Set up direct deposits

Tip: You must open a pay period to use this feature / functionality. Click the Pay Period menu and click the Enter button for the pay period you want to work with. The Payroll and Process menus become available.

A direct deposit arrangement allows your company to deposit employee payments directly into employee bank accounts instead of distributing cheques.

If your company has been approved for direct deposits, you must enter your employees' banking data and payment instructions into Powerpay for your employees to be paid by direct deposit. If no banking information is entered for an employee, that employee is paid with a paper cheque.

Powerpay can also be configured to import employee information from recognized workforce management systems. Contact your Customer Support Team for more information.

Prerequisites

Your company must be pre-approved for direct deposits before you can use this functionality. This process requires five business days. For more information, contact your Customer Support Team.

Tasks

Next steps

Set up and activate direct deposits so that your employees will receive money directly in the bank account they specify.

Direct Deposit Field Information

  • Enable Deposit (1st Deposit) - Select this check box to enable the direct deposit.

    If selected, the employee receives a direct deposit to this account. If this check box is not selected, NEITHER the first NOR the second deposit is made.

    Note: Remember to turn the direct deposit on when the employee resumes payment by direct deposit.

  • Financial Institution - From the list, select the institution for this direct deposit.

    If you are entering a Credit Union, and the institution number on the cheque is 879, select Manitoba Co-op from the list.

    Note: This list includes all the financial institutions to which Dayforce can send deposits. Each financial institution is identified by both a number and a name in the list. Be sure to verify both items of information before you make your choice.

  • Transit No. - Enter the transit number for the branch to which the deposit is made. The transit number is a five-digit number that identifies the branch location of the bank where the deposit is routed.

  • Account No. - Enter only the numeric digits of the employee's account number - no dashes or spaces.

  • Enable Deposit- Select this check box to enable the additional direct deposit. If selected, the employee receives a direct deposit to this account.

    If you clear this checkbox, the additional deposit does NOT disable the other deposits.

    Note: Remember to select the checkbox on the additional direct deposit when the employee resumes depositing into this account.

  • Priority - When multiple direct deposit accounts are set up and enabled, the deposits occur in the order: Deposit Priority 1 through 5 and then Primary Deposit.

    When selecting a deposit priority, you can select a priority already in use. The existing priority changes as follows:

    Example: Add a new deposit priority
    If deposits are already enabled with priorities 1, 2, 3 and 4 and a new deposit is added with priority 2, when the page is saved deposit priority 4 is automatically moved to priority 5, deposit priority 3 is automatically moved to priority 4, and deposit priority 2 is automatically moved to priority 3.

    Example: Change a deposit priority
    If deposits are already enabled with priorities 1, 2, 3 and 4 and deposit priority 2 is changed to priority 4, when the page is saved deposit priority 3 is automatically moved to priority 2, and deposit priority 4 is automatically moved to priority 3.
    If deposits are already enabled with priorities 1, 2, 3 and 4 and deposit priority 3 is changed to priority 1, when the page is saved deposit priority 1 is automatically moved to priority 2, and deposit priority 2 is automatically moved to priority 3.

  • Deposit Type (dollar value or percentage) - Select either the Dollar Value or the Percentage option to indicate whether the Second Deposit Amount refers to a dollar value or a percentage of the employee's pay.

  • Deposit Value - Enter a dollar amount or a percentage of pay (to two decimals) to deposit to this account.

  • Deposit Override Value - (Powerpay Traditional) Enter a value (in dollars only) that the employee will have deposited in the account for ONLY this pay.

    This override value applies only to the employee's Regular Payment and for the current pay period. The value entered is cleared after it is processed.

    Note: Additional Deposit amounts are not processed on Extra payroll runs (this applies to both an employee's regular payment and second payment). All net pay is allocated to the employee's first bank account. If you prefer that the additional deposit is allocated to the employee's account for an Extra run, determine the dollar amount and enter it in the Deposit Override Value field.