Prenotify status

Some banks require that payroll systems prenotify them of direct deposits before sending the direct deposit to an employee’s account. You can enable this by specifying a prenotify status on the organization’s bank account.

If a bank account requires prenotification, then the first time HR Payroll processes a new direct deposit, prenotifications are created. The direct deposit distribution is updated from Not Prenotified to Prenotified.

HR Payroll processes direct deposits when you create payments during the payroll cycle. The first time you process a new direct deposit, the employee receives a physical paycheck. You can manually change the prenotification status from Prenotified to Accepted on the employee direct deposit distribution when the bank accepts the notification. The second time you process the direct deposit, the Prenotified status is updated to Accepted when you calculate payments for the employee, and the employee receives pay as a direct deposit.

If a bank account does not require prenotification, then the first time HR Payroll processes a new direct deposit, the direct deposit distribution is updated from Not Prenotified to Accepted when you calculate payments. The employee is paid by direct deposit immediately.