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Direct Deposit

Intro – Direct Deposit #

Use ACH Direct Deposit for transferring funds directly into employees’ bank accounts, bypassing the need for physical checks. Before you can do that, you need to configure the employee’s bank information which the bank needs to process an ACH credit transaction, such as their bank account number and its routing number.

Input of direct deposit 

  • Pay run: It could be any type of payroll whether regular, off-cycle or even termination payroll. However, you can select only 1 pay run per direct deposit. As each pay run may contains a number of paychecks for many employees.
  • Reimbursement and Employee advance. Unlike pay run, you can select more than 1 reimbursement or advance per direct deposit.

Direct deposit process only paychecks or reimbursement that have the payment method is “Direct Deposit” and ignore other methods. And please make sure that the cash/bank account specified in the pay run is one of your ACH bank account settings.

Output of direct deposit 

Acci.cloud does not have any direct connect to any bank. Our application just generates ACH file as an output for Direct Deposit. You have to upload this ACH file to your bank providing the service by yourself.

Configure Employee Bank Information for ACH. #

  • Go to ACH on the left sidebar and select Direct Deposit.
  • Select Employees Tab.
  • Inside employee tab, there are list of all employees that have been created by Employee application. Direct deposit also allows you to pay the sales rep defined by Sales -> Salesrep application. You may notice that the bank routing number column is not empty (***) if the employee record was configured. Click or tap the pencil icon employee’s row you want to edit. Fill in the following fields.
    • Receiver Name: It is an employee name or sales rep name. This is a read-only field.
    • Bank Name: Enter the name of the employee’s bank.
    • Bank Routing Number: Enter 9 digits routing number of the employee’s bank.
    • Bank Account Number: Enter employee’s bank account number.
    • Name On Bank Account: Enter name on employee’s bank account.
    • Account Type: Checking or saving.
    • SEC Code:
      • PPD (Prearranged Payment and Deposit) is for personal/consumer transaction. For employee direct deposit, PPD is a default option.
      • CCD (Cash Concentration or Disbursement) is for corporate account or B2B transaction.
    • Click Save

 

Create a New Direct Deposit #

  • Go to ACH on the left sidebar, and select Direct Deposit
  • Choose Payrolls tab or Reimbursements tab.
  • Click Add New button.
  • For payrolls, select only 1 pay run.
  • For reimbursements, you can choose more than 1 documents to include into the ACH file.
  • Click Save.
  • The system will create a new direct deposit document. You’ll find the ACH output file under the ACH File tab. Simply click or tap the Download ACH File button to save it to your desktop. This file is for uploading to your bank to process the funds transfer.

Mark as Sent #

After uploading the ACH file to your bank, you can change a direct deposit’s status to ‘sent’ as follows.

  • Depending on the document type, choose Payrolls tab or Reimbursements tab.
  • Looking for the document by number and its status should be empty.
  • Click or tap “Mark as Sent” button.
  • The document’s status will change to ‘Sent’, and the button in the Action column will change to ‘Bank response received’.

Update ACH status after receiving bank confirmation #

ACH transfers are not instantaneous like wire transfers. They are processed in batches by the ACH Network (Nacha). The typical timeframe for an ACH transfer to complete is 1 – 3 days. After receiving a bank response, you can update the direct deposit’s status as follows.

  • Depending on the document type, choose Payrolls tab or Reimbursements tab.
  • Looking for the document by number and its status should be Sent.
  • Click or tap “Bank Response Received” button.
  • The ACH details will be shown on screen.
  • Indicate if there is a file returned from the bank due to rejected transactions by checking the option.
    • If there is no file returned, click Next then click “Update Status“. The direct deposit document’s status will change to ‘Complete‘.
    • If there is a file returned
      • check the option
      • click Next button
      • Pick a file return. System expects a text file located on your desktop.
      • If the file is successfully read, you should see its content in the text box below. As the file content is in Nacha format, system will display it in tabular and human readable format on the next page.
      • click Next button
      • Now you will see what receiver has a problem together with a return code, such as R02. Code explanation is provided at the end of return list. (R02 = Account Closed)
      • Option Bring those rejected entries back to ACH queue for re-create new ACH file.
        • Check this option if you still want to pay those employees by ACH direct deposit.
        • Do not check this option if you decide to pay those employees by other payment methods like check or cash.
      • click “Update Status” button.
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