reports to view bank transactions and to see which taxes we've paid on your behalf.

Check out this list of the types of reports you can run.

Bank codes related to debits and/or credits from AutomotoHR 

Code Transaction Type
EBV Electronic Bank Verification - Credit Test Transaction
NET Debit Net Pay
TAX Debit Tax
CON Credit Contractor Pay
ICD International Contractor Pay
HPT Debit Historical Payroll Taxes
BBV Bank Verification Debit
BVC Bank Verification Credit
FRP Credit Flex Repayment (Modern Bank)
FPP Credit flex pay principal (Modern Bank)
FPF Credit flex pay fee (Modern Bank)
TLR Credit Tax Liability Refund 
CSC Credit Child Support Garnishment
REM Debit Reimbursement
TCD Debit Tax Correction
FEE Debit Payroll Fee
CND Debit Contractor Pay
RFD Debit Refund
PDR Debit Employee Wages
DDR Debit Donation
CSD Debit Child Support Garnishment 
DOV Debit Overpayment
FPD Flex Pay Debit (Modern Bank)
PAY Credit Employee Pay
INV Credit Payroll Fee - Invoice Refund
SAV Credit Employee Savings
CRF Credit Contractor payment refund
DCR Credit Donation
PAR Credit wages refund
TRC Credit Tax Refund
TAX DEP Tax Department Payment
IEE Credit Internal Error Expense (concessions)
TXP Credit Tax
TPI Credit Tax Penalty
WPF Wire Payment Fee
ITC Credit Internal Transfer Contractor Pay
ITE Credit Internal Transfer Employee Pay
ITT Credit Internal Transfer Tax Payment
ITF Credit Internal Transfer Fees and Penalties
ITV Credit Internal Transfer Verification
ITI Credit Internal Transfer Invoices
ITO Credit Internal Transfer Other
ITP Credit Internal Transfer Overpayment
ITG Credit Internal Transfer Child Support Garnishment
COV Credit Overpayment
PRS Credit Partner Revenue Share