Enable additional direct deposits for an employee

You can set up additional direct deposit accounts for the employee if they request their payment be paid to multiple accounts (maximum six accounts). The maximum deposit value for an additional deposit is $99,000.

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. The amount deposited in the Primary Deposit is the remaining balance of the earnings after the deposits have been made in Deposit Priority accounts 1 through 5. If the earnings are unable to meet a priority deposit value, that deposit priority is skipped and the process continues with the next deposit priority.

Examples

Example 1: An employee has $1000.00 of net pay and 4 direct deposit accounts enabled (Primary Deposit and Deposit Priority 1, 2 and 3). The deposit priority accounts are set up as follows:

  • Deposit Priority 1 - $500.00
  • Deposit Priority 2 - $30.00
  • Deposit Priority 3 - $100.00

The amount deposited in the Primary Deposit account is the earnings remaining after the deposits in the 3 deposit priority accounts ($370.00).

Example 2: - An employee has $500.00 of net pay and 6 direct deposit accounts enabled (Primary Deposit and Deposit Priority 1, 2, 3, 4 and 5). The deposit priority accounts are set up as follows:

  • Deposit Priority 1 - $100.00
  • Deposit Priority 2 - $50.00
  • Deposit Priority 3 - $500.00
  • Deposit Priority 4 - 10.00%
  • Deposit Priority 5 - $400.00

The deposits occur as follows:

  • Deposit Priority 1: $100.00. ($500.00 - $100.00) $400.00 remains to be deposited.
  • Deposit Priority 2: $50.00. ($400.00 - $50.00) $350.00 remains to be deposited.
  • Deposit Priority 3: $500.00. The deposit cannot be met so it is skipped. $350.00 remains to be deposited.
  • Deposit Priority 4: 10.00%. ($350.00 – $35.00). $315.00 remains to be deposited.
  • Deposit Priority 5: $400.00. The deposit cannot be met so it is skipped. $315.00 remains to be deposited.
  • Primary Deposit: the remaining balance, $315.00 is deposited.

Tip: You can set up all deposits without activating them by clearing the Enable Deposit check box for the additional accounts.

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 the employee for whom to add additional direct deposits from the Employee List.

  4. Click Add New Deposit.

  5. Enter the banking information and payment instructions for the additional deposit.

    1. Ensure the Enable Deposit check box is selected.

    2. Select the deposit 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.

    3. Enter the banking information from the information provided by the employee.

    4. Select the deposit type to indicate whether the deposit amount refers to a dollar value or a percentage of the employee’s pay.

    5. Enter a dollar amount or a percentage of pay (two decimal places) to deposit into this account.

      Note:

      • When Percentage is selected, the percentage is calculated on the remaining net pay to be deposited.

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

    6. If required, enter a value (in dollars only) to deposit to this account for this pay ONLY. The override value only applies to the employee’s Regular Payment and is for the current pay period only. The value is cleared once it is processed.

      Deposit override values are only available if the employee’s Primary and Additional Deposit are enabled.

      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. 

  6. Click Save.

  7. Repeat steps 3 to 5, as required, to add additional accounts.