Employer verified bank accounts

If your payroll application already collects and verifies employer bank accounts, you can provide your customers with a fully embedded payroll experience with Salsa. Integrating your existing bank account verification process with Salsa allows you to streamline the payroll process and avoid the need for employers to provide their bank account information again. By following the steps in this guide, you can sync and verify employer bank account information simultaneously through our Paystream APIs.

How it works

Verifying bank accounts is crucial to ensure payroll is processed accurately and on time, minimizing the risk of incorrect payments or delays.

• Payment authorization – Employer payment authorization is an acknowledgement from an employer that allows Salsa to debit an employer bank account. By default, Salsa collects this authorization during the onboarding process, prompting employers to explicitly authorize debits from their bank account during the bank account verification process.
• Account verification – Employer bank account verification is a process where Salsa initiates two small deposits and the employer confirms the exact debit amounts for the transactions. After a day or two when these “micro-deposits” appear on the employer's bank statement, employers “activate” their bank accounts by entering the two amounts in Salsa. If they match, the verification process is complete. By default, Salsa manages the bank account verification process on your behalf.

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Note

This guide is designed for organizations that already have a verification system in place that collects and verifies employer bank accounts. If your organization does not currently have such a system, you can leverage our onboarding component to collect, verify and authorize bank accounts.

Steps

The following steps describe how to integrate your existing verification process with Salsa’s Paystream APIs, ensuring compliance with Salsa policies and regulatory requirements.

1. Embed employer payment authorization

If your payroll application already collects and verifies employer bank accounts, prompting employers for payment authorization again on Salsa may be disruptive to employers. By running the following request, you can embed the Salsa payment authorization prompt within your payroll application. This allows you to leverage existing employer payment authorizations while ensuring compliance with Salsa’s authorization requirements. Alternatively, if you do not already have employer payment authorization, the authorization prompt will still appear for the employer.

You can embed the employer payment authorization prompt using the Paystream API by "upserting" the employer record. Here is an example:

{
  "data": [
    {
      "type": "PaystreamEmployerUpsertInput",
      "id": "er_12345",
      "bankAccount": {
        "id": "erbank_124345",
        "paymentAuthorization": {
          "acceptedAt": "2023-10-16T14:05:22Z"
        }
      }
    }
  ]
}

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Note

Salsa may request a record of the payment authorization that you obtained for an employer as required.

2. Embed employer bank account verification

If your payroll application already performs employer bank account verification or debits employer bank accounts, prompting employers to verify their account again on Salsa may be disruptive to employers. By running the following request, you can embed the Salsa employer bank account verification prompt within your payroll application. This allows you to leverage existing employer bank verifications while ensuring compliance with Salsa’s verification requirements. Take note that you need to contact us to enable the feature to bypass bank account verifications.

You can embed the bank account verification prompt using the Paystream API by “upserting” the employer record. Here is an example:

{
  "data": [
    {
      "type": "PaystreamEmployerUpsertInput",
      "id": "er_12345",
      "bankAccount": {
        "id": "erbank_124345",
        "verification": {
          "organizationVerifiedAt": "2023-10-16T14:05:22Z"
        }
      }
    }
  ]
}

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Note

Salsa may request a record of the bank account verification used to verify the employer bank account as required.

3. (Optional) Embed employer bank account verification and payment authorization

Alternatively, you can embed both the payment authorization and bank account verification prompts using the Paystream API by “upserting” the information in a single request. Here is an example:

{
  "data": [
    {
      "type": "PaystreamEmployerUpsertInput",
      "id": "er_12345",
      "bankAccount": {
        "id": "erbank_124345",
        "paymentAuthorization": {
          "acceptedAt": "2023-10-16T14:05:22Z"
        },
        "verification": {
          "organizationVerifiedAt": "2023-10-16T14:05:22Z"
        }
      }
    }
  ]
}

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Info

When using this feature, you may want to consider hiding the bank account card from employer profiles and onboarding elements.