Bank Tab

Use this tab to set up direct deposits for employees' pay. Access to the Bank tab depends on your security resources.

The system processes the deposits as it does other deductions. You first need to create records in the Deduction table for each type of deposit your organization allows and in the Bank table for each bank where the deposits are made. You can then assign the deduction in the employee's Deductions page and complete the bank-related information in the page's Bank tab.

Direct deposits can be set up as follows:

An employee's net pay can be deposited into a checking or savings account.
Deposits can be divided between two or more accounts, each of which requires its own employee Deduction record.
Employees can deposit part of their pay and receive a check for the balance.

The system issues a voucher to direct deposit employees who do not receive a pay check. For those who do receive a check, the system lists the deposits as deductions on their check stubs.

Fields

Field

Description

Bank Code

Code identifying the bank for depositing the employee's pay, as defined in Payroll's Bank table.

Transaction Code

System-defined code used in issuing prenotes to test direct deposits. The code determines whether the deposit is for checking or savings. It also controls the pre-note process. This field is required if you enter a bank code.

Select:

22 - Checking Deposit - Activates direct deposit to checking account.
23 - 2nd Checking Prenote - Enables bank to issue final checking prenote.
24 - Checking Prenote - Enables bank to issue first checking prenote.
32 - Savings Deposit - Activates direct deposit to savings account.
33 - 2nd Savings Prenote - Enables bank to issue final savings prenote.
34 - Savings Prenote - Enables bank to issue first savings prenote.

When you first set up a new Deduction record for an employee's direct deposit, your selection depends on the type of account (checking or savings). It also depends on whether the bank requires one or two prenotes to verify deposit information.

Here is how these codes work:

If you are setting up a direct deposit for checking and the bank requires two prenotes, select 24.
When you run the Create Bank Prenote Tape option, the system changes the code you enter to the next lower level, in this case, 23.
You then need to run the prenote tape option again for the bank, at which point the code changes to 22. This activates the direct deposit for your next pay run.

Bank Account

Employee's checking or savings account number for direct deposits. If you are setting up direct deposits to multiple accounts, create a separate employee Deduction record for each account.