Direct deposit with EasyACCT

[Rpar]

Hello, 

I wanted to explore the option of using Direct Deposit with EasyACCT. Anyone use this feature? 

Trying to get an understanding of how it works. I understand you create a ACH file. But how has it worked and what is your process? 

How do you send the file to your bank, how much do they charge? ( I know fees may vary, I'm looking g for a ballpark number).

Is your clients account charged or are you charging your clients and then pay from your account. Any help is appreciated. 

I'm presuming ach files work for A/P too. 

Thanks

[nickeypoo72]

We do use the direct deposit feature for payroll checks in EasyACCT, but not A/P, so I can only speak from payroll experience. Have you reviewed the information in the Help Menu for how to process direct deposit transactions?  That is a good starting point. 

As for uploading file to the bank, every bank is different - as well as their fees.  Some charge a monthly fee, some charge a per item fee, and some charge both.  You will have to contact the bank directly and ask what they charge. Also, each bank should be able to walk you thru their process for uploading the NACHA file - again it differs for each bank.  You will also need to ask them for their NACHA spec sheet before you process any transactions so that you can make sure the file EasyACCT produces matches their specifications for processing direct deposits.  

Once you have everything set up, processing the files is a breeze!  

For what it's worth, in our experience, the local banks are much more user friendly to deal with than the national banks.

[Rpar]

Nickeypoo72,

Thank you for your helpful response. 

Can you provide any suggestions on where the funds come from? Do employee compensation go from employer to employee or does your firm collect the funds from the employer and then you pay the employee and taxes? 

I'm on my phone, so I'll research the help menu when I get a chance, bit from my experience it would answer any questions beyond processing payroll within EasyACCT. 

Thanks again  

[nickeypoo72]

Funds are transferred from the bank account the payroll checks are set up to come out of - IE, the employer's bank account.  Then they are deposited into each employees bank account that you have entered in their employee screen.  Obviously you will need to collect their banking info on some type of direct deposit authorization form.  I would HIGHLY suggest they provide you a voided copy of their check or a preprinted direct deposit authorization form from their bank with their banking information preprinted on it.  This will help avoid errors entering wrong bank info.  You would be surprised how many empployees we've had write down the wrong information.

As for payroll taxes - we pay those thru EFTPS and the various state & local agencies, we don't use EasyACCT to process those.  I don't even know if EasyACCT has that function or not - haven't looked into it as we have never had the need to use that type of function.

[Only4Me]

How do you manually edit a direct deposit file before uploading it to the bank?  For instance, if you entered the hours wrong for an employee, but already created the direct deposit file, is there a way to change the amount on the current direct deposit file?  I know how to fix the payroll check, I just don't know how to change the direct deposit file to reflect the correct amount.

[Tambra]

You need to find the ACH file, it's usually a WordPad document. You would have to find the line with the incorrect information, place your cursor where the information is and correct it. 

[Only4Me]

It has a bunch of numbers on it, so it's a little scary.  For instance, the direct deposit total is $218.50, but on the NACHA file it shows 1572780000218506270, so I would be afraid to change only the 21850 unless you are absolutely sure?

[nickeypoo72]

If it were me, I'd just delete the whole payroll batch and rerun it.  There are so many facets of that NACHA file that have to be just right in order for the bank to accept it.  But maybe there is someone here more experienced that can pinpoint all the items that will need corrected when you change that one number.

[Only4Me]

Yeah, that's what I've been doing, but dang when there are 30 employees in one NACHA file and I only need to change one, it sucks...LOL!  I appreciate everyone's response!!

[nickeypoo72]

I totally get it!  That's why we double check and triple check the payroll check register against the hours and the paychecks before we post anything.  I'm always more conscientious of the data entry for direct deposit payroll than regular check payrolls due to this fact - so much easier to void and rerun a check instead of the whole nacha file LOL!  Good luck!

[Tambra]

That's what I would do.

[Only4Me]

We definitely double check to make sure everything is correct!  When a client changes the hours after-the-fact, then there isn't anything we can do but re-run that check and it sucks deleting 30 of them just to fix one!