To deposit all or part of an employee's pay to their nominated bank account, set up a bank account for the employee.
Employees can have their pay distributed to more than one bank account. For example, to a savings account, as well as other accounts for rent or loan repayments. In this instance, you will need to set up multiple employee bank accounts and set the bank account Type accordingly.
The employee bank account Type paid to the employee's bank account can be calculated by any of the following methods:
Value: a set amount is banked.
Percent of Net Pay: a percentage of the net pay is calculated and banked.
Remainder: the balance of the pay is banked.
📌 Notes:
You can only have one remainder bank account.
Every employee requires a remainder bank account type set up.
Use the remainder type for employees with only one bank account.
The value and percent of net pay calculation methods are generally only used for employees with multiple bank accounts.
Setups before creating an employee bank account
Before you can pay your employees using direct bank transfer, check the following setups are correct:
Set up a company bank account in Setups, Company, Company Bank Accounts, Maintain. See: Set up or edit a company bank account.
Go to Setups, Payroll, Options, Payroll Options, Options tab and in the Options task area, check Direct Bank Entry to Yes.
Press Accept (F9) to save the change.
Go to Payroll, Masterfiles, Employee Maintenance, Maintain.
On the Pay Details tab:
Set Payment Method to Bank.
Select a valid bank code in the Company Bank Acct field.
Click Accept (F9) to save the changes.
Create an employee bank account
To create an employee bank account:
Choose Masterfiles, Payroll, Employee Bank Accounts, Maintain.
Enter a Bank Code. This code must be a unique for every employee bank account.
🤓Tip:
You can use the same code as the employee code.
In addition, if the account Type is a value or a percent of net pay, you can add a V or P to the end of the employee code.
Enter the bank account details.
📌Note: For Australian bank accounts, enter the BSB and Account Number together with no spaces.
Select the Employee Code for this bank account to link it to the relevant employee.
🤓Tip: For Common bank accounts, where any employee can deposit money into, leave this field blank, e.g. Social club.
Select the calculation method in the Type field to determine the amount that will be deposited to this account (Value, Percent of Net Pay or Remainder as per descriptions above).
Set First Direct Bank Entry to Yes if this is the first time you are paying to this account.
Set Allow Disk Transfer to Yes.
Click Accept (F9) to save the new employee bank account.
Add the employee bank account to the employee standard pay
Go to Masterfiles, Payroll, Employee Standard Pays, Maintain.
Enter the Employee Code.
The function will be Modify Pay.
Click Accept (F9).
Scroll to the bottom of the timesheet lines to enter the bank line(s).
Select the New Line Type as B=Bank Transfer.
In the Code field, click the magnifying glass icon, and then select the required employee bank account code.
🤓Tip:
If the employee bank account is of Type Value, enter the amount you are paying to this account in the Value field.
If the employee bank account is of Type Percentage of Net Pay line to enter, you will not have to enter a value, it will calculate from the Net Pay value.
Enter the Remainder employee account bank line as a separate line AFTER the value or percent of calculated lines. The remainder line will automatically calculate the difference between the net pay and the value and/or the percentage of net pay lines above.
Click Finish (Esc).
At the Confirmation - Save standard employee pay message, click Yes to save the changes.
Click Close (Esc) to close the screen.
Edit an employee bank account
To edit an employee bank account:
Choose Masterfiles, Payroll, Employee Bank Accounts, Maintain.
Enter the Bank Code you want to edit.
Change the related details as required.
📌Notes:
You cannot change the Bank Code once created.
You would need to delete it and create a new code.
If pays have already been created using this bank code, it would be better to keep the old code and delete it after rolling over the financial year.
You could create a new bank code and swap out the old code in the standard pay so the new (correct code) is used from that point onwards. You would need to just weigh up if it is really required just to change the bank code.