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

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

  • 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.

Important Do not attempt to process payroll for any employee whose record is incorrect or incomplete. Use Employee Maintenance to correct or complete all employee records before processing payroll. You cannot select an employee in Payroll Data Entry if you have not entered all information on the Taxes tab in Employee Maintenance.

Processing payroll and generating the ACH file is a four-step process:

 

To enter payroll data

  1. Select Payroll Main menu >  Payroll Data Entry.

    If batching is enabled, the Payroll Data Entry Batch window opens. Enter a batch number and optionally a comment. Select the Private Batch check box if applicable. For more information, see Batch Entry - Fields.

  2. In the Pay Cycle window, enter payroll cycle data, such as the period starting and ending date, check date, and so forth. For more information, see Pay Cycle - Fields.

    Note Employees will be included only if their pay cycle entered in Employee Maintenance matches the current pay cycle.

  3. There are three ways to create payroll entries:

    • Click OK to proceed to Payroll Data Entry and manually create payroll entries.

    • Use Auto Pay to automatically create data records for groups of employees with standard earnings and deductions.

    • Import entries from Time Track Entry.

    1. Click Auto Pay.
    2. In the Auto Pay window, select the employees that you want to pay. You can select employees by department, employee number, labor distribution code, and based on whether they are hourly or salaried. For more information, see Auto Pay - Fields.
    3. Enter the hours for the payroll cycle.
    4. The earnings code entered in the Pay Cycle window appears in the Earnings Code 1 field and can only be viewed. If applicable, enter a second earnings code to automatically pay additional earnings to the selected employees.

    5. Click OK.

    6. A message asks if you want to automatically pay more employees.

      Click yes to return to the Pay Cycle window and make additional selections or import records from Time Track Entry.

      Click No to proceed to the Payroll Data Entry window.

    1. Click Time Track.
    2. In the Payroll Time Track Selection window, use the grid to select the entries that you want to import.
    3. Click Proceed.

    4. A message asks if you want to select more Time Track Entry data.

      Click Yes to return to the Time Track Selection window. Make additional selections and then click Proceed.

      Click No to proceed to Payroll Data Entry.

    1. Click Labor.

    2. In the Production Management Labor Selection window, use the grid to select the entries that you want to import.
    3. Click Proceed.

    4. A message asks if you want to select more Labor Entry data.

      Click Yes to return to the Production Management Selection window. Make additional selections and then click Proceed.

      Click No to proceed to Payroll Data Entry.

    Notes

    • Benefits entered in Labor Entry are not imported into Payroll Data Entry.
    • Overtime is imported into Payroll Data Entry as entered in Labor Entry. Overtime earnings are not automatically calculated.

  1. In Payroll Data Entry, select employees not paid using the Auto Pay or Time Track feature, and click the Lines tab to enter all applicable earnings and deductions.

 

To calculate taxes and verify information

  1. When you are finished entering payroll data in Payroll Data Entry, click the Print button. The Payroll Tax Calculation Payroll Tax Calculation window opens. You can also access this window from the Payroll Main menu.

  2. Click Proceed. Withholding taxes are calculated for each check.

  3. When a message asks if you want to print the Payroll Data Entry Audit Report, click Yes. Check the audit report for accuracy, and use Payroll Data Entry to make any needed corrections.

    If the direct deposit information is incorrect, return to the Employee Direct Deposit window accessed through Employee Maintenance. Make any needed corrections, run Payroll Tax Calculation again, and print the Payroll Data Entry Audit Report to verify the amounts.

  4. Select Payroll Main menu > Employer's Expense Summary. Print and review the report.

    Note The data used to create the reports on the Payroll Main menu is created when you run Payroll Tax Calculation, and it is cleared when the Check Register is updated. Be sure to print these reports as needed before you update the Check Register.

 

To print checks and direct deposit stubs

  1. Select Payroll Main menu > Check Printing.

    If the Payroll Data Entry Batch window opens, select a batch.

  2. Enter an effective date. The effective date should be your payroll check date. This date may need to be adjusted to allow for weekends and holidays. Please verify with your bank.

  3. Make any other selections as needed. For more information, see Payroll Check Printing - Fields.

  4. Click Print.

  5. If the Print Direct Deposit Stubs check box is selected in Payroll Options, after any checks are printed, a message asks if you want to print direct deposit stubs. Click Yes to open the Direct Deposit Stub Printing window. You can also open the window from the Check Printing window by clicking Direct Deposit Stubs.  

  6. If the Print Direct Deposit Stubs check box is cleared in Payroll Options, a voided check will print for direct deposit employees and there will be no prompt to print direct deposit stubs.

  1. When a message asks if you want to print the Check Register, click Yes.

    Note You can also access the Check Register from the Payroll Main menu.

  2. After the Check Register prints, the Direct Deposit Register window opens. You can enter a direct deposit comment for the current payroll batch. The comment appears on the employee's bank statement and prints in the Bank Reconciliation module to identify this particular deposit. The default comment is the period-end date for the pay period, but you can change it.

    Print the Direct Deposit Register. Verify that all information is correct, and then update the Check Register.

  3. When a message asks if you want to print the Daily Transaction Register, click Yes.

    Note You can also access the Daily Transaction Register from the Payroll Main menu.

  4. Verify that they information is correct, and then update the Daily Transaction Register. The payroll postings are updated to the general ledger.

As part of the Check Register update process, a direct deposit batch file is created that contains the transaction information needed to generate an ACH file to submit to your bank.

 

To generate an ACH file

  1. Select Payroll Direct Deposit menu > Direct Deposit Processing. The Generate Direct Deposit ACH File window opens.

  2. In the Bank Code to Use for Pre-Note Entries field, enter a bank code to use for any existing prenote entries that have not yet been processed. These prenote entries will be added to an ACH file so that you can submit them to the bank for approval. Leave the field blank if you don't want to include the prenote entries.

  3. Enter a file code, which will be used as part of the ACH file name. For more information, see Generate Pre-Note ACH File / Generate Direct Deposit ACH File - Fields.

  4. In the Batches to Include in Transmission field, select an option to determine which batches are included in the ACH file (or files).

  5. If you want to include certain batches based on the effective date, enter the date or a range of dates.

  6. If you're including batches that were previously added to an ACH file, you can select them based on the transmission date. The transmission date is the date the batch was last added to an ACH file. Enter the date or a range of dates.

  7. Click Proceed.

The ACH file(s) are created and saved in the location specified in Payroll Options. You can now submit the files to your bank.