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Run the Payroll Fee Auditor →Blog · Payroll Management · E-Commerce
E-Commerce & DTC Brands: Setting Up Direct Deposit (2026)
Direct deposit for an e-commerce company is set up once per employee with a bank authorization, prenoted, then paid through ACH on the pay schedule the state allows, with seasonal workforce spikes and multi-state nexus payroll tax settling on the same file. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Setup for e-commerce companies
Each employee signs a direct deposit authorization with routing and account numbers, the account is prenoted with a zero-dollar test before the first live deposit, and split deposits are recorded per employee. Federal law does not let an employer make direct deposit mandatory to a bank of the employer's choosing, and most states require a paper or pay card alternative for employees who do not opt in.
A business is covered by the FLSA as an enterprise when it has at least two employees and an annual dollar volume of sales or business done of at least $500,000. Even without enterprise coverage, individual employees are covered when their work regularly involves interstate commerce, such as handling goods that will be shipped out of state.
Timing and the e-commerce company pay cycle
The ACH file goes two banking days before payday for the funds to land on the date, which means hours for warehouse staff and customer service reps close earlier than the payday itself, and seasonal workforce spikes for the period is settled on that file or on a documented later settlement date. Off-cycle runs, final checks and corrections use same-day ACH where the bank supports it.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- A business is covered by the FLSA as an enterprise when it has at least two employees and an annual dollar volume of sales or business done of at least $500,000. Even without enterprise coverage, individual employees are covered when their work regularly involves interstate commerce, such as handling goods that will be shipped out of state. [DOL Fact Sheet #14]
Read the full guide to how to set up direct deposit, and the rest of the e-commerce company payroll library.
Managed Payroll, Handled.
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Frequently Asked Questions
Can an e-commerce company require direct deposit?
Federal Regulation E bars an employer from requiring deposit to a particular bank; the employee chooses the account. Many states add that a no-fee alternative must be offered, so a written opt-in with an alternative is the safe policy.
When does the e-commerce company pay file have to be released?
Two banking days before payday for standard ACH. Same-day ACH is available for off-cycle runs and corrections at a higher per-item cost. A business is covered by the FLSA as an enterprise when it has at least two employees and an annual dollar volume of sales or business done of at least $500,000.
What does managed payroll cost for an e-commerce company?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Seasonal workforce spikes, multi-state nexus payroll tax and contractor vs W-2 for fulfillment are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including E-Commerce & DTC Brands. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: IRS: Understanding Employment Taxes
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