Direct Deposit Payroll Setup Introduction

Introduction to Payroll Direct Deposits

Direct deposit is a process where you create electronic files rather than paper payroll checks. These files are sent to your bank, and money is moved around by your bank as needed.

Here is how it works. You perform your basic accounting functions as usual. You prepare checks and payroll checks in Total Office Manager as you normally do. Instead of printing a check, you create a file that is sent to your bank via email or other means. Instead of handing a check to your coworkers or vendors, the bank uses the file you gave them to transfer money electronically. It’s all safe and easy.

You can still print a Notice of Direct Deposit and hand this to your coworkers if you wish.

Please see “All Topics Related to Payroll Direct Deposit” at the end of this article for a complete list of help pages related to payroll direct deposit.

Setting Up Direct Deposit – A Basic Overview

1. The first step is to contact your bank and request paperwork to get signed up. This is unrelated to Total Office Manager and must be done no matter what method you use to manage direct deposit.
2. Click Banking | Direct Deposit | Company Setup to open the Company Setup form. Fill out the various fields as needed. Click here to view the help topic on this.
3. Ask your employees if they would like to participate in the direct deposit initiative. If they do, they should fill out a permission\authorization form. Your bank should be able to provide you with a sample that you can use. We have also included one for you in Program Files\TotalOfficeManager\Documents. Or the folder where Total Office Manager was installed; if different.
4. Click Employees | Employee List. Select an employee, click | Menu | Direct Deposit | to open the Employee Direct Deposit Setup form. Fill out the various fields as needed. Click here to view the help topic on this.
5. You are now ready to process payroll and create a direct deposit ACH file that you will upload to your bank.
6. Optional: If you wish to pay 1099 vendors using direct deposit, you will need their permission. Again, your bank may have forms that you can use. Setting up vendors works just like employees. Click Banking | Vendor List. Select a vendor, click | Menu | Direct Deposit | to open the Employee Direct Deposit Setup form. Fill out the various fields as needed. Chick here to view the help topic on this.

Processing Direct Deposit

1. Write payroll and\or regular checks and usual.
2. Check the Direct Deposit checkbox on each check you wish to be part of the direct deposit. This option is on the check.
3. When you are ready to process direct deposit (this may be once a week or what period you decide), open the Process Direct Deposit List.

Direct Deposit Setup and Processing Recap

Step 1: Read the introduction to payroll direct deposit article

Step 2: Contact your bank to set up direct deposit (if you do not already have it).

Step 3: Enter your company’s direct deposit information. Click Banking | Direct Deposit | Company Setup to open the Company Setup form.

Step 4: Enter your employee’s direct deposit information. Click Employees | Employee List. Select an employee, click | Menu | Direct Deposit | to open the Employee Direct Deposit Setup form.

Step 5: Process payroll and create paychecks, as usual. Check the Direct Deposit checkbox on each check you wish to be part of the direct deposit. This option is on the check.

Step 6: Open the Process Direct Deposit List. Process the direct deposit and export the ACH file.

Step 7: Upload the direct deposit (ACH file) to your bank.

All Topics Related to Payroll Direct Deposit

Introducing Direct Deposit – Start Here
https://www.aptora.com/tips/direct-deposit-introduction

Initial Company Setup – Direct Deposit Company Setup List
https://www.aptora.com/help/direct-deposit-company-setup-list
https://www.aptora.com/help/direct-deposit-company-setup

Direct Deposit Employee Setup
https://www.aptora.com/help/direct-deposit-employee-setup

Process Direct Deposit for Payroll Checks
https://www.aptora.com/help/process-direct-deposit
https://www.aptora.com/help/direct-deposit-transaction-list

Viewing Historical Records of Direct Deposit
https://www.aptora.com/help/direct-deposit-ach-file-list

Optional – Direct Deposits for Vendors
https://www.aptora.com/help/direct-deposit-setup-vendor