Processing Direct Deposit Payroll Transactions (Overview)

Related topics

Once your company and enrolled employees are set up and approved for direct deposit, you are ready to start generating and synchronizing payroll transactions. The following steps provide an overview of the direct deposit payroll process.

Note: Because Sage direct deposit takes three banking business days to process, you should always create and synchronize your direct deposit payroll transactions two business days before payday. See a chart that will help you plan payroll processing around official bank holidays.

Create payroll transactions as you normally would: In either the Payroll Entry or Select Employees--Filter Section window, you choose the employee or employees you want to pay.

If you want to print a non-negotiable direct deposit advice for your enrolled employee or employees, do one of the following before saving the payroll transaction(s):

In the Payroll Entry window, select the Direct Deposit check box, and then select the Print button.
In the Select Employees to Pay window, select the check box in the DD column opposite each direct deposit employee you want to print an advice form for. Then select the Print button to print the forms.

Get step-by-step instructions for paying employees.

Save the newly created payroll transactions, and then print the Direct Deposit Pre-Sync Register report, which lists all direct deposit pre-notes and payroll transactions ready for processing.

Note: You should always print direct deposit advice forms and the Pre-Sync Register report before you synchronize direct deposit payroll transactions (step 2 below).

When payroll is complete, you are ready to synchronize direct deposit requests to your company financial institution. You do this in the Direct Deposit Confirmation window of the WebSync wizard.

Get instructions for syncing direct deposit payroll transactions.

Following sync, the transactions are transmitted through the ACH network to Sage 50.
Sage 50 makes sure the transactions are in order and then sends them on electronically, in the form of a request, to your company financial institution.
Your company bank processes the requests for direct deposit. It debits your company account for the needed funds as well as direct deposit fees. Then the bank withdraws the needed amount from your company account. The bank allocates and transmits the funds to the direct deposit employee's financial institution, where they are deposited in the employee's account(s). The direct deposit transaction shows up on the employee's next monthly bank statement.