Prenoting

Some banks require that you prenotify them of direct deposits before you send the direct deposit to an employee's account. On the bank account, you define whether direct deposits for this account must be prenotified.

Prenoting required

If a bank account requires prenotification, the first time Payroll processes a new direct deposit, Payroll creates prenotifications and updates the direct deposit distribution from Not Prenotified to Prenotified. Payroll processes direct deposits when you create payments during the payroll cycle. You can prenote directly by running payments normally or for prenotification only.

The first time you process a new direct deposit, Payroll prenotes it only and the employee receives a physical paycheck.

Note: 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, Payroll updates the Prenotified status to Accepted when you calculate earnings and deductions for the employee. The employee receives pay as a direct deposit.

Prenoting not required

If a bank account does not require prenotification, the first time Payroll processes a new direct deposit, it updates the direct deposit distribution from Not Prenotified to Accepted when you calculate earnings and deductions. Payroll does not create prenotifications for these direct deposits, so it pays the employee via direct deposit immediately.