Direct deposit

Direct deposit is the process of automatically depositing employee wages into an employee's bank account. The employee does not receive a paycheck and might not receive a printed pay stub, depending on your organization's policies. In the United States, direct deposit is sometimes referred to as an ACH (automatic clearing house) deposit. In the United Kingdom, direct deposit is sometimes referred to as a BACS (bankers automated clearing services) deposit.

Employees can choose to have their pay directly distributed to as many as 99 bank accounts. Ninety-nine accounts are available so employers do not have to delete inactive distribution orders.

Employees can specify a partial distribution or 100 percent of their net pay.

Employees must have one default bank account. The default bank account is the account where any remaining balance is deposited. The bank account you select as the default is always processed last. You must define the default account as 100 percent of net so Payroll can distribute the total remaining balance of net pay to this account after Payroll processes all other distributions.

Before you can authorize direct deposits for an employee, you must verify that the direct deposit option is Yes for the bank account and the automatic deposit option is Yes on the employee record.

The direct deposit record must be activated before Payroll can automatically deposit a distribution. Payroll activates a direct deposit record when the value in the Prenotify Status field on Direct Deposit Distributions (PR12.1) is Accepted.