Sage 50 Direct Deposit Payroll

Sage 50 Direct Deposit Payrolls

Introduction

In Sage 50, direct deposit is a feature using which payments for various bills can be paid electronically right through your bank account. It is also used for digital payments of the salary of employees. In Canada, the direct deposit feature utilizes Electronic Funds Transfer while in the United States, it uses the Automatic Clearing House system. (ACH).

This blog aims to get its readers acquainted with the direct deposit payroll feature in Sage 50 and how you can set up and utilize it for seamlessly making and accepting payments. 

How to Setup Sage 50 Direct Deposit Payroll?

First, it is important to set up the Sage 50 Accounting Program to do Direct Deposits. Then you have to perform the following tasks:

  1. Registration- the first step is to register your software with a direct deposit service provider. Go to the service menu and for payroll, direct deposits select Employee Direct Deposit and for vendor direct deposits select Vendor Direct Deposits.
  2. Provide information- next is to provide the direct deposit information either in employee or vendor records. In the Direct Deposit tab, provide bank account information and direct deposit bank account information for employee card and vendor card respectively.
  3. Printer settings- now you have to select the form type and printer settings. For this, choose Reports and Forms from the Setup menu. Click Direct Deposit Payroll Stubs.
  4. Provide Email addresses- to send direct deposit stubs through email, enter their email addresses on the Personal tab.

Before setting up direct deposit payroll in Sage 50, you require the details of the company bank account that funds the direct deposit transactions. In addition, you will also the details of the employee’s bank account and allocation preferences.

Also Read: How to Integrate Payroll with Sage 50

Follow the Steps Mentioned Below to Set up Sage 50 Direct Deposit Payroll for Your Company-

  1. Providing bank information
    • Select Maintain and click on Company Information. Enter your company details.
    • Go to the Payroll list and choose Sage 50 Accounting Payroll Module with Direct Deposit.
    • Now click on Direct Deposit Settings.
    • When the Direct Deposit settings window opens, provide information related to the bank account which will be used to make direct deposit transactions. Then click Save.
    • On getting a notification that a prenote has been created for your company account, press the OK button.
  2. Providing information related to employee account.
    • Select Maintain and choose Employees/ Sales Reps.
    • From the Employee ID field, choose the employee.
    • Now, click on the tab Direct Deposit.
    • Click on Employee Uses Direct Deposit. The service for this employee will be activated.
    • In the table, provide the employee’s bank account and his allocation preferences.
    • Finally, click on Save.

Conclusion

We have covered all the necessary information and important steps, right from registration to the activation of the feature on the Sage 50 application in this blog. You are now all equipped and can now use the Sage 50 Payroll feature for timely payments to your employees and vendors. If you want any more information regarding Sage 50 or any of its features or any assistance regarding the setup of the payroll feature, feel free to call , use the chat feature on our Itztechy website or drop a comment on our social media handles.

FAQs

What is a Company Bank Account Prenote?

It is a zero-dollar transaction done by Sage 50 to test if the bank information provided by you is accurate.

How will I Know if the Prenotes Have Been Successfully Synced?

The prenote status field shows “Approved” when Sage is notified that they are synced successfully.

What are Allocation Methods?

The basis on which distribution of employees’ net pay in their bank accounts is decided.

Can I Provide more than one Allocation Method for one Employee?

Yes, you can select more than one allocation method for a single employee.