Set Up a Direct Deposit Employee
Use the Direct Deposit tab of the Maintain Employees/Sales Reps window to set up direct deposit information for an enrolled employee. You can establish as many as four direct deposit accounts to which the employee's payroll funds will be distributed. Follow these steps:
- From the Maintain menu, select Employees/Sales Reps.
- In the Maintain Employees/Sales Reps window, use the Employee ID field to enter or select the ID of the employee you want to set up.
- Select the Direct Deposit tab.
- Set up Account 1 first. In the Account Type field opposite Account 1, use the drop-down list to choose the proper type, either checking or savings.
- In the Routing/Transit Number and Bank Acct Number fields, enter these two account identification numbers as supplied by the employee on the Employee Authorization Agreement.
- In the Allocation Method field, use the drop-down list to choose among Amount, Percent, or Remainder.
- Do one of the following:
- If you've chosen the Percent allocation method, in the % (Percentage) field, enter the percentage of employee net pay that you want to distribute to Account 1. If you choose to distribute to only one account, enter 100%. Sage 50 keeps a running total in the Total Distributed field at the bottom of the window.
- If you've chosen the Amount allocation method, in the Fixed Dollar Amount field, enter the dollar amount of employee net pay that you want to distribute to Account 1. Sage 50 keeps a running total in the Total Distributed field at the bottom of the window.
- If you want to set up additional accounts, set them up in order following steps 4 through 7.
- When finished, select Save. A message appears telling you that a pre-note will be created for approval of direct deposit for this employee. Click OK. to dismiss the message.
- Repeat the steps above for each additional direct deposit employee you want to set up.
Important! When you set up accounts for an employee, you should set them up in the order in which you would like deductions made from the employee's net pay. Sage 50 always allocates funds to direct deposit accounts in the order in which they were set up. Therefore, when you set up an Amount account, in some cases there may not be enough net pay left to distribute to this account if it is one of the last accounts to be set up.
For example, say you've set up Accounts 1 and 2 as Percent accounts, Account 3 as an Amount account, and Account 4 as a Remainder account. You set up the accounts so that Sage 50 distributes 70 percent to Account 1, 20 percent to Account 2, and a fixed amount of $300 dollars to Account 3. Say that net pay for the employee in a given pay period is $700. Sage 50 would distribute 70% x $700 = $490 to Account 1 and 20% x $700 = $140 to Account 2, leaving only $70 to be distributed to Accounts 3 and 4—meaning a shortfall of $230 for Account 3.
You get approval by synchronizing the pre-note through the WebSync wizard. Approval can take up to six banking business days. Until you sync the note, the Pre-Note Status field opposite the appropriate account will read "Not Sent." Once the note is synced, the field will indicate that approval is "Pending." When the note is approved and approval notification synced to the Sage 50 desktop, the field will read "Approved." Tell me more about syncing employee pre-notes.
Note: To ensure the accuracy of the information you'll be syncing, you should always print the Direct Deposit Pre-Sync report before you sync either pre-notes or direct deposit payroll transactions.