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 Overview

Use the following procedure to enter direct deposit information for employees, including their bank account information, distribution method, and pre-note 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 for direct deposit

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. As amounts are deposited to accounts, the Deposited YTD field is updated automatically. For more information, see Employee Direct Deposit - Fields.

   If you need to distribute the employee's pay to more than one bank account, see Distributing Pay to Multiple Accounts.

5. In the Pre-Note Sent field, select Yes if a pre-note has been sent or approved for an account. Select No if a pre-note has not been sent for the account. Direct deposits cannot be made into an employee's account until a pre-note is approved for that account. This field defaults to No to allow this bank account to be included in the next batch of accounts transmitted for pre-note approval.

6. Click Accept.

If you send the pre-note using the Pre-Note Selection Register, the selection in the Pre-Note Sent field is automatically changed to Yes. When the pre-note is approved, you can print and update the Pre-Note Approval Register to automatically change the selection at this field to Approved. For more information, see Send Pre-Notes for Approval.

Distributing Pay to Multiple Accounts

In the Employee Direct Deposit window accessed through Employee Maintenance, you can enter information for multiple bank accounts and select a distribution method to specify how much of the employee's pay is allocated to each account.

If the employee wants to distribute a fixed amount to one or more accounts, make sure the fixed amount accounts are listed first. For example, if an employee wants to distribute $50 to a Christmas club account, $200 to a savings account, and the remaining wages to a checking account, set up the accounts as shown in the following table: 

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

 

The last account with an approved pre-note is the catchall for any funds not distributed to another account if the Allow Partial Allocation of Check Amount check box in Payroll Options is cleared. In the example, 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.

If the Allow Partial Allocation of Check Amount check box is selected, any portion of the net pay not distributed to the accounts is printed on a check.

If no accounts have an approved pre-note, the entire net pay amount is provided as a check.