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 Overview

Use the following procedure to enter direct deposit information for employees, including their bank account information, distribution method, and prenote status.

 Before You Begin

• Make sure that direct deposit is set up. For more information, see Set Up Direct Deposit.

• Gather your employees' banking information, including:

• The bank account numbers and routing numbers for the accounts to be used for direct deposit. Each employee can specify up to 8 separate accounts.

• How they want to distribute their pay if they designate multiple accounts. The available options are a percent of net pay, a percent of gross pay, and a fixed amount.

• If they designate multiple accounts, which is the primary account, which is the secondary account, and so forth so that pay is correctly distributed.

 

To set up employees in Employee Maintenance

1. Select Payroll Main menu > Employee Maintenance.

2. Enter the employee number and select the Direct Deposit check box. For more information, see Employee Maintenance - Fields.

3. Click the arrow in the top-right corner of the screen, and select Direct Deposit.

4. In the Employee Direct Deposit window, enter each of the accounts that the employee wants to use for direct deposit. For more information, see Direct Deposits - Fields.

   If you are entering more than one account, see the Distributing Pay to Multiple Accounts section of this article.

5. Click Accept.

The next step is to send pre-notes to the employees' banks. Each employee must have an approved prenote before he or she can be paid by direct deposit. See Send Pre-Notes for Approval Using the Sage 100 Direct Deposit Service.

Distributing Pay to Multiple Accounts

The last account entered is a catchall for leftover funds. If the Allow Partial Allocation of Check Amount check box is selected in the Payroll Options window, any remainder of the net pay not distributed to these accounts is printed on a check. If none of the accounts are approved for direct deposit, the entire net pay amount is printed on a check.

If the Allow Partial Allocation of Check Amount check box is cleared, (all funds must be deposited somewhere, and no check is printed for an employee who is using direct deposit), the last approved account entered will be the destination of any funds not already distributed to the previous accounts.

For example, an employee may want to deposit $50.00 of each paycheck to a Christmas club account, $200.00 of each paycheck to a savings account, and 100 percent of the remaining net pay to a checking account. Set up the accounts in this order:

Account	Distribution Method	Amount or Percent
Christmas club	Fixed Amount	50.00
Savings	Fixed Amount	200.00
Checking	Percent of Net Wages	100%

Generally speaking, any funds left over after the distribution to the Christmas Club and savings accounts will be distributed to the checking account (assuming the prenote has been approved) because it is the last account set up.

An employee is never paid more than 100 percent of the net pay.