Direct Deposit

Indiana University pays its employees via electronic funds transfer (also known as direct deposit) to the U.S. financial institution(s) designated by each employee. Payroll direct deposit is a convenient, secure, fast, and cost-effective method for delivering wage and salary payments. Direct deposit ensures employees receive their pay even if they are away from work due to travel, illness, or leave. Employees can direct their pay to the checking account(s), savings account(s), or 529 educational savings plan(s) of their choice through direct deposit. You can learn more about direct deposit by visiting our FAQ page.

Before You Begin

Before you begin setting up your direct deposit, please have your bank’s routing number and your account number(s) handy. Please be sure to use your bank account number, not your debit card or credit card number. 

The image below is an example of a routing and account number. The first group of numbers, labeled "1", represents the routing number. The second group of numbers, labeled "2" represents the account number.

 example image of a check with routing and account numbers

The direct deposit system will validate routing numbers, but it cannot validate account numbers. Therefore, you must be certain that you input your information correctly. If you enter the wrong account number, your direct deposit could be rejected, or your paycheck could be deposited into someone else’s account. The university might not be able to recover your pay for you.

What Do You Want to Do?

Set up My Initial Direct Deposit Account

To set up your direct deposit account, follow these instructions:

  1. From One.IU, select the Employee Center.
  2. Click Payroll and Tax on the Employee Self Service page.
  3. In the left hand menu, select Direct Deposit.
  4. On the Direct Deposit Services page, read the statement and click on the Payroll button at the top.

  5. Your name will appear at the top of the Direct Deposit window. You will see field names, but no information will be in the lines below.

  6. Click the Add Account button.
    • Enter your bank routing number and account number, but do not use special characters such as * or -. 

    • Select the Account Type (Checking or Savings). 

  7. Check the Payroll: Authorization (ACH Credit) statement box at the bottom of the page. 
  8. Click Submit under the Distribution Instructions section.

You will see a confirmation message telling you that your set up was successful. You will also receive an email stating that your IU direct deposit account was created.

Change My Account Information

You can only make changes to your direct deposit once a day. Do not click the Add Account button to change an existing account.

Every employee must have a Balance of Net Pay account. You can change, but not delete, a Balance of Net Pay account. As the name implies, the Balance of Net Pay account is the account into which the balance of your net pay will go after deposits are made into any other accounts you specify. If you add more than one account, you will have to designate one of your accounts as the “Balance of Net Pay” account.

To change your direct deposit information, follow these instructions:

  1. From One.IU, select the Employee Center. 
  2. Click Payroll and Tax on the Employee Self Service page.
  3. In the left hand menu, select Direct Deposit. You will see your current direct deposit account(s).
  4. Click Edit next to the account you wish to change. Type over the existing routing number or account number with your new banking information. When entering your bank routing number and account number, do not use special characters such as * or -.
  5. Scroll down and check the box beside “I agree to the above terms and conditions."
  6. Click Submit under the Distribution Instructions section.

You will see a confirmation box telling you that your change was successful. You will also receive an email stating that your IU direct deposit account distribution was changed.

Add Additional Account(s)

You can deposit your pay into multiple accounts by using the Add Account button to create multiple direct deposit accounts. You can also control how much to deposit into each account by either dollar amount or percentage.

One of your accounts will be your “Balance of Net Pay” account. As the name implies, the Balance of Net Pay account is the account into which the balance of your net pay will go after deposits are made into any other accounts you specify. If you add more than one account, you will have to designate one of your accounts as the “Balance of Net Pay” account.

To add a new account for your direct deposit, follow these instructions:

  1. From One.IU, select the Employee Center.
  2. Click Payroll and Tax on the Employee Center Self Service page.
  3. In the left hand menu, select Direct Deposit.
  4. Your name will appear at the top of the Direct Deposit window.
  5. Click the Add Account button.
    • Enter your bank routing number and account number, but do not use special characters such as * or -.
    • Select the Account Type (Checking or Savings) and the Deposit Type (Amount or Percent).
    • Indicate the amount or percent of your pay you want deposited into your account, and then select the Deposit Order for the account (the lower the number entered in the Deposit Order field, the higher the priority that account will have when funds are deposited).
  6. Check the Payroll: Authorization (ACH Credit) statement box at the bottom of the page.
  7. Click Submit under the Distribution Instructions section.

You will see a confirmation message telling you that your change was successful. You will also receive an email stating that your IU direct deposit account distribution was changed.

In the example below, $500.00 of this employee's paycheck will be deposited into the first checking account, which is listed as Deposit Order 2. Next, 10% of the check will be deposited into a savings account, listed as Deposit Order 3. The remaining net pay balance will be deposited into a second checking account. The Balance of Net Pay account will always be listed as Deposit Order 999.

Example image of multiple direct deposit accounts

Delete a Direct Deposit Account

Every employee must have a Balance of Net Pay account. You can change, but not delete, a Balance of Net Pay account.

To delete a direct deposit account other than a Balance of Net Pay account, follow these instructions:

  1. From One.IU, select the Employee Center.
  2. Click Payroll and Tax on the Employee Center Self Service page.
  3. In the left hand menu, select Direct Deposit. You will see your current direct deposit accounts.
  4. Click the trash can icon in the "Remove" column.
  5. A Delete Confirmation window will open. Click the Yes - Delete button.
  6. Click OK in the Save Confirmation window.

You will see a confirmation message telling you that your change was successful. You will also receive an email stating that your IU direct deposit account distribution was changed.

Fund a 529 Plan

It is easy to fund a 529 educational savings account through direct deposit. All you need is the 529 plan’s routing number and your 529 account number. To learn more about 529 plans and how to set them up, please visit IU's 529 College Savings Plan page.

To fund a 529 plan by adding a new account for your direct deposit, follow these instructions:

  1. From One.IU, select the Employee Center.
  2. Click Payroll and Tax on the Employee Self Service page.
  3. In the left hand menu, select Direct Deposit.
  4. Your name will appear at the top of the Direct Deposit window.
  5. Click the Add Account button.
    • Enter the 529 plan routing number and 529 account number, but do not use special characters such as * or -.
    • Select the Account Type (Savings) and the Deposit Type (Amount or Percent).
    • Indicate the amount or percent of your pay you want deposited into your account, and then select the Deposit Order for the account (the lower the number entered in the Deposit Order field, the higher the priority that account will have when funds are deposited).
  6. Check the Payroll: Authorization (ACH Credit) statement box at the bottom of the page.
  7. Click Submit under the Distribution Instructions section.

You will see a confirmation box telling you that your change was successful. You will also receive an email stating that your IU direct deposit account distribution was changed.

Discontinue My Direct Deposit

Direct Deposit for payroll is required for IU faculty and staff. If you need to discontinue Direct Deposit for your paychecks, please contact FMS Customer Service via the online support form to discuss your situation. You may also contact FMS Customer Service by calling (812) 855-0375.