Table of Contents
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 use 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 helps people learn how to set up and use the direct deposit payroll feature, so they can be more comfortable with 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:
- 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.
- 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.
- 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.
- 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-
- 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 Setting.
- 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.
- When the prenotification message appears, push the OK button.
Read This: Sage 50 Canada 2021 Download
- 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. We will activate their service.
- In the table, provide the employee’s bank account and his allocation preferences.
- Finally, click on Save.
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.
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.