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Language Foundation

direct deposit

Direct deposit is a payroll payment method in which an employer pays wages by transferring the money electronically directly into an employee’s bank account.

In plain English

This means pay is sent straight to a worker’s bank account by electronic transfer. It names a way an employer delivers wages directly into that account.

In context

Here, it labels the payroll payment method in which the employer sends wages electronically into the employee’s bank account.

Situation
Completing employee onboarding, payroll setup, policies, and mandatory forms
What it communicates
labels the payroll payment method that sends pay to a bank account.

Meaning limits

The term alone does not identify the specific bank account that receives the wages.

Examples

“New staff can choose direct deposit instead of picking up a paper pay cheque on Fridays.”

Core meaning

“The company pays office staff by direct deposit.”

In context

  • electronic funds transfer Broader Term

    Direct deposit is one kind of electronic transfer of money.

  • paper check Contrast

    A paper check delivers wages by a physical check instead of by electronic transfer into a bank account.