About setting up direct deposit

Before you begin to set up and process direct deposit, consider the following:

• Obtain the account and routing numbers from each employee for the bank accounts into which they want their paycheck deposited.
• Determine if your bank requires a pre-notification.
• Contact your bank to determine any delivery requirements, including encryption, additional file format requirements, or other requirements specific to an individual bank.

Setting up direct deposit involves entering information in two windows, 7-2 Company Information and 5-2-1 Employees.

Under Payroll Direct Deposit Setup in the 7-2 Company Information window, you set up the parameters that control the movement of information between your company and your bank. This is where you enter your company bank account number, routing number, and account type, which is either checking or savings. There are also three check boxes located under Account Type that specify the format of the file type sent to the bank.

Caution! Whenever any changes are made to your direct deposit file format by changing any of the formatting options, you should contact your bank and request a retest to be sure your bank is ready for the changes.

You can set up direct deposit of paychecks using the Direct Deposit tab in 5-2-1 Employees. The employee must provide you with the following information for each account to which he or she wants funds deposited: account type, routing number, account number, rate type, and rate. You can deposit funds in up to four different bank accounts for an employee.