How do I set up direct deposit for an employee? (ACH) (2023.08)
Set up direct deposit for an employee. The direct deposit record includes where to deposit, into which bank account, and how much. When you're done, the direct deposit setup must be verified by the bank to make sure the banking information is correct.
Before you get started
Gather the following information from the employee:
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What is the bank name?
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What is the bank account number?
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Will the bank account be receiving a deposit or payment?
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Will the direct payment calculate an amount or percentage?
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If it's an amount, how much?
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If it's a percentage, what is the percentage?
Setting up direct deposit
1. Open Connect Payroll > Employees > Modify Existing Employees.
2. Click Direct Deposit.
3. Click Add a New Disbursement .
Add a New Disbursement button
A new form displays.
Bank form
4. Use the information that you collected from the employee to fill in the Bank, Account Number, Transaction Type, and Amount.
5. Use the Status menu to select Prenotification.
6. Click Save (CTRL+S).
The new direct deposit is saved. It will be included in the ACH Prenotification file that will be sent to the bank for verification. To learn how to create the ACH Prenotification file, see How do I create the ACH prenotification file?
Allocating an employee's direct deposit
If you have employees with more than one direct deposit allocation, you will need to add another allocation. Set the type to Amount and then enter 0.00 (zero) as the amount.
Employee direct deposit allocations
In the 2023.08 release, the option to use a zero percent was removed. After you set up the direct deposit allocations, you should add one more allocation with a zero amount.
In 2023.05 or earlier, you would set up each allocation and then you would add one more allocation with a zero percent. Connect would use the allocation with the zero percent to allocate any remaining amount so the allocaiton total would always equal 100% of the direct deposit amount.
For example, Bob has an employee who wants to deposit 33% into checking, 33% into savings, and 33% into a second savings account. Bob would set up four direct deposit allocations. The first allocation would deposit 33% into checking, the second allocation would deposit 33% into the first savings account, the third allocation would deposit 33% into the second savings account, and the fourth allocation would deposit the remaining amount into the checking account.
If the employee's direct deposit total is $100, then 33% of 100 is $33.33 with $00.01 remaining. The employee allocations would look like this...
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Allocation 1: Checking, $33.33
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Allocation 2: Savings 1, $33.33
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Allocation 3: Savings 2, $33.33
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Allocation 4: Checking, $00.01
Connect will use the last allocation to allocate the remaining amount in the event the employee's direct deposit allocations do not total to 100% of the direct deposit amount.
Related topics
How do I set up direct deposit for an employee? (ACH)
How do I create the ACH prenotification file?
How do I activate ACH prenotification?
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