About direct deposit

Direct deposit allows your employees to have their paychecks deposited directly into their bank account. Banks require electronic delivery of payroll information by companies wishing to provide employees with direct deposit. Sage 100 Contractor supports the creation of a file in automatic clearing house (ACH) format. You can then send this file to your bank. Your bank will extract records from the file and create files that are routed through ACH providers to the various employee banks.

Notes:

• Contact your bank to determine any delivery requirements, including encryption, additional file format requirements, or other requirements. After establishing and agreeing on a method of delivery with your bank, you can create the file and deliver it in the agreed-upon method.
• 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.
• After creating the Direct Deposit File, Sage 100 Contractor prompts you to print a Direct Deposit File Report that shows your Direct Deposit File information. If you do not print that report at that time and need to reprint the report, use Options > Reprint Direct Deposit Report.

Two documents can be created during a direct deposit run: the Direct Deposit File and the Direct Deposit File Report.

• Direct Deposit File - The Direct Deposit file is created in Automated Clearing House (ACH) format and is saved as a .txt file used by the bank. By default it is saved in the x:\MB7\companyname\Direct Deposit folder (where x: is your network drive). The next time you save your direct deposit file, Sage 100 Contractor defaults to the directory where the file was last saved. The exact location of your direct file appears on the Direct Deposit File Report.
• Direct Deposit File Report—The generated report is saved in the \MB7\companyname\Reports folder as an .rtf or .pdf.

Printed checks have a unique check number and an electronic deposit number that correspond to the payroll record number. Sage 100 Contractor users with checks pre-printed with check numbers should run check runs in sequence.

Printing direct deposit payroll checks creates and prints a non-negotiable check and supplies the employee with a record of the payroll. You have three options for printing direct deposit checks in 5-2-4 Payroll Checks.

Direct deposit is limited to employee payroll only. Sage 100 Contractor does not support electronic payment or electronic transfer of funds for such things as:

• Federal, state , or local taxes
• Child care support payments
• Wage garnishment