Direct Deposit Configuration

Direct deposit refers to the electronic transfer of an employee's net pay directly into the accounts designated by the employee. For employees who have requested direct deposit payments, the application generates a direct deposit file for China.

The direct deposit file contains the details of the net pay distribution for each employee deposit. Financial institutions use the details in the file for processing and distributing the payments.

Before you generate the direct deposit file, complete these tasks:

• Set up the financial institutions

• Set up employer account information and organization payment methods

• Set up employee account information

Set Up Financial Institutions

Use the Manage Banks task in FSM to set up the financial institutions, branches, and account information for the organization. Before you enter the employees direct deposit account information, you must set up the financial institutions and branches that your employees use.

Set Up Employer Account Information and Organization Payment Method

Use the Manage Organization Payment Methods task in the Payment Distribution work area to set up employer account information and organization payment methods. On the Create Organization Payment Method page, enter this information pertaining to your financial institution.

Field	Description
Payment Type	Select Direct Deposit, the name for electronic transfer of funds directly into employee designated accounts.
Financial Institution	Name of financial institution sending or receiving the direct deposit orders.

Set Up Employee Account Information

You must create a payroll definition that uses the Direct Deposit payment method and assign all employees to this payroll. Set up the direct deposit account information for each participating employee:

• If you haven't enabled employee self-service, use the Manage Personal Payment Methods task in Person Management work area to enter employee's direct deposit information.

• If you have enabled employee self-service, individual employees can provide their direct deposit account information using the Manage Personal Payment Methods task.

The first account you enter should be the default account. If you define a second personal payment method account, you can specify the deposit amount as percent of the total amount or a flat amount.

After you have set up the employer's account information and the employee's personal payment methods, the processing of direct deposits can occur. Prior to running the direct deposit process, you must complete the following three tasks:

• Calculate Payroll

• Calculate Prepayments