PowerSchool ERP Payroll and Human Resources
PowerSchool ERP Payroll and Human Resources
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Direct Deposits

This section outlines the steps for establishing direct deposit accounts for your employees.

To set up direct deposits, perform the following steps in sequence:

  1. Set up Bank Codes

  2. Configure the Human Resources Profile

  3. Set up deductions

  4. Assign deductions

  5. Create Bank PreNote

Set up Bank Codes

Verify whether the required Bank Codes records are set up correctly for the bank you use for payroll funds and the financial institutions where employees' direct deposits are sent.

  1. From the Human Resources menu, select Reference Tables. From the Payroll menu, select Bank Codes.

  2. Enter the Search Criteria to find the required deduction records, and then select Search.
    Refer to Search for records for more information.

  3. To generate a report, select Print, and then select a Destination:

    1. Select File to create the report in .rpt format. The default file name is banks.rpt. You can change the default file name.

    2. Select Screen to download the report in .pdf format. The default file name is banks_<#####>.pdf.

    3. Select Excel to download the report in .xlsx format. Select the required Excel Options. The default file name is banksrpt<####_#####>.xlsx.

      • Select OK.

        • Download the .rpt file from the View Files page.

        • Save the .pdf or .xlsx file.
          For more information about the Print option, refer to Print Reports.

  4. Verify that the required records exist and are set up correctly. If the table includes the required records for the appropriate banks, proceed to Configure the Human Resources Profile.

  5. If the required records for the appropriate banks do not exist or are incorrectly set up, refer to the Bank Codes page and add or update records for banks to which direct deposits are sent.

Configure the Human Resources Profile

Verify and configure the direct deposit settings on the Human Resources Profile page.

  1. From the System Administration menu, select Administration. From the Profiles menu, select Human Resources Profile.

  2. Refer to the Field descriptions and enter or select valid information.

  3. Select Accept.

Field descriptions

Verify, enter, or select valid information on the following tabs of the Human Resources Profile page:

Payroll tab

In the Pay Check Print Options section, verify or complete the following fields:

Field

Description

Dir. Dep. Deduction on Vouchers

Select this option to list direct deposits as deductions on employees' vouchers.

Otherwise, leave it blank.

Zero Net Pay on Vouchers

Select the option to show net pay as zero on vouchers.

Leave this field blank to include direct deposits in the net pay.

If Dir. Dep. When Deduction on Vouchers is selected, and Zero Net Pay on Vouchers is not selected, the direct deposit amount will be deducted from the employee's net pay.

Direct Deposit Setup tab

On the Direct Deposit Setup tab, verify or complete the following fields:

Field

Description

Bank Destination Name

The full name of the financial institution where you send your direct deposit information.

Character/23

Bank Destination Number

A unique number identifying the bank where you send your direct deposit data, generally the ABA routing number.

Integer/9

Employer Bank Routing Number

The routing number of the bank you use for direct deposit transactions.

Integer/9

Employer Bank Account

The number that identifies the bank account used for direct deposit transactions.

Character/17

Immediate Origin(ating) Name

The name of your organization or a third party that is sending the direct deposit transactions to the bank.

Character/23

Immediate Origin(ating) Number

A 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

The additional information your bank requires as the leading row in the direct deposit file.

Character/80

Optional 2nd Transmission Record

The additional information your bank requires as the second row in the direct deposit file.

Character/80

Header Company ID

The company identification number for the batch header record in the direct deposit file.

This is usually 1 followed by the federal tax ID number.

Character/10

Control Company ID

The company identification number for the batch control record in the direct deposit file.

This is usually 1 followed by the federal tax ID number.

Character/10

Originating DFI ID

The 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

The 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

The code defining the method for handling bank debits.

Valid values:

  • 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 direct deposit amount.

  • D - Debit Entry on Tape:
    If the tape has debit totals for each bank and credit entries for each employee.

Set up deductions

Set up or verify direct deposit deduction records for each account type (for example, checking and savings) using the same values.

  1. From the Human Resources menu, select Reference Tables. From the Payroll menu, select Deductions.

  2. Enter the Search Criteria to find the required deduction records, and then select Search.
    Refer to Search for records for more information.

  3. To generate a report, select Print.

  4. On the Report Type page, select Detail, then select Accept.

  5. Select a Destination:

    1. Select File to create the report in .rpt format. The default file name is deductsd.rpt. You can change the default file name.

    2. Select Screen to download the report in .pdf format. The default file name is deductsd_<#####>.pdf.

    3. Select Excel to download the report in .xlsx format. Select the required Excel Options. The default file name is deductsdrpt<####_#####>.xlsx.

      • Select OK.

        • Download the .rpt file from the View Files page.

        • Save the .pdf or .xlsx file.
          For more information about the Print option, refer to Print Reports.

  6. Verify that the required records exist and are set up correctly. If the table includes the required records for the appropriate deductions, proceed to Assign deductions.

  7. If the required records for the appropriate deductions do not exist or are incorrectly set up, refer to the Field descriptions and add or update records.

  8. Leave the Taxation and Vendor tabs blank.

  9. Select Accept.

  10. Repeat Steps 6-8 for each additional deduction record needed.

Field descriptions

Verify, enter, or select valid information on the following tabs of the Deduction Table page:

General tab

On the General tab, verify or complete the following fields:

Field

Description

Deduction Code

Enter a code with the lowest possible priority in your Deduction record sequence, 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 period, for example, E for Every.

Character/1

Maintain Arrears

Leave this option blank.

Method

Select one of the following:

  • R - Employee %

  • S - Employee Amount

If R - Employee % is selected, you must enter a percent in the Deduction Amount/Rate field in the Employee Deduction Information section on the Employee Deductions page.

If S - Employee Amount is selected, you must enter an amount in the Deduction Amount/Rate field in the Employee Deduction Information section on the Employee Deductions page.

Subjective Gross

Select SP - Subject Pay Gross.

Employee tab

On the Employee tab, verify or complete the following fields:

Field

Description

Withholding Account

Enter the code for the withholding liability account in your Fund Accounting System.

Maximum Deduction

The 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 the Deduction Table page’s Maximum Benefit field.

Maximum Method

Select I - Inception to Date.

Deduction for a Bond

Leave this option blank.

Cafeteria Plan

Select N - Deduction is not part of the cafeteria plan.

Copy Bank Info to Vendor

Select this option to copy bank information from the employee (who is a vendor) to the corresponding vendor account.

Employer tab

On the Employer tab, verify or complete the following field:

Field

Description

Benefit Method

Select N - None.

Assign deductions

Assign direct deposit Deduction records to employees requesting this pay method.

  1. From the Human Resources menu, select Entry & Processing. From the Employee menu, select Employee Information. On the Employee Information page, search for and select an employee record. On the action bar, select Actions, then Deductions.

  2. Verify that the required deductions are assigned and configured correctly. If the appropriate deductions are assigned, proceed to Create Bank PreNote.

  3. If the appropriate deductions are not assigned or are incorrectly set up, refer to the Field descriptions and add or update records.

  4. 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.

  5. Leave the fields on the Employer and Accruals tabs at their default values of 0.

Field descriptions

Verify, enter, or select valid information on the Employee Deductions page:

Employee Deduction Information section

In the Employee Deduction Information section, verify or complete the following fields:

Field

Description

Deduction

Select the code of the direct deposit record you set up or verified on the Deduction Table page.

Status

Select A - Active.

Start Date

Enter the start date for direct deposits.

Deduction Amount/Rate

If R - Employee % is selected in the Method field on the General tab of the Deduction Table page, enter the decimal value of the deduction percentage (.05 = 5%).

If S - Employee Amount is selected in the Method field on the General tab of the Deduction Table page, enter the dollar amount of the deduction.

If you are setting up two or more records to allow direct deposit to multiple bank accounts for the employee, select the appropriate deduction code for each account and the percent or amount of the salary to distribute.

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 paychecks are to be deposited, for example, when an employee receives regular and vacation pay, you can update the field to 2.00. The system changes the value to 1.00 after the next pay run.

Bank tab

On the Bank tab, verify or complete the following fields:

Field

Description

Bank

Select the code of the bank record 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

Bank Account

Enter the employee's bank account number.

Create Bank PreNote

Create the pnbank.tpe file, 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.

  1. From the Human Resources menu, select Entry & Processing. From the Payroll menu, select Create Bank Prenote.

  2. Refer to Create Bank Prenote and run the bank prenote process.

  3. Once the prenotes have been generated and verified, you can process the direct deposits as part of the regular payroll process.

A Direct Deposit report and tape can be created during payroll processing in the Payroll Job Stream.