Advanced Feature - Setting Up Direct Deposit
This topic describes which programs to use for setting up direct deposit for an employee and for setting up the direct deposit control records for the bank. It also lists the programs required to export the direct deposit information in preparation for transmission to the bank.
General Flow:
1. Set up the tables used by direct deposit that contain the deposit codes, lead times, and bank definitions.
2. Set up each employee's permanent direct deposit information.
3. Set up the control records for the export file, a one-time task.
4. During the Payroll Run, run the programs that process the prenote information and build the data for export.
Use the following programs to set up the tables for direct deposit.
Pre-Note Table Maintenance (PRE-NOTE): Define the meaning of the Direct Deposit Transaction Codes that classify the type of transaction for a direct deposit. You only have to set this up once.
Direct Deposit Days Table Maintenance (DD-DAYS): Specify the number of days (lead days) required by the banks for processing direct deposit. You only have to set this up once.
G/L Pay Amount Table Maintenance (GL Pay): Enter the General Ledger Account Number for direct deposit, if applicable. You only have to set this up once.
G/L Pay Amount for Fund Table Maintenance (GL Paynn): Enter the General Ledger Account Number for direct deposit, if Fund Accounting is active. You only have to set this up once to direct the system how to transfer amounts from the cash account to the proper Fund Number.
Bank Number Table Maintenance (BANKnn): Create a table for each bank receiving direct deposits. You only have to set up each bank once.
There are 2 ways to set up employees for direct deposit, which are outlined below. You can:
Set up employee to have their net pay deposited to 1 account
Set up employees to have portions of their pay deposited to different accounts
Go to Employee Master Maintenance - Direct Deposit Information Area and call up the employee. Enter the following fields:
Bank Number: Select the bank from the drop-down list. This is the list of banks created in Bank Maintenance. The bank ABA number displays for your verification.
Direct Deposit Transaction Code: Select the transaction
code that is used to determine the type of account and whether or
not the account is pre-note or live with direct deposit. When
an employee is set to go direct deposit, there is oten a test period
of 10 days (usually 2 payroll runs for weekly payrolls) required by
the bank to make sure the bank and account information is correct.
Tip: Regardless
of the bank's pre-note policy, NDS recommends that you always select
a pre-note transaction code to test the direct deposit information
before going live. The system will automatically update the
pre-note code to the live code after the 10 days has passed.
Employee Bank Account Number: Enter the employee's bank account number to which the net pay is to be direct deposited.
Prenote Date: Defaults to today's date. The date is used to determine if the required number of days has passed in order to switch the employee from a pre-note status to a live status.
Paperless Voucher: Leave this box unchecked unless your office offers an electronic employee payroll portal for viewing payroll check information. For more information, contact NDS Support at 1-800-649-7754.
This setup is a bit more involved. An employee can have portions of the paycheck deposited to multiple accounts, or they can have just a portion direct deposited. To do this, in addition to setting up the bank tables, you will create Deduction Masters for each bank used for employee direct deposits. You will also add a scheduled deduction to the employee for each portion of their check that will be direct deposited.
1. Create a Deduction Master for each Bank. Do this in the same manner as you would for any other deduction with the exception of the following fields.
a. Deduction Type: Select Deduction Type 6 - Direct Deposit.
b. ABA Number: Enter the bank's routing or ABA number.
2. Add the Deduction to the Employee.
a. Load the employee and then select Scheduled Deds Master from the Employee Menu.
b. Set the following fields
Deduction Code: Click Search to find the deduction code created for the bank.
Deduction Amount: Enter the deduction amount.
Deduction Method: Select the method.
DD Transaction Code: Select the transaction code, pre-note deposits to checking or pre-note deposits to savings.
Account Number: Enter the employee's account number at this bank or financial institution.
Prenote Date: Defaults to today's date. The system uses the date to determine if the required number of days has passed in order to switch the employee from a pre-note status to a live status.
Normally, you only have to set up the bank control records one time.
Direct Deposit Build Menu: Use the following programs to define the control records that are automatically loaded into the export file for the bank.
Export File Definition: Use the following program to define the name, location and layout of the export file.
Tip: For information about the timing of the following programs within the Payroll Run, refer to the Payroll Runbook.
1. Update Prenote Codes: Changes employee Prenote Codes to Send Codes when the Prenote Date is reached.
2. Build Direct Deposit File: Captures the direct deposit amounts for each employee.
3. Export Direct Deposit File: Creates the export file for the bank, in preparation for the actual transmission.
4. Update Prenote Dates: Updates the employee Prenote Dates to start the mandatory waiting period (a minimum of 10 days) for any employee starting direct deposit.
5. Transmit the export file to the bank using the agreed-upon method.