Through this component, you can execute those activities that directly or indirectly result in payment of salary to each employee. These activities are

¡            Generating the direct deposit file

¡            Authorizing the direct deposit file

¡            Printing paychecks

¡            Voiding paychecks

Generating a direct deposit file

Through this activity, you can enable the system to generate a direct deposit file. Direct deposit is a method by which employees’ salary is paid. It is an electronic transfer of the payment, from a company / organization into an individual’s saving or checking account. To make it happen, the company must first generate and forward the direct deposit file to its bank. The direct deposit file will contain all the required information for the bank to make payments by electronic fund transfer.

See How the generation of the direct deposit file culminates in the payment of salary to the employee

Authorizing the direct deposit file

After the direct deposit file is generated, you must authorize it before forwarding it to the company bank.

Printing the direct deposit file

Through the “Print Pay Check” activity, you can enable the system to print paychecks of any range of employees. Printing paychecks is applicable for those employees whose payment method has been defined as “Check”, in the “Set Payment Method with Direct Deposit” activity. 

Voiding paychecks

Through this activity, you can declare a damaged check as a “void instrument”. You can also reverse the entire payroll computations for the employee, if there was a mistake in the computations. This activity is applicable for only those employees whose payment methods have been defined as “Check”, in the “Set Payment Method with Direct Deposit” activity.

 

Getting familiar with the activities inside     

Go to the activity…	…to carry out task
Generate Direct Deposit File	Generating the direct deposit file
Authorize Direct Deposit File	Authorizing the direct deposit file
Print Pay Check	Printing the paycheck
Void Pay Check	Declaring the paycheck as void instrument

 

                       

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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The information contained in the direct deposit file

The direct deposit contains

¡            The bank account details of the company such as account number, account type and branch routing number

¡            The bank account details of the employee such as account number, account type, branch routing number

¡            Payee name

¡            The individual identification number

¡            The amount to be credited.

 

How the generation of the direct deposit file culminates in employee payment

After the company forwards the generated direct deposit file to its bank, the bank sends the direct deposit file to the Automated Clearing House.

Note: The generated direct deposit file can be forwarded as a hard copy, e-mail or any other method.

The Automated Clearing House refers to the information in the direct deposit file, and accordingly forwards this file to the specified employee banks. On the effective date of payment, the concerned bank automatically credits the account of the payee with the amount specified and debits the company’s account accordingly.