Direct Deposits

The setup and procedural requirements for establishing direct deposit accounts for your employees are explained in the initial training for using the Human Resources System. This section provides an outline of the steps covered during training.

Setting Up Direct Deposits

Bank Table

1. Select Human Resources > Reference Tables > Payroll > Bank Codes.
2. In the Bank Table page, use the print or search procedure to verify records are set up for both the bank you use for payroll funds and the financial institutions where employees' direct deposits are sent.
   If the table includes records for the appropriate banks, refer to the Human Resources Profile procedure below. If you need to add records, proceed to Step 3.
3. If the table does not include records for the appropriate banks, click Add New, and then add records for any additional banks where direct deposits are sent.
   For additional information, refer to Bank Table.

Human Resources Profile

1. Select System Administration > Administration > Profiles > Human Resources Profile.

2. In the Payroll tab's Pay Check Print Options section, complete the following fields:

   Dir. Dep. Deduction on Vouchers	Select the checkbox to list direct deposits as deductions on employees' vouchers. Otherwise, leave it blank.
   Zero Net Pay on Vouchers	Select the checkbox to show net pay as zero on vouchers. Leave it blank to include direct deposits in the net pay.

   Note
   If you select Dir. Dep. Deduction on Vouchers and clear the Zero Net Pay on Vouchers field, the direct deposit amount will be included as a deduction and as part of the employee's net pay. 

3. In the Payroll tab's Direct Deposit Setup section, complete the following fields:

   Bank Destination Name	Full name of the financial institution where you send your direct deposit information. Character/23
   Bank Destination Number	Unique number identifying the bank where you send your direct deposit data, generally the ABA routing number. Integer/9
   Employer Bank Routing Number	Routing number of the bank you use for direct deposit transactions. Integer/9
   Employer Bank Account	Number identifying the bank account supplying funds for direct deposit transactions. Character/17
   Immediate Origin(ating) Name	Name of your organization or a third party that is sending the direct deposit transactions to the bank. Character/23

   Immediate Origin(ating) Number	Unique number identifying your organization or a third party that is sending the direct deposit transactions, usually a federal tax ID. Integer/10
   Optional 1st Transmission Record	Additional information your bank requires as the leading row in the direct deposit file. Character/80
   Optional 2nd Transmission Record	Additional information your bank requires as the second row in the direct deposit file. Character/80
   Header Company ID	Company identification number for the direct deposit file’s batch header record. This is usually 1 followed by the federal tax ID number. Character/10
   Control Company ID	Company identification number for the direct deposit file’s batch control record. This is usually 1 followed by the federal tax ID number. Character/10
   Originating DFI	Originating depository financial institution (DFI) identification number for the direct deposit file. This is usually the first eight digits of the bank routing number. Character/8
   Transaction Description	Description required by the clearing bank. This title appears in the header of direct deposit tapes, for example, DIR DEP or PAYROLL. Character/10
   Bank Debit	Code defining the method for handling bank debits. Select: N - None - If the tape has credit entries for each employee but no entries for the banks. C - Check to Bank - If actual checks are issued to each bank for the amount of the direct deposit. D - Debit Entry on Tape - If the tape has debit totals for each bank and credit entries for each employee.

4. Click OK to save your entries.

Deduction Table

1. Select Human Resources > Reference Tables > Payroll > Deductions.
2. In the Deduction Table page, click Add New.

3. To set up direct deposits for multiple accounts (for example, checking and savings), enter a direct deposit Deduction record for each type of account using the same values, except in the Deduction Code field.
   Press <Tab> in all fields containing zero defaults, and complete the other fields as follows: 

   General Tab
   Deduction Code	Enter a code with the lowest possible priority in terms of your sequence of Deduction records, such as ZZZZ or 9999.
   Title	Enter a title such as DIRECT DEPOSIT DEDUCTION. Character/25
   Check Title	Enter a title such as DIRECT DEP. Character/10
   Frequency	Enter a user-defined code indicating the deduction is taken every payroll, for example, E for Every. Character/1
   Maintain Arrears	Leave the checkbox blank.
   Method	Select R - Employee %.
   Subjective Gross	Select SP - Subject Pay Gross.
   Employee Tab
   Withholding Account	Enter the code for the withholding liability account in your Fund Accounting System.
   Maximum Deduction	Maximum cumulative amount that can be deducted in the period. When the maximum is reached, the deduction stops. If the record also includes an employer-paid benefit, the benefit can continue, depending on the Deduction section’s Stop Date field and Deduction table’s Maximum Benefit field.
   Maximum Method	Select I - Inception to Date.
   Deduction for a Bond	Leave the checkbox blank.
   Cafeteria Plan	Select N - Deduction is not part of the cafeteria plan.
   Copy Bank Info to Vendor	Checkbox to copy bank information from the employee, who is a vendor, to the corresponding vendor account. Select the checkbox to copy the information.
   Employer Tab
   Benefit Method	Select N - None.

4. Leave the Taxation and Vendor tabs blank.
5. Click OK to save the record.
6. Repeat Steps 3-5 for each additional direct deposit record needed.

Employee Information Page

1. To assign direct deposit Deduction records to employees requesting this pay method, select Human Resources > Entry & Processing > Employee > Employee Information.
2. Search for and list the employees you want to change.
3. In the List section, select an employee.
4. Click Payroll Information on the Action Bar, and then select Deductions.
5. In the Employee Deductions page, click Add New to add the direct deposit deduction to the employee's record.
6. Accept the defaults in all fields displaying a zero, except the Deduction Amount/Rate field. Leave the Deduction Account, Stop Date, and Benefit Eff. Date fields blank. In the remaining fields:
   Employee Deduction Information Section
   Deduction Enter the code of the Deduction Table record you created for direct deposits.
   Status Select A - Active.
   Start Date Enter the start date for direct deposit.
   Deduction Amount/Rate Enter 1.00 to deposit 100 percent of the employee's net salary. If you are setting up two or more records to allow direct deposit to multiple bank accounts for the employee, enter the appropriate deduction code for each account and the percent of the salary to distribute. For example, enter 50% as 0.5.
   Check Indicator Select X - 1st Check Only if the employee's first check in a pay run is deposited and the second is printed.
   Select S - 1st and 2nd Check if both the first and second checks are deposited and neither is printed.
   Number of Times Normally, you should accept the default value of 1.00. If two pays are to be deposited, for example, when an employee receives regular and vacation pay, you can change the field to 2.00. The system changes the value to 1.00 after the next pay run.
   Bank Tab
   Bank Enter the code from the Bank table for the bank where the employee's check should be deposited.
   Transaction Code Select one of the following, depending on the type of account and whether one or two prenotes are required:
   23 - Checking, one prenote
   24 - Checking, two prenotes 33 - Savings, one prenote
   34 - Savings, two prenotes
   For more information on prenotes and transaction codes, refer to Create Bank Prenote.
   Bank Account Enter the employee's bank account number.
7. Leave the fields in the Employer and Accruals tabs at their zero defaults.
8. Click OK to save the Employee Deduction record.

Create Bank PreNote

1. Select Human Resources > Entry & Processing > Payroll > Create Bank Prenote.
   This option creates a file named pnbank.tpe, which allows the bank to verify the accuracy of employee account information. This file can be sent electronically via modem or can be copied to a disk for delivery.
2. Run the bank prenote process. For the procedure, refer to Create Bank Prenote.
3. When the prenotes have been generated and verified, you can run the direct deposits during regular payroll processing.

Note

A Direct Deposit report and tape can be created during payroll processing in the Payroll Job Stream. For more information on direct deposits, refer to Direct Deposit.