If you offer a direct deposit option for employee payroll checks, you'll need to set up direct deposit information for the employee bank accounts. First, you'll need to set up direct deposit information for the bank accounts, then take the following steps. This willmake employee direct deposit and allocation information available for payroll check printing.
Select
Setup
, thenEmployees
.Select the
Employee
.If the employee will use International ACH Transations (IAT),you'll need to complete all of the
Addresses
section of theMain
tab.Select the
Direct Deposit
tab.Under Net Pay Distribution, use the
Deposit
dropdown tochoose how much employee's pay should be by direct deposit.
Under
Direct Deposit Allocation
, specify how the direct deposit amount to allocate to the employee's bank accounts.note
An employeecan have several bank accounts set up. You can base allocation percentage calculations on the total distribution or remainder of the distribution.
If this employee will use IAT:
Select the ellipsis button in the IAT column.
Specify that this direct deposit allocation uses
international format
.Set up the
US gateway operator
anddestination country
information.
Enter information for one or more bank accounts and specify an amount or percent to allocate to each.
note
There are some examples at the end of this help topic.
For new employees or new direct deposit bank account information, select
Prenote
in theStatus
column.note
After the bank has prenoted the account, change the bank account status to
Approved
. This will enable the applicationto createdirect deposit files.The
Status
options are:Approved
: you've set everything up and this vendor's bank account is ready for direct deposit.Needs authorization
:you've set everything up, but this vendor needs authorization before you can process direct deposit.Prenote
:you've set everything up, but this vendor's bank account information will be prenoted before live processing.Suspend
:you've set everything up, but this vendor doesn'tcurrently use direct deposit. This option saves the information for when the vendor uses direct deposit again.Waiting
:The bank account information has been prenoted. We are waiting for the prenote to be approved.
If you want to set up alternate direct deposit allocation information for an employee:
Mark the
Enable alternate direct deposit allocation
checkbox.Enter information in the grid.
If you want to usethe alternate direct deposit allocation, take the following steps:
Go to
Actions
, thenEnter Batch Payroll Checks
.Select
Edit
, thenOptions
.Mark the
Use alternate direct deposit allocation
checkbox for the selected payroll schedule.
If the employee is a paycard recipient, mark the
Paycard recipient
checkbox.Select
Enter
.
Setup example: Scenario 1
An employee always wants $100 deposited into a savings account, and 100% of the balance deposited into a checking account.
note
In this scenario, it doesn't matter if
Base allocation percentage calculations on
is set toTotal distribution
orRemainder of distribution
. This is because the application can't allocate more than is left over as a result of allocations in previous rows.In this example, if net pay is $1000, and $100 is deposited into savings, then $900 remains. Even though the second row indicates 100% of the total distribution, it will only take 100% of what is left over (in this example, $900).
Setup example: Scenario 2
An employee always wants $100 deposited into a savings account. They also want 50% of the remaining amount deposited into a different savings account. Whateveris left, they wantdeposited into a checking account.
note
In this scenario,
Base allocation percentage calculations on
needs to be set toRemainder of distribution
. This is because it's possible that more than 50% of the total distribution is left after the fixed $100 dollars is allocated. So, if the net pay was $1,000, then $900 remains after the $100 fixed amount. BecauseRemainder of distribution
is marked, the application allocates $450 (half of what's left). If theTotal distribution
checkbox is marked, then $500 is allocated to the second savings account.Setup example: Scenario 3
An employee wants half their check direct deposited in a savings account, and the other half on a paper check.
note
The Net Pay Distribution section is where you specify how much of the check should be direct deposited (in this example, only 50%). The percentage in the Direct Deposit Allocation section is set to 100%. This is because 100% of the amount to be direct deposited needs to go in the one savings account.
In this scenario, if you go to
File
,Print Checks
, there will be a payroll check with a partial direct deposit allocation to print. You'll need to print the check to send the check information to theProcess Direct Deposit
screen of theActions
menu.