Set Up and Generate Payroll Direct Deposits (Canada) Direct deposits in Sage 300 CRE is a process by which you generate a text file to electronically submit to your bank(s) as well as print notifications for the employees. You can set up direct deposits for an employee's entire net pay or for a portion of the net pay so that your bank can deposit it into the employee s bank account(s). Depending on your reporting needs, you can set up separate direct deposit deductions for each banking institution. Considerations Before you use Direct Deposits, consider the following: The direct deposit output text format follows the Standard 005 requirements. Confirm that your bank follows Standard 005 requirements. It is not always possible for banks to transfer funds to other banks within one day. Confirm processing times with your bank to determine how this will affect your Date funds available date. You may want to set a limit on how many direct deposit bank accounts an employee can have. You will need to set up a separate deduction for each employee direct deposit bank account. Determine whether you want to use direct deposit notifications or stubs only and order the appropriate stock. Create procedures to obtain required bank information from employees. For example, create a form for employees to complete and attach a voided cheque to. All of the set up steps must be completed for direct deposits to generate properly. Your Bank Account 1. From the Cash Management Setup menu, select Bank accounts and select your payroll bank account. 2. On the Contacts tab, verify your company s Bank Name and Account Number Note: Make sure that your company s bank is also selected on any pay groups that will be paid out of this bank account by going to Payroll and then Setup, Pay Groups. 2016 Sage Software, Inc. 1
Payroll 1. From the Payroll Setup menu, select Taxes, Tax Groups. 2. For the Tax level, select Federal, and enter CA in the Tax group. 3. Verify that you have entered the correct Federal ID number in Withholding EIN field. 4. From the Payroll Setup menu, select Deductions and set up at least one direct deposit deduction. Select either Direct Deposit (for partial or split direct deposits) or Net direct deposit (to send all of the employees net pay as a direct deposit) as the deduction type. Set up a separate deduction for each direct deposit that your employees will need. For example, if you have employees who want to deposit a fixed amount to one account and the remainder to another account, set up two different deductions. First, set up a deduction with a deduction type of Direct deposit for the first deposit. Then, set up another deduction with a deduction type of Net direct deposit for the second deposit. 5. If your direct deposit notifications will be printing only the stub portion without the face, from the Payroll Tools menu, select Modify Forms, Cheque Forms and select Stubs only as the cheque form to use when you generate direct deposits. Employees 1. From the Payroll Setup menu, select Employees. 2. Select an applicable employee and click Deducts. 3. Click List and select the applicable direct deposit deduction for the employee. 4. If the deduction is a partial direct deposit deduction, select the Calc Method and amount to be calculated for this deduction. 5. Select the Auto check box. 6. Click Direct deposit and enter the bank account information for each direct deposit deduction. 7. Click OK, Accept Line, Accept Table, Save. 8. Repeat steps 3 through 7 for each additional direct deposit deduction on the employee, if needed. 9. Repeat steps 2 through 7 to set up any additional employees for direct deposit, if needed. Note: You can add only one direct deposit with a deduction type Net direct deposit to an employee record and to an employee cheque. An employee can have multiple deductions with the type Direct deposit. 2 2017 Sage Software, Inc.
Generating Direct Deposits Employees who want a direct deposit set up for their net pay receive a direct deposit notification and stub produced by the Generate Direct Deposits task. Employees who request that only part of their net pay be issued as direct deposit will not receive a direct deposit stub but receive a stub when their cheque is printed. Your bank processes automatic deposits to employee bank accounts using the Standard 005 file that Payroll creates. Note: Direct deposit setup steps must be completed on employees before time is processed in order for direct deposits to automatically calculate. Direct deposits must also be generated before posting payroll. To generate direct deposits: 1. Enter earnings information using the Enter Time, Enter Cheques, or Process Payroll (for auto salaries) tasks. 2. If you entered earnings using the Enter Time or Enter Cheques task, select Process Payroll to process those earnings. 3. From the Tasks menu, select Generate Direct Deposits. 4. Enter the direct deposit information: a. Bank account b. Cheque form (This determines the appearance of the direct deposit notification and stub. Click List to select a different format than what prefills here). c. The File creation number will prefill. You can override this number if necessary. This number must be incremented by one from the last electronic file processed by the Destination Data Centre. d. Date funds available e. File creation date f. Direct deposit path (where to save the text file you will be sending to your bank. You can click the List button to browse to the location). Note that 3 files/documents are created when you generate direct deposit: Text file you are sending to the bank Direct deposit notification/stub (you can select to print this to file or to the printer) Direct deposit register (you can select to print this to file or to the printer) Click Options to specify additional direct deposit information required by your bank and click OK. Note: This information will come from the bank in order to comply with their specifications. 5. Click Printer Setup for the direct deposit notifications in the Printer Information area to specify whether you are printing to file or printing to a printer. 2016 Sage Software, Inc. 3
Note: You are allowed to select a 10-point maximum font size when printing direct deposit notifications. For notifications printed to a text file, always use the default font size of 12 points. 6. Select Direct deposit register from the drop-down list in the Printer Information area, and select print options for the Direct deposit register. 7. Click Start. Notes: If you are printing the notifications and/or register to a file and did not previously specify a name for the print file, you are prompted now for a file name. If you select the same print destination for the notifications and for the register, the notifications print first, followed by the register. If you need to make a correction to a cheque that has been direct deposited or that includes a partial direct deposit, you must first void the cheque using the Void Cheques task. You cannot delete direct deposited cheques using the Enter Cheques task. Payroll will not automatically submit the Standard 005 file to the bank. You must complete this step using the steps provided by your bank. 4 2017 Sage Software, Inc.
Generating Direct Deposits - Troubleshooting When generating direct deposits, issues or errors may arise. Here are some common issues and basic resolution steps to help you: Error/Issue Possible Cause Steps to Resolve NOTE: When an error appears in the Background Tasks window, always review Tools, Log Viewer to see if there is more detail in the message column. Asterisks print in any of the boxes on the direct deposit stubs The number of digits that needs to print is greater than the number that fits in the box on the direct deposit stub. 1. In the Generate Direct Deposits Print Selection window, select Printer Setup. 2. Click Change Font and select a smaller font size for printing. 3. Click OK two times. 4. Regenerate the affected stubs using Tasks, Generate Direct Deposits, Regenerate File and clear the Run number field. The Regenerate File check box does not appear when direct deposits need to be regenerated. Direct deposits have already been posted and cannot be regenerated. If direct deposits must be regenerated after posting they must be voided, retained as new, processed and generated again. Direct deposit won t generate for one or more employees. No information to print in Background Tasks Log Viewer says, Bank account number not set up. Employee and/or Bank routing number not set up. Employee Direct deposits do not have a status of printed. The direct deposit deduction ID is missing from the cheque. Bank account information is missing in the employee setup. Generate direct deposits. If errors appear, see below. Go to Setup, Employees, Deducts and make sure the Auto box is checked for the direct deposit deduction ID. Go to Setup, Employees, Deducts and click on the line of the direct deposit deduction ID. Then click on Direct deposit and fill in the missing information. Generate (or regenerate) as needed. 2016 Sage Software, Inc. 5
No information to print in Background Tasks Log Viewer says, Cheque not processed. Employee No information to print in Background Tasks Log Viewer has no additional information. Direct deposits do not have a status of Processed. Direct deposits being generated are partial. Go to Inquiry, Cheque Information, Cheque Activity and look at the Cheque Status column. If the direct deposits have a status other than Processed, they need to be processed in either Enter Cheques or Process Payroll. This is normal. Only employees with net direct deposits will receive notifications. If the employees have printed Cheques, the paystubs with the Cheques will also serve as the notifications. 6 2017 Sage Software, Inc.