Process Payroll when Manually Sending Direct Deposit (ACH) Files to Bank

Use this procedure to process payroll if you have set up direct deposit with the Manually Send ACH File option selected in Payroll Options.

Before You Begin

You must set up direct deposit before processing payroll with direct deposit. For more information, see Set Up Direct Deposit.
To process payroll without direct deposit, see Process Payroll.

To process payroll using the manual direct deposit method

Select Payroll Main menu > Payroll Data Entry.
In the Pay Cycle window, select payroll cycle data, such as the period-ending date, voluntary deductions to be applied, standard days and weeks worked, and the standard earnings code. For more information, see Pay Cycle - Fields.
To select groups of employees with standard earnings and deductions for processing using the Auto Pay window, click Auto Pay. For more information, see Auto Pay - Fields.
Enter earnings and deductions for employees with nonstandard hours (overtime pay, sick pay, etc.) using the Selective Payment Entry feature.
To enter earnings, deductions, and tax data for any manually written checks issued during the current pay cycle using the Manual Payroll Tax Entry window, click Taxes. For more information, see Manual Payroll Tax Entry - Fields.
To calculate withholding taxes for each check using Payroll Tax Calculation, click the Print button. In the Payroll Tax Calculation window, click Proceed.
When prompted to print the Payroll Data Entry Audit Report, click Yes. Verify the direct deposit distributions calculated for your employees on the Payroll Data Entry Audit Report. Direct deposit amounts display on the report, along with employee check information. If the direct deposit information is incorrect, return to the Direct Deposits window in Employee Maintenance, make corrections to the employee's distribution, perform Payroll Tax Calculation again, and print the Payroll Data Entry Audit Report to verify the amounts.
Select Payroll Main menu > Check Printing.
Print the payroll checks. During Check Printing, you must enter an effective date. This is the date that funds are scheduled to be available in your company account for transfer to the employee's accounts (the date that direct deposit takes place). This date may need to be adjusted to allow for weekends and holidays, as your financial institution instructs. After the Check Printing process is completed, you are prompted to print direct deposit stubs if the Print Direct Deposit Stubs check box is selected in Payroll Options. For more information, see Payroll Check Printing - Fields.

Note Do not attempt to produce a payroll check for any employee whose record is incorrect or incomplete. Use Employee Maintenance to correct or complete all employee records before printing payroll checks.

Select Payroll Main menu > Check Register/Update to print the Check Register and update the permanent payroll files using the Check Register/Update task. For more information, see Check Register/Update and Check Register/Update - Fields.
After the Check Register prints, you are prompted to print a Direct Deposit Register. At this time, you can enter a direct deposit comment for the current payroll batch. This comment defaults to the current payroll period-ending date; however, you can make another entry. This comment appears on the employee's bank statement and prints in the Bank Reconciliation module to identify this particular deposit.
Select Payroll Main menu > Daily Transaction Register to print the Daily Transaction Register and update the payroll postings to the general ledger.

After processing payroll, submit the ACH file to your bank. For more information, see Generate a Direct Deposit Interface File.