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Employer Setup – Screen 4

Employee Direct Deposits and Tax Payments

Table of Contents #

  1. Introduction
  2. Employee Direct Deposits
    • Enabling Direct Deposits
    • Setting Up Draft Days
    • Direct Deposit Methods
  3. Tax Payments
    • Federal Electronic Deposits (EFTPS)
    • State Electronic Deposits
    • Tax Impounding
  4. Troubleshooting
  5. Feedback

Introduction #

This knowledge base article provides comprehensive information about setting up and managing Employee Direct Deposits and Tax Payments in ProPay. It covers key features, configuration options, and best practices to help you efficiently use these functionalities.

Employee Direct Deposits #

Enabling Direct Deposits #

To enable direct deposits for an employer:

  1. Navigate to the Employer Set-up screen.
  2. Check the box labeled “Employee Direct Deposits.”
  3. Once enabled, employees set up for direct deposits will automatically be paid via this method.
  4. If unchecked, all employees will receive regular checks, even those set up for direct deposits.

Setting Up Draft Days #

It’s crucial to set up the correct number of days to draft the employer’s account in advance:

  1. Locate the “Days In Advance To Draft Employer’s Account” field.
  2. Enter the number of days recommended by your financial institution or ACH Processor.
  3. This ensures funds are available on the pay date.

Direct Deposit Methods #

ProPay offers three methods for processing direct deposits:

  1. Deposit Funds into one common ACH Processor’s Bank account
    • Easiest to set up
    • All transactions processed from one bank account
    • Disadvantage: Funds from all employers are intermingled
  2. Deposit Funds into separate Bank Account per employer
    • Requires setting up a separate bank account per employer with the same bank
    • Offers better protection against NSFs
    • More setup work required
  3. Single Client Direct Deposit File
    • Allows uploading the client’s direct deposit file to their bank website
    • Options to email the ACH file to the bank or client
    • Can be configured to include Employer Debit in the ACH file if required

To select a method:

  1. Go to the Employer Set-up screen
  2. Choose the appropriate method from the Direct Deposit method dropdown

Tax Payments #

Federal Electronic Deposits (EFTPS) #

To set up EFTPS ACH Debit method:

  1. Check the “Fed Electronic Deposits – EFTPS ACH DEBIT METHOD” box
  2. Enter the Federal PIN assigned to the employer in the “PIN #” field

State Electronic Deposits #

For state electronic tax deposits:

  1. Check the “State Electronic Deposits – ACH DEBIT METHOD” box
  2. Enter the State PIN (if applicable) in the “PIN #” field

Note: Some states use third-party processing services (e.g., California – GovOne, New Jersey – Axway)

Tax Impounding #

To set up tax impounding using the ACH Credit method:

  1. For Federal taxes:
    • Check the “Federal ACH Credit Payments” box
    • This enables automatic billing for fees
  2. For State taxes:
    • Check the “State ACH Credit Payments” box
    • Enter the State PIN (if applicable) for ACH Credit method
  3. Set the “Days In Advance To Draft Employer’s Account” for tax impounding

Troubleshooting #

  1. Direct Deposit not processing:
    • Verify the “Employee Direct Deposits” box is checked in Employer Set-up
    • Ensure the correct number of draft days is set
    • Check if the selected Direct Deposit method is properly configured
  2. Tax payments not being submitted electronically:
    • Confirm the appropriate boxes are checked for Federal and State electronic deposits
    • Verify PIN numbers are correctly entered
    • Check if the correct tax impounding method is selected
  3. Funds not available on pay date:
    • Review and adjust the “Days In Advance To Draft Employer’s Account” setting
    • Consult with your financial institution or ACH Processor for recommended lead times

Feedback #

We value your input to improve our documentation. If you have suggestions or encounter issues not addressed in this article, please contact our support team through the ProPay software help menu or visit our website at https://www.Paysoft.com.

For additional information, refer to the following related topics in the Employer Set-up screens:

  • Employer Set-up Screen-1
  • Employer Set-up Screen-2
  • Employer Set-up Screen-3
  • Employer Set-up Screen-5