Creating and processing direct deposit pre-notes

Before you begin to process direct deposit for your employees, some banks require you to send them a pre‑notification (pre-note) so they can verify the account numbers are valid.

Important! Not all banks require a pre-note for every employee. Contact your bank to determine pre-note requirements.

Creating and processing a direct deposit pre-note is a four part process.

Part 1—Set up the employee's account:

1. Open 5-2-1 Employees, and display the employee.
2. Click the Direct Deposit tab, and select the Enable Direct Deposit box.
3. From the Status menu, select 1-Prenote.
4. In the Routing# box, type the routing number of the employee’s bank.
5. In the Account# box, type the employee’s bank account number.
6. From the Rate Type menu, select the type of deposit.
7. In the Rate box, type the rate.
8. From the File menu, select Save.
9. If required by your bank, repeat steps 1-8 above for each employee.

Part 2—Enter and process sample payroll records:

1. Open 5-2-2 Payroll Records.
2. In the Employee box, enter the employee.
3. In the Period Start box, type the period start.
4. In the Period End box, type the period end.
5. In the Check Date box, type today's date.
6. In the Check# box, type a sample check number.
7. From the Payroll Type menu, select 3-Hand Computed.
8. In the Quarter box, enter the quarter.
9. In the State box, type the state.
10. In the Salary box, type .01.
11. From the File menu, select Save.
12. Open 5-2-5 Direct Deposit File Manager.
13. In the Payroll Check Date box, type the check date.
14. In the Deposit Date box, type the deposit date.
15. Click Start.

16. To the message, [number] records will be processed for direct deposit, click [OK].

    After the direct deposit file is processed, the Select Destination File window appears.

17. Select the location in which to save the file and click [Save].
18. The default destination is X:\MB7\[Company Name]\Direct Deposit (where X: is your network drive).
19. The file you save is the direct deposit pre-note you send to your bank.
20. To the message, Direct Deposit Process Complete click [OK].
21. To the message, Do you want to print the Direct Deposit file report? click [Yes].
22. From the File menu, select Print.

Part 3—Enter and process regular payroll checks for your employees.

Part 4—After you receive notification from the bank, void the sample payroll records and change the employee's account status to 3-Active.