Set up a direct deposit for an employee

You must be pre-approved for direct deposits before you can set up direct deposits for your employees. For more information, see Activating direct deposits for your business.

If direct deposit is not set up or selected, the employee will receive a cheque.

Note: Errors in direct deposits are usually detected when a new employee does not receive their first deposit. The cause is most often because deposit information was not obtained from a void cheque. It is strongly recommended that the employee submit a void cheque(s) to you before you enter direct deposit information.

Tasks

  1. Click the Pay Period menu and click the Enter button for the pay period you want to work with.

  2. Open the Direct Deposit page.Closed From the Payroll menu, select Hire/Profile > Direct Deposit.
  3. Select an employee from the Employee List on the left side of the page.

  4. Ensure the Enable Deposit check box is selected.

    Tip: You can set up all deposits, without activating them, simply by NOT selecting the Enable Deposit checkbox.

  5. Enter the employee’s banking data from the employee’s void cheque:

    • Financial Institution - From the list, choose the name of a financial institution.

    • Transit No. - Enter the 5-digit transit number that corresponds with the selected financial institution.

    • Account No. - Enter the account number.

    For more information see, Reading information from a void cheque.

  6. Click Save.

    Powerpay saves the data and displays it. The Add New Deposit button appears.

  7. If an employee requests that their payment be divided and paid into more than one account, click Add New Deposit. Dayforce can make direct deposits to a maximum of six accounts for each pay period. For more information see Enabling additional direct deposits for an employee.

    The Additional Deposit Detail section of the page appears.

  8. Ensure that Enable Deposit is selected.
  9. From the list on the Deposit Priority box, select the priority of this additional deposit.
  10. Enter the banking data and payment instructions for the second deposit.

  11. Select one of the following Deposit Type options:

    • Dollar Value - Choose this option to specify an actual dollar amount to be deposited in the additional deposit account for each pay period. In the Deposit Value box, enter the dollar amount.

    • Percentage - Choose this option to specify a percentage of the payment that should be deposited in the additional deposit account for each pay period. In the Deposit Value box, enter the percentage.

      Note:

      • When Percentage is selected, the percentage refers to the amount remaining net pay to be deposited, not the entire earnings

      • The maximum deposit value for an additional deposit is $99,000.

  12. (Optional) If you chose the Dollar value option in the previous step, you can specify a one-time dollar amount (not the default) to be deposited in the additional deposit account for the current pay period.

  13. Repeat steps 5 to 12 for each additional direct deposit account (maximum five accounts). For additional deposits, you can, optionally, specify a Deposit Override Value for the current pay period.

    Note: Additional deposit amounts are NOT processed on Extra payroll runs for both Regular and Second Payments. All net pay is allocated to the employee’s Primary account. To allocate earnings to additional deposit accounts for an Extra run, determine the amount and enter it in the Deposit Override Value field. 

  14. Click Save, to confirm all Direct Deposit settings.
  15. Repeat the procedure for each employee in the Employee List that requires direct deposit.