A money movement authorization form, also called a Direct Debit Authorization Form, gives payroll the legal permission to automatically debit your bank account to pay your workers and remit taxes on your behalf.

Without this authorization, you would need to manually send funds after every payroll run. The authorization allows the payroll system to initiate ACH debits from your account automatically, making payroll more efficient and less error-prone for you.

In the US, bank-to-bank transfers are processed through the ACH (Automated Clearing House) network. There are two types of ACH transfers:

Because payroll requires pulling funds from your account, an ACH debit is used. Federal rules require explicit written authorization before any ACH debit can be initiated against your bank account. That authorization is what the money movement authorization form collects.

Your authorization is collected during the bank account verification step of payroll setup. It is also outlined in the Payroll Service User Terms and Conditions.

Once your bank account has been verified and authorization has been granted, payroll can automatically move funds from your account to pay your workers and remit taxes on your behalf.