Activate direct deposits for your business

Activating direct deposits allows some or all of your employees to have their payroll amounts deposited directly to their bank account rather than having to cash a payroll cheque.

You may have chosen not to activate direct deposits previously however you may wish to introduce this functionality for your payroll now. Introducing EFTs may alter your payroll input schedule, funding date and may require a change to your funding method. Pre-approval for this service is required.

Provided below is the information you need to know when including this payment option to your payroll.

Processing

Deposit Run – 4 Banking Days

In this example, we will say that Day 1 is the day you submit your payroll to us for processing and that Day 4 is payment date. We strongly recommend that you give yourself the full 4 days for processing to allow extra time for you to review your output and address any corrections, if applicable.

  • Banking Day 1: Customer runs payroll with Dayforce based on schedule provided.

  • Banking Day 2:

    • Payroll is available for distribution and customer has 24 hours to review and advise Dayforce of any problems. (Receipt of package is dependent on delivery time for your location)

    • Funds are due.

    • Pre-authorized debit is pulled from account.

  • Banking Day 3: Dayforce delivers magnetic tape with deposit information to the bank. Customer has until 12:00 p.m. CST today (the day before payment date) to place a stop payment on any direct deposit.

  • Banking Day 4: Payment date – employee accounts are credited. Although most employees will see the funds by 11:00pm the previous night, the bank has until the end of this banking day to process funds into the receiving account

Bill Payment Requirements

Funding is required to be received one banking day prior to payment date. Therefore, payment needs to be initiated during banking hours two banking days prior to payment date as funds are not reported to Dayforce by your bank until the following morning.

Submitting Banking Information to Dayforce

Upon gathering employee’s banking information, submit any EFT updates with your regular payroll input. For your own protection we recommend that you receive from your employees a voided cheque showing the encoded data. A sample cheque is located below to assist you with providing the correct information. Your Customer Support Team can also assist you with providing the right information from the encoding on the cheque.

If an employee does not have a chequing account, we recommend they contact their financial institution to get the complete banking information required for EFT, Including:

Employee Name & No: ______________________________

Bank # _ _ _

Branch Transit # _ _ _ _ _

Account Number: _ _ _ _ _ _ _ _ _ _ _ _

Bank /Financial Institution Name: ________________________________________________________

Bank Address: _________________________________________________________

Postal Code: __________________________

Note: Should an EFT be returned from a financial institution to Dayforce as “invalid account” or “incorrect banking information”, service fees apply.

Reports Supplied

Dayforce will supply the customer with a Payroll EFT Summary listing names, account numbers, and amounts which have been directed to employee accounts.

The Executive Summary will list any changes to banking information entered on the current run. Please ensure that you review all changes by 12:00 p.m. CST the day prior to payroll date. (See Stop Payments).

Stop Payments

Any stop payment on direct deposits must be placed by 12:00 p.m. CST the day prior to the date of deposit. After this time a deposit is effectively a cash payment and is not recoverable. Dayforce has no legal ability to go into your employees’ bank account and draw the funds back.

To place a Stop Payment, call 1-800-667-7867 (24 hours) and have ready:

  1. Your “stop/recall number” – your complete 5-digit employer number (located on the top left hand side of your payroll register).

  2. Cheque Sequence number (indicted by SEQ on your payroll register).

  3. Net amount of the payment to be stopped.

Record the stop reference number supplied in the event of a concern.

On cheque date the amount of the stop is sent back into your payroll bank account.

General Information

  • Any item that is rejected because the bank information is incorrect will have to be replaced by a manual cheque. Confirmation of a stop payment or rejected item will be printed with your next payroll. Our trust department receives a rejected deposit report daily and emails all affected customers with that information. Contact your Customer Support Teamif a contact has not been identified to receive these notifications.

  • You can have a mix of cheques and direct deposits on one payroll.

  • Direct deposits are assigned sequence numbers in the same way that cheques are.

  • You can have up to six deposits per employee per payroll. Service fees apply for each employee deposit.

  • Not all banking institutions presently utilize the “account verification formula”. Therefore, Dayforce is not able to provide warnings of all potential account coding problems. Your employee may advise your payroll department of a problem before Dayforce is notified.

  • A limit of $5,000.00 will be placed on any individual amount to be credited. Any amount owing to an individual in excess of this will be paid by cheque. This limit may be changed permanently, please contact your Customer Support Team if this is required.

*****It is extremely important that these controls are in place. Once the deposit has been made to the employee account it is effectively a cash payment and is not recoverable. You should carefully review the deposit information when it is received to ensure that it is correct.*****

Company Bank Account Changes

If you are paying for your payroll via pre-authorized debit and decide to change banks, new pre-authorized debit instructions must be received for your payroll to be drawn from this new account. Contact your Customer Support Team to request the form to complete and return with your new void cheque.

Note: We suggest you allow 5 banking days for the update to be processed. If forwarding instructions in advance, please note on the form the effective date.

Should you have further questions or wish to pursue the direct deposit option, please contact the Customer Support Team to finalize the details.

Tasks

  1. Contact your Customer Support Team who will inquire how long you have been with your financial institution and how many years you have been in business.

  2. Your request for direct deposits is reviewed by Dayforce's Trust Department. This process requires five business days. After the request has been reviewed, you will receive an email that advises you about the decision. If the request is approved, your Customer Support Team activates direct deposit functionality for your payroll.

  3. Verify that direct deposits have been activated.
  4. Open the Select Pay page.Closed Click the Pay Period menu. Click the payroll number for an open payroll.

  5. On the Edit Pay Period page, click your browser's Refresh button.

    If the Suppress all Deposits this pay? check box cannot be edited (is grayed out), direct deposit is not yet enabled. If you can clear the check box, direct deposits are now enabled for your company.

Employees receive direct deposits only if you have entered their banking information and enabled the deposit for each employee.

Next steps