Table of Contents
Setting Up Tax Impounds #
Overview #
This article provides comprehensive instructions for setting up Tax Impounds in the ProPay payroll software. Tax Impounds allow for the automatic withholding and payment of taxes through ACH (Automated Clearing House) transactions.
Accessing Tax Impounds Setup #
- Open the ProPay software
- Navigate to the Client Functions menu
- Select Set-Up
- Choose Tax Impounds
Configuration Steps #
ACH Bank or Processor Information #
- ACH Bank or Processor: Enter the name of your bank or ACH processor
- ACH Processor Phone Number and Contact: Input the contact details
- Processor Modem Phone Number: Enter the modem number for file submission
Account Details #
- Settlement Account Routing Number: Enter the 9-digit routing number
- Settlement Account Bank No.: Input the processor’s settlement account number
- Credit Description: Enter a description (max 11 characters) for bank statements
Identification and File Header Information #
- Originator ID: Enter your Federal ID or the bank’s routing number
- Regional ACH Processor Name (optional): Used in the “1” record of the ACH file
- Regional ACH Processor Routing No (optional): Also used in the “1” record
- Immediate Destination: Enter if different from Originator ID (positions 4-13, length 10)
Processing Configuration #
- Default Advance Draft Days: Set the number of days to draft before pay date
- SPAN Days: Configure for transaction filtering and warehousing
- Check box for drafting employer’s funds: Determine the fund flow method
ACH File Configuration #
- Create Single Company Batches: Enable to identify transaction sources
- Allow UN-Balanced ACH Transactions: Choose between balanced or unbalanced formats
Important Considerations #
- Consult with your ACH processor about acceptable methods before submitting files
- The drafting method affects the “5” record in the ACH file
- Most banks require third-party processors to open a settlement account
Troubleshooting #
If you encounter issues or need assistance:
- Check the ProPay help menu within the software
- Visit the online help center at https://www.Paysoft.com
- Contact your ACH processor for specific file layout instructions
Feedback #
To provide feedback on this documentation or report issues:
- Use the feedback option in the ProPay software
- Submit comments through the website’s contact form
- Email support with the subject line “Tax Impounds KB Feedback”
For additional support or questions not covered in this article, please contact ProPay customer support.