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.

Note: Be sure to record bank account information accurately. Banking institutions DO NOT verify employee's names and will deposit the amount of payment to the account you specify.
If the combination of transit and account numbers belongs to someone other than the employee, and that account is credited with the employee's pay, contact the financial institution directly to try to recover the funds. If the combination does NOT belong to anyone, the financial institution refunds Dayforce, and Dayforce credits your account. The credit and the corresponding details appear on your Funds Summary report.

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 direct deposit from the People List.
  3. Go to the Banking Information section.

  4. Ensure the Enable Deposit check box is selected.

  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.

  7. If an employee requests that their payment be divided and paid into more than one account, click Add Additional 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.

    A new line is available in the Banking Information list.

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

  9. Ensure the Enabled checkbox is selected.

  10. 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.

  11. 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.

  12. Click Save.
  13. Repeat steps 5 to 12 for each additional direct deposit account.