Set Up Direct Deposit to Generate ACH Files

Use this procedure if you are going to process direct deposit by generating an ACH file through Direct Deposit Interface Setup and sending the file to your bank(s). You must set up direct deposit options in Payroll Options and enter information for the bank account(s) that will be used.

Before You Begin

Work with your financial institution to determine its particular requirements. This would include a discussion of any fees, specifications, and paperwork required.

To set up direct deposit in Payroll Options

Select Payroll Setup menu > Payroll Options.
Select the Require Direct Deposit check box. For more information, see Payroll Options - Fields.
In the Direct Deposit Interface field, select Manually Send ACH File.
Select the Allow Partial Allocation of Check Amount check box to allow your employees to receive a portion of their net pay by direct deposit and have the remainder printed on a check. If you clear this check box, no partial checks will print, and any undistributed net pay will be deposited into the last approved bank account listed in the Direct Deposits window for the employee.
Select the Print Direct Deposit Stubs check box to print direct deposit stubs for participants who have 100 percent of their net pay allocated to direct deposit. Clear the check box to print voided checks instead. These information-only vouchers notify employees of the amounts being deposited.
If you will print direct deposit stubs, type a number in the Next Direct Deposit Stub Number field.
Select the Do Not Send a Pre-Note When Employee Number Changes check box if a pre-note is not needed when an employee number is changed.
In the Path for Direct Deposit File field, enter the path to the folder where you want the ACH files to be saved. If this field is empty, the ACH files will be saved in the ..\MAS90\PRxxx\ folder (xxx represents the company code).
Click Accept.

To set up your direct deposit bank(s)

Select Payroll Setup menu > Bank Code Maintenance.
Enter the appropriate bank code. For more information, see Bank Code Maintenance - Fields.
Click Direct Dep. TheDirect Deposit Interface Setupwindow opens.
Select the Direct Deposit check box, and enter the routing transit numbers. For more information, see Direct Deposit Interface Setup - Fields.
Click Accept.

Before you can begin using this account for direct deposit, it must be approved by your financial institution for direct deposit processing. After approval, the Pre-Note Approved check box must be selected. Consult with your financial institution about its direct deposit requirements for your company account.

The next step is to enter direct deposit information for your employees in P/R Employee Maintenance. See Set Up Employees for Direct Deposit to learn more.