Watch the Video

Watch this training video on how to setup and process direct deposit paychecks for your employees.

Follow the steps 

If you prefer to follow step-by step guidance, use the steps below.

Set up General Ledger (GL) accounts

1. Create three GL accounts in GL, Accounts, Maintain Chart of Accounts.
   • Holding Account - Account to hold payroll funds between debiting the payroll expense and disbursing to the bank account  
   • Fees Expense Account - The account to post processing fees your bank charges you for its service
   • Fees Cash Account - The account to credit for the processing fees.  NOTE: Use your existing cash account if desired

Define Direct Deposit Parameters

1. Select PR, Transfer, Direct Deposit Parameters.
2. Complete all the fields.  Contact your financial institution for assistance.
   

Enroll employees

 NOTE: Employees must fill out and sign an Employee Direct Deposit Authorization Form to enroll in direct deposit.  Contact your financial institution for assistance.

1. Select PR, Employees, Maintain Employees, Direct Deposit.
2. Enter the account information from the authorization form.
   • If the employee is distributing to multiple bank accounts, add each of the accounts and prioritize them. The Total percent of net must total 100%.
3. If your financial institution requires a prenote, select the Send prenote check box.
    NOTE: Although banks no longer require prenotes, we recommend ensuring the file will transmit correctly.
4. Select the Active check box to turn on direct deposit for the employee.
5. E-mail advices check box. Check the box if the employee desires the direct deposit advice emailed.
   • If checked, the employee E-mail must have a valid email entered in Maintain Employees
     
     
     
   • If an employee desires E-mail advice, no pay stub will print.  
      TIP: If an employee also wants a printed pay stub, use the PR, Reports, Check Voucher 
   • If unchecked, the pay stub will print when processing payroll checks
6. Complete the information for each employee using direct deposit.

Create and send prenote file 

1. Select PR, Transfer, Transmit Direct Deposit.
2. Set the Include prenotes radio button to Only.
3. Click OK.
4. A message displays to indicate the name and location of the file.  Make note of this information. 
   • The system creates the file BWPAYDDCOMPANYID.nnn and stores in your Sage BusinessWorks directory  
   • The value for COMPANYID is your company ID. The nnn extension is a three-digit number
      EXAMPLE: BWPAYDDSAMPLE.123 
5. Contact your financial institution for instructions on transmitting the file.

Process payroll 

1. Enter time cards in PR, Processing, Time Card Entry.
2. Calculate the time cards in PR, Processing, Automatic Payroll Calculation.
3. Print the Payroll Register and verify the time cards are correct.
4. Print the payroll checks in PR, Processing, Print Payroll Checks.
5. Select the Direct deposit radio button.
6. For employees with E-mail advice, select the E-mail button.  All employees with E-mail advice will process.
   
7. The process will return to the print checks window to print pay stubs for employees who opted out of E-mail advice.  

Verify payroll for accuracy

1. Go to PR, Reports, Payroll Register.
2. For Reporting period, select Current pay period.
3. Review the checks for accuracy.
   • Void and reprocess any checks that need corrections

Create the direct deposit File

1. Browse to PR, Transfer, Direct Deposit Preview Report.
    CAUTION: The information on this report will be in the NACHA file you send to your bank.  Ensure the amounts are correct. 
   
2. If you need to make any corrections, do so before going to the next step. Some items to check on the report. 
   • Previously transmitted checks appear on the report
   • The Direct Deposit Preview Report is blank
   • Prenotes are missing from the report
3. After review, print the report for your records.
4. Go to PR, Transfer, Create Direct Deposit File. Check with your Financial Institution if they require a balanced or unbalanced file.
   • By default, the file will create a balanced NACHA file
   • For unbalanced NACHA file, select the Create unbalanced file check box
5. Click OK.
6. A message displays to indicate the name and location of the file.  Make note of this information. 
   • The system creates the file BWPAYDDCOMPANYID.nnn and stores in your Sage BusinessWorks directory  
   • The value for COMPANYID is your company ID. The nnn extension is a three-digit number
      EXAMPLE: BWPAYDDSAMPLE.123 
7. Contact your financial institution for instructions on transmitting the file.
8. Review the

   direct deposit roadmap.doc to help identify the information contained in your NACHA file.

Post the direct deposit

• Use the PR, Transfer, Post Direct Deposit task.
• This task transfers the direct deposit payroll transactions and fees to your General Ledger and bank reconciliation.

Payroll Direct Deposit - Frequently Asked Questions (FAQ)

Void a direct deposit posting