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Direct Deposits System Setup

Direct Deposits Setup #

Overview #

This knowledge base article provides comprehensive guidance on setting up Direct Deposits within the ProPay payroll software. Direct Deposits allow for efficient and secure transfer of employee paychecks directly to their bank accounts. This article covers the essential steps and considerations for configuring Direct Deposits in ProPay.

Accessing Direct Deposits Setup #

  1. From the Client Functions menu, select Set-Up.
  2. Choose Direct Deposits.

Note: If your ACH Processor has specific instructions for the ACH File Layout and you need assistance, email us their specifications, and we will respond accordingly.

Configuration Fields #

ACH Bank or Processor Information #

  • ACH Bank or Processor: Enter the name of the bank, financial institution, or ACH processor that handles your clients’ employee paycheck direct deposits.
  • ACH Processor Phone Number and Contact: Provide the bank’s phone number and contact person for voice communications.
  • Processor Modem Phone Number: Enter the bank’s modem number for automatic calling when submitting Direct Deposit batch files.

Bank Details #

  • Bank Routing Number: Enter the 9-digit routing number. Consult your bank contact or check if unsure.
  • Bank Account Number: Provide the account number set up for clearing direct deposit debits and credits.

Transaction Descriptions #

  • Credit Description: Enter a description (max 11 characters) to appear on employees’ bank statements for credit entries.

Originator Information #

  • Originator ID: Used in the type “1” record of the ACH file. Usually your Federal ID or Financial Institution’s 9-digit routing number.
  • Regional ACH Processor Name (Optional): Used in the “1” record of the ACH file.
  • Regional ACH Processor Routing No (Optional): Used in the type “1” record of the ACH file.

Processing Settings #

  • Default Advance Draft Days: Specify how many days before the pay date to draft your client’s bank account.
  • SPAN Days: Used to filter transactions and warehouse ACH transactions if needed.
  • Draft the Employer’s Funds into your Account: Choose between two methods of preparing Direct Deposits File.
  • Create Single Company Batches within an ACH File: Enable to identify the source of each transaction.
  • Allow UN-Balanced ACH Transactions: Choose between Balanced or Unbalanced (Single entry) ACH Transactions.

Important Considerations #

  1. Consult with your ACH processor about acceptable methods for fund flow before creating and submitting ACH files.
  2. The choice of drafting employer’s funds affects the “5” record in the ACH file, determining which Federal ID number is used.
  3. Creating Single Company batches allows for better identification of transaction sources.
  4. Check with your Bank or 3rd Party ACH Processor about acceptable formats before submitting files.

Troubleshooting #

If you encounter issues while setting up Direct Deposits:

  1. Double-check all entered information for accuracy.
  2. Ensure your ACH Processor’s specific instructions are followed correctly.
  3. Verify that your bank account has sufficient funds for the transactions.
  4. Contact your ACH Processor or bank if you’re unsure about any specific requirements.

Additional Resources #

For more information, refer to these related topics in the ProPay software:

  • Direct Deposits Employee’s Setup
  • Direct Deposits Transmitting

Feedback #

We value your input! If you have suggestions for improving this documentation or encounter any issues, please use the feedback option in our ProPay software help menu or visit our website at https://www.Paysoft.com.