Setting up Direct Deposit for an Employee

You can set up employees for direct deposit payments by entering bank account information on employee records. You can also direct employees to set up their own direct deposit banking information. For more information, see Enabling Employees to Update Direct Deposit Information.

To set up direct deposit for an employee:

Go to Lists > Employees > Employees.
Next to the employee that you want to set up for direct deposit, click Edit.
On the employee record, click the ACH/Direct Deposit subtab.
Check the Use Direct Deposit box.
In the Accounts table, add bank accounts for the employee:
1. Check the Net Account box to indicate that the net paycheck balance should be deposited in this account.
  
  For example, an employee's check amount is net pay of $1,200.00. The employee record lists two direct deposit accounts, one Savings account showing an amount of $200.00, and one Net account. The transaction will show a deposit of $200.00 into the savings account, and the balance, $1,000.00, is deposited into the Net account.
  
  For more examples of Direct Deposit payroll transactions, see Printing Direct Deposit Vouchers.
2. If the account is a savings account, check the Savings Account box.
3. To run a prenote test transmission on the account, clear the Prenoted box.
  
  To process direct deposit transactions to this account without a prenote test, check the Prenoted box. NetSuite recommends that you run a prenote test for each account.
4. In the Bank Name column, enter the name of the employee's bank.
  
  You can enter up to 31 characters in this field.
5. In the Routing Number column, enter the 9-digit routing number for the employee's bank account.
  
  Note:
  International payment of employees’ direct deposit is not yet supported by SuitePeople U.S. Payroll. You may consider using pay cards to pay employees with international bank accounts. Be aware that international transit numbers may require a specific number pattern. For example, Canadian transit numbers are regulated by the Canadian Payments Association. The number pattern for Electronic Fund Transactions (EFT) is 0YYYXXXXX. The first four digits represent the transit number where YYY is an Institution Number. The last five digits represent the Branch Number. The last digit of the Branch Number, with few exceptions, indicates the geographical location of the branch.
6. In the Account Number column, enter the employee's bank account number.
  
  You can enter up to 20 characters in this field.
7. In the Amount field, enter the amount of the payment to be deposited to this bank account.
  
  For example, an employee requests that $200.00 from every paycheck is deposited into their savings account. Enter 200 in the amount field next to the savings account information.
  
  If the account is the Net Account, leave this field blank.
8. To save the bank account on the employee record, click Add.
  
  You can repeat this process to add multiple accounts for this employee.
Click Save.

If a direct deposit to an employee's account fails and the error cannot be resolved, note the following. NetSuite changes the paycheck from direct deposit to Employer Paid and refunds the amount that initially funded the employee's direct deposit. The refund does not trigger a correcting journal entry. For this reason, when your company receives the refund, you must make a manual journal entry in your Payroll Funding Account. For more information, see Making Journal Entries.

To set up direct deposit for an employee:

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