All of the following steps are required when initiating direct deposit for an employee EXCEPT:

• A. Prenotification
• B. Receiving financial institution routing number
• C. Getting authorization from the employee
• D. Receiving employee's bank account number

Answer: (A)

Direct deposit setup centers on three essentials: obtaining the employee’s authorization to deposit wages, and collecting the bank routing number and the employee’s account number to know where to send the funds. A prenotification (pre-note) is a verification step used to test the account information with the bank before actual deposits are made. It helps catch miskeys or invalid accounts, but it isn’t something that must be done to initiate direct deposits in all cases. So the step that isn’t universally required is the prenotification. You can begin with authorization plus valid routing and account numbers, and then opt to run a prenote as a courtesy or risk-management measure if your payroll system or policy calls for it.