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. Navigate to the Compensation tab.Closed From the People menu, select People List > Compensation.

  2. Select the employee for whom to set up additional direct deposit accounts from the People List.
  3. Go to the Banking Information section.

  4. Click Add Additional Deposit.

    A new line is available in the Banking Information list.

  5. From the Priority list, select the priority of this additional deposit.

  6. Ensure the Enabled checkbox is selected.

  7. Enter the banking data from the person’s void cheque:

    • Select a Financial Institution from the list.
    • Enter the 5-digit transit number that corresponds with the selected financial institution.
    • Enter the account number.

  8. Select a deposit type, Dollar or Percentage and enter the amount to deposit.

    • Select Dollar to specify an actual dollar amount to be deposited in the additional deposit account for each pay period. In the Amount field, enter the dollar amount.

    • Select Percentage to specify a percentage of the payment that should be deposited in the additional deposit account for each pay period. In the Amount field, 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.

  9. Click Save.
  10. Repeat steps 4 to 9 for each additional direct deposit account.