Processing Payroll Direct Deposit/Electronic Funds Transfer

After processing payroll details in Payroll Payments, you can set up the payroll direct deposit/electronic funds transfer (EFT) to credit payroll amounts directly to employees' bank accounts.

Configuring Payroll Direct Deposit/Electronic Funds Transfer

In Payroll Payments, the Electronic Funds Transfer form appears if you have configured the following:

• You enabled the Post net payroll directly to bank and Direct deposit for bonus/adjustments options on the General tab of the Payroll Setup form in Settings > Payroll > General in the desktop application.
• You configured bank accounts, payment methods, and other direct deposit information for the employee in the Direct Deposit grid of the Accounting tab in the Employees hub (Hubs > Employee > Employees).
• You performed an initial test direct deposit, to verify the employee's bank account.

Crediting Methods

When this feature is enabled, you can process a payroll direct deposit/electronic funds transfer in one of four ways:

• An employee's entire pay amount to a single account
• An employee's entire pay amount to multiple accounts
• A portion of an employee's pay amount to a single account
• A portion of an employee's pay amount to multiple accounts

Payroll Direct Deposit/Electronic Funds Transfer Output

When you process direct deposits, Vantagepoint generates the following:

• A file using Automated Clearing House (ACH) format: In a format that is accepted by most banks, you send this file to your bank after you process payroll for the period. You configure the details of this file on the NACHA File Format tab in Settings > Cash Management > Banks
• Direct Deposit report: This report lists the employee number, employee name, Social Security number, bank ID, bank account number and type, direct deposit status, and direct deposit amount for each employee included in the direct deposit run.