Set Up Direct Deposit to Work with a Third-Party Program

If you are using a third-party direct deposit solution, use this procedure to 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 Other.
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 either direct deposit stubs or voided checks for participants who have 100 percent of their net pay allocated to direct deposit. 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 needed.
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 Informationwindow opens.
Enter the bank account number, bank name, account type, routing transit number, and indicate that a pre-note has not yet been approved by clearing the Pre-Note Approved check box. For more information, see Direct Deposit Information - Fields.
Click OK.

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.