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 To enter employee direct deposit information using a percentage of net pay
  1. Under Manage Records, click the Records tab.
  2. In the drop-down list, select Add/Edit Employees and click Go .
  3. Select the employee and click Edit.
  4. On the Direct Deposit tab, select the Uses Direct Deposit and Allocate using percent options.
  5. Optional: If you are registered for Employee Self Service, and the option to print stubs for ACH employees is not selected in Payroll setup, you can select Print ACH Stub.
  6. Click Add.
  7. In the drop-down list, select an Account Type.
  8. Enter the employee's Account Number as it appears on the voided check.
  9. In the Bank's Transit Number field, enter the transit number as it appears on the check.
  10. Enter the Percentage of Net Pay. The amount entered is the percentage of net pay that is deposited into the selected account. If the percentages of net pay are entered for multiple accounts, the percentages must total 100%.
  11. Optional: To add another direct deposit account for the same employee, select the Add Another check box.
  12. Click OK twice.
 To enter employee direct deposit information using an amount of net pay
  1. Under Manage Records, click the Records tab.
  2. In the drop-down list, select Add/Edit Employees and click Go .
  3. Select the employee and click Edit.
  4. On the Direct Deposit tab, select the Uses Direct Deposit option.
  5. Optional: If you are registered for Employee Self Service, and the option to print stubs for ACH employees is not selected in Payroll setup, you can select Print ACH Stub.
  6. Click Add.
  7. Select an Account Type.
  8. Enter the employee's Account Number as it appears on the voided check.
  9. In the Bank's Transit Number field, enter the transit number as it appears on the check.
  10. Enter the Amount of Net Pay. The amount entered is the specific amount of net pay that is deposited into the selected account.
  11. If applicable, select Allocate Remaining Balance to this account? to deposit the employee's remaining net pay into the account you are adding. When entering direct deposit information based on the amount of net pay, at least one account must have this option selected. For example, suppose you allocate $400 of James Aaron's net pay to his checking account. Then, you allocate $100 of his net pay to his savings account and select this option. If James' net pay is $550, the remaining $50 will be deposited into his savings account.
  12. Optional: To add another direct deposit account for the same employee, select the Add Another check box.
  13. Click OK twice.

Useful Information

Below are fields in the Direct Deposit Account window and their equivalents in banking terminology.

Direct Deposit Account Window
ACS TerminologyBanking Terminology
Account NumberDFI (Depository Financial Institution) Account Number
Bank Transit NumberReceiving DFI ID Identification

Overview

To use the Direct Deposit feature, you must first obtain setup information from your bank and enter the information on the ACH Setup tab of the bank account from which the checks are issued. You can access the bank accounts through Define Lists in the General Ledger module.

After you set up direct deposit, request voided checks from participating employees and enter the appropriate account and routing numbers. You'll also need to obtain bank information from new employees.

Tip

If you are registered with the Employee Self Service Site, you can select to print check stubs for all ACH employees in Payroll Setup. If this option is not selected, you can select to print stubs on individual employee records.

Direct Deposit is in NACHA format, which is a national association that develops electronic solutions for payment systems. When you process payroll, ACS generates an ACH (Automated Clearinghouse) file that your bank uses to electronically deposit payroll checks to the employee's bank accounts.

Note

If you enter direct deposit using an amount of net pay, amounts that exceed the employee's net pay will not be deposited.

When you process the ACH file, an asterisk displays beside these records with an explanation that the employee's direct deposit allocations exceeded their net pay.

On the bottom of all checks, the following three groups of numbers display in the order listed:

  • Bank Transit Number — Eight or nine digit number that identifies the bank that holds the employee's account. If the bank transit number is eight digits only, ACS calculates the ninth digit.
  • Account Number — Employee's bank account number.
  • Check Number — Number of the current check. This number is not used in the direct deposit information.

If you need to disable the direct deposit option for an employee, clear Use Direct Deposit on the employee's record.