1. Implementing Payroll for the United States
  2. Direct Deposit for the US

Direct Deposit for the US

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 Make EFT Payments task in the US Simplified Payroll Cycle flow generates a direct deposit file. 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.

There are multiple steps involved with configuring direct deposit.

What you want to do

How you do it

Set up bank info

Use the Banks task from your implementation project.

Set up employer account info and organization payment methods

Use the Organization Payment Methods task to set up employer account info and organization payment methods (OPMs).

Configure payroll definitions

Use the Payroll Definitions task.

Set up employee account info

  • If you haven't enabled employee self-service, use the Personal Payment Methods task to enter employee's direct deposit info.

  • If you have enabled employee self-service, instruct your employees to provide their direct deposit account info using the Personal Payment Methods task. They can start the task by selecting Personal Information, then selecting Payroll.

For further info, see the following sections.

Set Up Bank Info

Before you enter the employees' direct deposit account info, you must set up the banks and branches that your employees use. Use the Banks task from your implementation project to configure this for your organization.

  • Banks

  • Bank branches

  • Account info

For further info, see Bank Configuration for the US in the Help Center.

Set Up Employer Account Info and Organization Payment Method

Use the Organization Payment Methods task to set up employer account info and OPMs. On the Create Organization Payment Method page, enter the following info pertaining to your financial institution.

Field name

How you use it

Name

Enter the name of the OPM.

Payment Type

Select the payment type for this OPM.

You must create a separate OPM for domestic and international payments.

Use the Direct Deposit payment type for domestic direct deposits and the International Transfer payment type for international payments.

Two EFT templates are available.

  • PPD for US Payments

  • IAT for international payments

    For further info, see Set Up International Payment Processing for the US in the Help Center.

Currency

Select US Dollar.

Bank Name

Name of financial institution sending or receiving the direct deposit orders.

Bank Reference

A unique 9-digit code issued by the financial institution for identifying the destination bank routing transit number.

Company Name

Identifies the company name of the originator.

Company Reference Type

Optional name.

Company Reference

Numeric code assigned to the employer by an external authority, such as their IRS tax ID or D-U-N-S number. Must be 9 or 10 characters.

Include Balancing Entries

Select Yes or No.

Determines whether the payroll process generates a balanced or unbalanced electronic payments file. An unbalanced electronic payments file doesn't have an offsetting debit record and therefore allows cases where the total debits of the file aren't equal to the total credits. Some banks require unbalanced files.

Transaction Limit

Maximum amount of money allowed on a single direct deposit transaction.

Payment Limit

Maximum amount of money allowed on a single direct deposit file.

Prenotification Required

Prenotification is the process of submitting a USD transaction in order to verify an electronic transfer's routing numbers and account number info. Use this field to indicate whether a prenotification process is required for direct deposit payment types.

For further info, see Prenotifications for the US in the Help Center.

Prenotification Amount

Indicate the amount to prenote. The default is $0.

Prenotification Days

Indicate the number of days to process a prenote.

For further info, see Organization Payment Methods for the US in the Help Center.

Configure Payroll Definitions

You must create a payroll definition that uses the Direct Deposit payment method and assign all eligible employees to it.

For further info, see Payroll Definitions for the US in the Help Center.

Set Up Employee Account Info

Set up the direct deposit account info for each participating employee.

  • If you haven't enabled employee self-service, use the Personal Payment Methods task to enter employee's direct deposit info.

  • If you have enabled employee self-service, individual employees can provide their direct deposit account info using the Personal Payment Methods task. They can start the task by selecting Personal Information, then selecting Payroll.

The first account you enter is 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 your employer account info and the employee's personal payment methods, the processing of direct deposits can occur. Prior to running the direct deposit process, complete these tasks.

  • Calculate Payroll

  • Calculate Prepayments

  • Archive Periodic Payroll Results

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