Direct Deposit Distribution Rules

• Percent of Net Pay
  • Always calculated on the original net amount of the check.
  • Doesn't consider remaining balance after other deductions or distributions.
• Fixed Amount
  • The system distributes only the available amount when the fixed amount exceeds the net amount or balance.
  • If using both Fixed Amount and Percent of Net, Fixed Amount is prioritized first.
    
    • Priority 1: Percent of Net 100%.
    • Priority 2: Fixed Amount $50.
    • Result: First distribution uses the full amount, leaving nothing for the second.
  • The final account uses Percent of Net and either:
    • Remaining percentage (if others are Percent of Net).
    • 100% (if others are Fixed Amount).
• Account Management
  • You can't delete accounts with history.
  • To stop distribution to an account, set its amount to 0 (sets it as inactive).
• Distribution Behavior
  • If you don't fully distribute a paycheck, the remaining amount goes to highest priority account.
  • If fully distributed before reaching the lowest priority accounts, those accounts receive no funds.
• Adjusting Priorities
  • Use the Move Up and Move Dn buttons to change account order.
    

Entering Employee Banking Information

• Go to Maintain Employees, Direct Deposit.
• Enter accounts in priority order (distribution follows this order).
• Required fields:
  • Routing Number – Bank routing/transit number.
  • Account Number – Savings or checking account number.
  • Account Type – Checking or Savings.
  • Send Prenote – Select to send a prenote.
  • Distribution Type – Choose Percent of Net or Fixed Amount.
    • Percent of Net is based on original net pay.
  • Distribution Amount – Enter a fixed amount or percentage.
    • Percentages across all accounts must total 100%.

How BusinessWorks Calculates Distributions

• The system calculates based on:
  • Account priority order.
  • Distribution Type and Amount.

Example 1

• Net check: $1,000
• Distribution #1: Fixed $50 (Savings)
• Distribution #2: Percent of Net 100% (Checking)

Calculation:

• Distribution #1: $50 from $1,000. Remaining $950.
• Distribution #2: $1,000 × 100% = $1,000. Only $950 available, so $950 distributed.

Example 2

• Net check: $1,000
• Distribution #1: Fixed $100 (Savings)
• Distribution #2: Percent of Net 25% (Checking A)
• Distribution #3: Percent of Net 75% (Checking B)

• Distribution #1: $100. Remaining $900.
• Distribution #2: $1,000 × 25% = $250. Remaining $650.
• Distribution #3: $1,000 × 75% = $750. Only $650 available, so $650 distributed.