Cash & Working CapitalTalking ShopTax

Talking Shop: Allowing Direct Debits for Payroll Tax

By February 25, 2021No Comments

Member question: “For those of you who use ADP for payroll in the US, do you allow them to do direct debits on your bank accounts, specifically for payroll tax payments?”
Peer answer 1: “We just converted to direct debit with ADP in the US. Happy to put you in touch with the team that evaluated and executed the project.”
Peer answer 2: “We allow direct debits for both payroll and payroll tax. We fund to a separate, stand-alone payroll bank account that is solely used for this activity.”
Peer answer 3: “We reverse wire and direct debit for payroll tax and payroll respectively.”
Peer answer 4: “We allow ADP to reverse wire from a dedicated payroll account. ADP offered no other option (‘take it or leave it’), and we only got comfortable by establishing a stand-alone account.”

Justin Jones

Author Justin Jones

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