PR Direct Deposits Overview

1 Create a bank record for the employee banks used in the direct debit process.

When a direct deposit deduction is added to an employee record, you will attach a bank record and enter a bank account number. The bank record will contain the bank routing, transit and check digit number of the direct deposit bank account. The bank record is separate from the bank account number so that if you have multiple employees that use the same bank account, you only have to enter the routing, transit and check number once.
The information entered onto the bank record will generally be pulled from a voided check submitted by the employee.
- If the employee submitted this information through the Direct Deposits page of the Employee Self Service online application, this information must be approved through the PR Direct Deposits process (PR> Direct Deposits). Click here for information on PR Direct Deposits.
Open the Bank Maintenance window (SS> Maintenance> Bank).
The Bank Maintenance window will display all of the banks that have already been created in the application. Multiple employees can use the same bank as long as the route, transfer number and check digit are the same on all of the employee bank accounts (sometimes two bank accounts can be drawn on the same bank, but they have a different routing, transit and check digit number). Make sure the bank does not exist before creating a new bank.
Click here for information on Bank Maintenance.
Make sure the Used for Clearing House toggle is checked.

2 Set up the bank account that will be used by your organization to process the direct deposits.

The employee bank account information is set up on the employee record in the Payroll module, but the bank account used by your organization to process the direct deposits must be set up using the Bank Account Maintenance window (SS> Maintenance> Bank Account).
The bank accounts you are required to set up depends on the format of the export file you must create for the bank that will process your direct deposits. The format of this file will vary depending on the bank.

If you are required to include the immediate origin bank on the ASCII file that is submitted to your bank (this will depend on the bank that processes the direct deposits), you will have to set up a destination bank account (bank you are sending the ASCII file to) and an origin bank account.
If you are not required to include the origin bank account information on the ASCII file, you will only have to set up the destination bank account information.
Review the information your bank provided to you to determine what bank account information must be included on the export file.

Open the Bank Account Maintenance window (SS> Maintenance> Bank Account).
The Bank Account Maintenance window displays all of the bank accounts that have been created in the application.
Click here for information on Bank Account Maintenance.
The bank account information will be used on the ASCII file that will be sent to the bank that will process the direct deposits.

3 Set up the Payroll module to interface with the Clearing House module.

Open the Setup window (PR> Utilities> Setup).
Open the General tab.
Check the CH Interface toggle. This will enable the Payroll module to create the Direct Deposit batch in the Clearing House module when a Computer Checks batch is processed that contains employees set up to use direct deposits.
Open the Checks tab.
Check the Show direct deposit information toggle if you would like the bank account information to display on the check stub of the physical check.
Click the Save button .
Click here for information on the Payroll module Setup window.

4 Create the direct deposit deductions.

Direct deposits are processed on employees by creating direct deposit deductions and then attaching those deductions to the employee records. When paychecks are generated on those employees (PR> Computer Checks), the paychecks will create a Direct Deposit batch in the Clearing House module (CH> Direct Deposits).
Open the Deduction/Benefit Selection window (PR> Maintenance> Deduction/Benefit). This window displays all of the deductions and benefits that have been created in the application.
Springbrook recommends that you follow a specific convention when creating direct deposit deductions.

Flat amount direct deposit codes should begin with one Z (ZBOA) and percentage amount direct deposit codes should begin with two Zs (ZZBOA).

This will group all direct deposit deductions at the bottom of the Deduction/Benefit Selection window, check proof lists and check stubs.
This also allows you to differentiate flat amount and percentage of net direct deposit deductions.

All direct deposit deductions should contain the bank code attached to the direct deposit deduction (ZBOA is a deduction containing bank code BOA).

This convention will also allow you to differentiate which bank code is attached to a direct deposit deduction.

Direct deposits that contain the same information should be labeled with a number (ZZBOA2, ZZBOA3, etc.).

You cannot attach more than one deduction of the same deduction code to an employee record (PR> Maintenance> Employee> Deductions tab). If there is an employee that must have multiple direct deposit deductions of the same direct deposit code, then you must create a unique direct deposit deduction code for each amount that must be deposited. This means you will have to create multiple direct deposit deduction codes that contain the same information.
For example, if an employee would like a flat amount deposited in a checking and savings account of the same bank, you would have to create a direct deposit deduction code for the deposit into the checking and another deduction for the deposit into the savings account.
Numbering the direct deposit deduction codes allows you to differentiate which deduction codes are exactly the same.

The description of the direct deposit deduction should include whether it is a flat amount or percentage of net deduction.
Percentage of net direct deposit amounts are processed in alphabetical order based on the deduction code if there are multiple percentage of net deductions attached to an employee. If there is a percentage of net direct deposit code that should always be applied to the paycheck first, make sure it is early in the alphabet.
- Flat amounts are removed from the paycheck first and then percentage of net amounts as applied.

Click ADD to create a new deduction code. This will open the Deduction and Benefit Maintenance window.
Click here for information on Deduction Maintenance.
There are two types of direct deposit deductions: flat amounts and percent of net pay.

Flat amount deductions are for direct deposits of a flat amount (For example, $100).

The amount of the flat direct deposit deduction is set up on the employee record when the deduction is attached to the employee.

Percentage of net deductions are for direct deposits that are a portion of the net paycheck amount (For example, 100% of the net paycheck).

The percentage of net amount is typically set up on the direct deposit deduction because they are usually 100%, but the percentage amount can be entered on the employee record.

If an employee would like 35% of their net paycheck in a savings account and the rest in checking, you would create a deduction for the savings account and enter the 35 percent on the employee record. Then you would create a deduction for the checking amount, but you would enter 100% on the deduction. (If you entered 65% on the deduction, the 35% would be deducted for saving and then 65% of the remaining paycheck amount would be placed in checking. This would leave a portion of the paycheck undistributed to the direct deposit.) Make sure that the deduction code on the savings amount comes before the deduction code of the checking account on the alphabet. If you have multiple percentage of net amount deductions attached to an employee, the deduction amounts will be processed in alphabetical order after the flat amounts have been removed. If the checking deduction is applied first, no amount will be distributed to the savings account.

Employees can have a flat amount deposited every month in addition having a percent of net.
Employees can also have multiple flat amounts, but only 1 deduction can be set up as 100% of net.
Employees can also have a flat amount direct deposit and then have the remaining pay put on a physical check.

Create a flat amount direct deposit deduction.
- Enter a direct deposit deduction code in the Code field that begins with a Z and contains the bank code of the bank that will be attached to the deduction. The deduction code can be up to six alphanumeric characters long.
- Enter a deduction Description that describes whether the deduction is a flat amount deduction code. Confirm that the description contains the bank code attached to the deduction.
- Select Bank in the Payee Type field.
- Use the Bank Code field to select the bank code of the direct deposit. This will determine the routing, transit and check number of the direct deposits attached to this deduction code.
  - Bank codes are created and maintained using the Bank Maintenance window (SS> Maintenance> Bank). Click here for information on Bank Maintenance.
- Check the Print on stub toggle so the direct deposit deduction will display on the check stub. If you do not check this toggle, the amount of the direct deposit will not display on the check stub.
- Open the Account tab.
- Enter the GL account you would like to credit for the amount of the direct deposit when the check is generated in the Default Credit Account section.
- Open the Calculation tab.
- Select flat amount in the Calculation Method drop-down.
- Create a revision. Click here for an overview on Revisions.
- Leave the Revision Steps section blank. The direct deposit deduction amount will be set up on the employee master record.
- Click the Save button when complete.
Create a percent of net amount direct deposit deduction.

Enter a deduction code in the Code field that begins with a ZZ and contains the bank code attached to the deduction.
Select Bank in the Payee Type field.
Use the Bank Code field to select the bank code of the direct deposit. This will determine the routing, transit and check number of the direct deposits attached to this deduction code.

Bank codes are created and maintained using the Bank Maintenance window (SS> Maintenance> Bank). Click here for information on Bank Maintenance.

Check the Print on stub toggle so the direct deposit deduction will display on the check stub.
Open the Account tab.
Enter the GL account you would like to credit for the amount of the direct deposit when the check is generated in the Default Credit Account section.
- You can enter only a portion of the GL account by selecting a GL account and then removing the fund. If you enter only a portion of the GL account, the fund will be pulled from the primary fund defined on the Setup window (PR> Utilities> Setup> General tab> Primary Fund field).
Open the Calculation tab.
Select Percentage of Net in the Calculation Method drop-down.
Create a revision in the Revisions section. Click here for an overview of Revisions.
Create a step amount in the Revisions Steps section.
Enter 100 in the Step 1 row of the Steps section.

If you would like to have multiple percentage of net direct deposit deductions on the same employee record, leave the step amount blank so that you can enter it on the employee record.

Click the Save button when complete.

Click here for information on Deduction Maintenance.

5 Add the deductions to the employee records.

Once the deduction codes have been created, attach the deduction to the employee records using the Employee Maintenance window (PR> Maintenance> Employee).
Click here for information on the Deductions tab of the Employee Maintenance.
Open the Employee Selection window (PR> Maintenance> Employee).
Open the Deductions tab. The deductions tab displays all of the deductions attached to the employee record.
Attach a direct deposit deduction to the employee record.

Attach a flat amount direct deposit deduction to the employee.

Click ADD to add a direct deposit deduction to the employee record. This will open the Deduction/Benefit Selection window.
Select a flat amount direct deposit deduction and click the Select button . The deduction will populate on the Deductions tab.
Enter the amount of the direct deposit in the Amount field.
Enter the employee bank account number in the Direct Deposit field.

If the bank account number is entered incorrectly, the account number will be flagged as invalid when the employee record is processed in a prenote batch.

Select Checking or Savings in the Account Type drop-down menu.

Attach a percentage of net direct deposit deduction to the employee.

Click ADD to add a direct deposit deduction to the employee record. This will open the Deduction/Benefit Selection window.
Select a percentage of net direct deposit deduction and click the Select button . The deduction will populate on the Deductions tab.
Click the Step field search button to select a step amount from a list. This allows you to select a step amount that is attached to the direct deposit record.

If you want to manually define the percentage of the net amount that will be deducted, enter the percentage of net in the Amount field instead of selecting a step amount. For example, enter 50 if you would like 50% of the net amount to be deducted.

Enter the employee bank account number in the Direct Deposit field.

If the bank account number is entered incorrectly, the account number will be flagged as invalid when the employee record is processed in a prenote batch.

Select Checking or Savings in the Account Type drop-down menu.

If you add more than one direct deposit deduction to an employee record, the flat amount direct deposit will be deducted first, and then percentage deductions. If there is more than one percentage direct deposit deduction attached to the employee record, the percentage direct deposits will be deducted from the paycheck in alphabetical order based on the direct deposit deduction code (PR> Maintenance> Deduction/Benefit> Select a direct deposit deduction> General tab> Code field).
If you have more than one percentage direct deposit deduction, the direct deposit deductions will be applied in alphabetical order and the percentages attached to those direct deposit deductions will be applied in that order. For example, if there are two direct deposit deductions attached to an employee record, both for 50%, and the net check amount is for $1000, $500 will go to the first direct deposit (50% of $1000 = $500) and $250 will go to the second ( 50% of $500 = $250). If you would like the net check amount to be split between the two direct deposit deductions, enter 50% on the first direct deposit deduction, and 100% on the second (50% of $1000=$500 and 100% of $500 = $500).

Click the Save button when complete.

6 After the direct deposit deductions have been attached to the employee records, create a prenote batch in the Clearing House module (CH> Direct Deposit> Create Prenote Batch).

A prenote batch will create zero dollar transactions on the employee records in order to verify that the bank account information entered on the employee records is correct. The prenote process generally takes 3-5 business days depending on the bank.

7 Process the direct deposits in a Computer Checks batch.

After a prenote batch has been processed, you are ready to process direct deposits on employees using the Computer Checks process. Process the employees through the Computer Checks process like usual and the direct deposit amount will be deducted from the net paycheck just like any other deduction. The checks generated during the Checks step will display the physical check amount and the ACH Checks and ACH Register steps will display the direct deposit check amounts. When the Computer Checks batch is committed, the direct deposit checks will populate in a Clearing House module Direct Deposits batch. Process the direct deposits in the Direct Deposits batch to generate the export file.
You can also generate ACH checks from the Manual Checks process. When a manual check is created (PR> Manual Checks> Timecards), deductions and benefits are manually attached to the check. If you manually add a direct deposit deduction, the Manual Checks process will generate a direct deposit transaction in a Clearing House module Direct Deposits batch with the Manual Checks batch is committed.

Payroll Module

Direct Deposits Overview