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['Compensation']
['Payroll', 'Compensation']
11/11/2025
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State Info
Direct deposit provisions - Indiana
Indiana law considers direct deposit to be an acceptable method of wage payment and private-sector employers in Indiana may require employees to be paid by direct deposit.
Indiana has transitioned entirely to electronic payroll for state employees. All employees must establish direct deposit as a condition of employment. Employees who do not provide banking information for direct deposit will have their wages issued through a prepaid debit card.
Related information
Citations
- Indiana Code Section 22-2-5-1(a)
- Indiana Code Section 4-15-5.9-2
- I.C. 4-13-2-7(5)
- Indiana State Personnel Dept. – New Employee Paperwork
- 15 USC 1693 et seq. — Electronic Funds Transfer Act (EFTA)
- 12 CFR Part 1005 — Electronic Fund Transfers (Regulation E)
- FOH Chapter 30 RECORDS, MINIMUM WAGE, AND PAYMENT OF WAGES (U.S. DOL – page 11, Sec. 30c)
- 29 CFR 531.35 — “Free and clear” payment; “kickbacks”
['Compensation']
['Payroll', 'Compensation']
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