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> Here in Australia the employer generally can never reverse funds out.

Not sure of the logistics but in USA direct deposit or ACH can be reversed without any authorization from the account holder.

One of my clients erroneously deposited somebody else's payment into my account, when I let them know they said they would fix it, I was surprised it didn't require any authorization from me, but it was gone the next day.

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Probably silly question. But is there any benefit then in always quickly moving your funds out as soon as they come in?

1. What if I quickly withdrew the funds as cash (inconvenience aside)

2. If I transferred (auto-transferred) the funds to a second account be it same bank or different bank. What then?

The safest approach is to immediately cash the check at a branch of the bank on which the check is drawn. It's more difficult for bankruptcy trustees to claw back cash (although in theory they may have the legal right to do so in some cases). Unfortunately some banks will no longer cash their own checks if you don't have an account there.

You get charged a negative account balance penalty

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