payroll cs guide to handling direct...

PAYROLL CS® DIRECT DEPOSIT

Guide to Handling Direct Deposit version 2009.x.x

TL30473 (9/9/2016)

Copyright Information Text copyright 1998 – 2009 by Thomson Reuters/Tax & Accounting. All rights reserved. Video display images copyright 1998 – 2009 by Thomson Reuters/Tax & Accounting. All rights reserved. Thomson Reuters hereby grants licensees of CS Professional Suite® software the right to reprint this document solely for their internal use. Trademark Information The trademarks used herein are trademarks and registered trademarks used under license. All other brand and product names mentioned in this guide are trademarks or registered trademarks of their respective holders.

Payroll CS Guide to Handling Direct Deposit iii

Contents Introduction............................................................................................................... 1

Terms and definitions .......................................................................................................... 2 ACH ................................................................................................................................ 2 ACH files ........................................................................................................................ 2 ACH operator ................................................................................................................. 2 Effective date .................................................................................................................. 2 EPS files ......................................................................................................................... 2 InterceptEFT ................................................................................................................... 3 NACHA ........................................................................................................................... 3 Originator ........................................................................................................................ 3 Originating Depository Financial Institution (ODFI) ......................................................... 3 Prenote files ................................................................................................................... 3 Processing window ......................................................................................................... 3 Receiver ......................................................................................................................... 4 Receiving Depository Financial Institution (RDFI) .......................................................... 4

Overview of Payroll CS Direct Deposit .................................................................. 5 Options for handling ACH processing ................................................................................. 6

Working with InterceptEFT ............................................................................................. 6 Working directly with individual banks ............................................................................ 7

Working with InterceptEFT ...................................................................................... 9 Establishing services with InterceptEFT ............................................................................ 10

Application and agreements ......................................................................................... 10 Fees for ACH processing services ............................................................................... 10 File submission and transmission testing ..................................................................... 10 Transmission schedules and deadlines ........................................................................ 11

Standard 4-day processing window ......................................................................... 11 Premium 3-day processing window ......................................................................... 12 Vendor and tax payment 5-day processing window ................................................. 12 Billing and tax impound processing ......................................................................... 12 Payroll impound processing ..................................................................................... 13

Contents

iv Payroll CS Guide to Handling Direct Deposit

InterceptEFT processing days with example scenarios .................................................... 13 Standard 4-day processing window examples ............................................................. 13

Scenario one............................................................................................................ 13 Scenario two ............................................................................................................ 13

Premium 3-day processing window examples .............................................................. 14 Scenario one............................................................................................................ 14 Scenario two ............................................................................................................ 14

5-day processing window examples (for tax payments and vendor checks only) ........ 15 Scenario one............................................................................................................ 15 Scenario two ............................................................................................................ 15

Transaction types ......................................................................................................... 16 Setup steps in Payroll CS and the Direct Deposit module ................................................ 16

Request and install the Direct Deposit Transmission license from Thomson Reuters .. 16 Complete the global setup steps .................................................................................. 17 Complete the client and employee setup steps ............................................................ 18

File / Client Properties dialog ................................................................................... 18 Setup / Checkbook dialog ........................................................................................ 19 Setup / Employees window ...................................................................................... 19

Complete the vendor setup steps ................................................................................. 20 Setup / Vendors window .......................................................................................... 20 Impound transaction setup ...................................................................................... 21 Alternate accounts for employee direct-deposit setup ............................................. 21 Setup of calculation profiles when using alternate accounts .................................... 22

Processing steps ............................................................................................................... 22 Prenoting test files ........................................................................................................ 22 Recording the payroll information ................................................................................. 23 Reviewing the transactions in the EPS file before creating the ACH file ...................... 23 Editing the ACH file before you transmit ....................................................................... 24 Creating the ACH direct deposit file .............................................................................. 24 Transmitting the ACH file to InterceptEFT .................................................................... 24 Receiving file confirmations from InterceptEFT ............................................................ 26 Connecting to InterceptEFT without transmitting files ................................................... 27 Using the Impound features ......................................................................................... 27

Setting up bank information ..................................................................................... 27 Setting up the Impound checkbook .......................................................................... 27 Enabling the Impound checkbook ............................................................................ 28 Assigning the client impound checkbook ................................................................. 28 Adding direct deposit information to the withdrawal checkbook ............................... 28 Specifying required information in the Impound Funding dialog .............................. 29 Setting up processor information ............................................................................. 30 Setting up vendors for impound ............................................................................... 30 Prefunding checks for impound ............................................................................... 31 Post funding checks for impound ............................................................................. 32 Creating manual fund transactions for impound ...................................................... 32

Child support direct deposit overview ................................................................................ 33 Setting up the deduction item ....................................................................................... 33 Setting up direct deposit information ............................................................................ 33 Setting up the disbursement unit as a vendor .............................................................. 34 Creating a zero balance test file ................................................................................... 34

Contents

Payroll CS Guide to Handling Direct Deposit v

Processing payroll and child support payments ........................................................... 34

Working Directly with Individual Banks ............................................................... 37 Establishing bank services ................................................................................................ 37

Direct Deposit with Individual Banks Setup Example ........................................ 41 Working directly with individual banks ............................................................................... 41 Restoring the sample data ................................................................................................ 42 Direct deposit scenario ...................................................................................................... 43 Adding banks for direct deposit ......................................................................................... 43 Setting up the client checkbook for direct deposit ............................................................. 45 Setting up the client properties for direct deposit .............................................................. 46

Modifying the Header record in the ACH file ................................................................ 48 Setting up the direct deposit deduction items .................................................................... 48 Setting up employee direct deposit information ................................................................. 50

Exercise for setting up employee direct deposit information ......................................... 53 Creating a Prenote test file for direct deposit .................................................................... 54 Creating the ACH Detail Report ........................................................................................ 56 Updating the account status .............................................................................................. 58 Entering payroll data for direct deposit .............................................................................. 58 Using alternate accounts for direct deposit ....................................................................... 59 Displaying the list of checks .............................................................................................. 60 Printing the Unprinted Checks report ................................................................................ 61 Printing the direct deposit payroll checks .......................................................................... 64 Printing the payroll reports ................................................................................................ 65 Creating the ACH file ........................................................................................................ 67 Reversing transactions ...................................................................................................... 71 Viewing the ACH file ......................................................................................................... 72 Removing a transaction .................................................................................................... 73 Working with vendor direct deposit ................................................................................... 74 Making electronic depository tax payments....................................................................... 77 Child support direct deposit overview ................................................................................ 78

Setting up the deduction item ....................................................................................... 78 Setting up direct deposit information ............................................................................ 78 Setting up the disbursement unit as a vendor .............................................................. 78 Creating a zero balance test file ................................................................................... 78 Processing payroll and child support payments ........................................................... 79

Removing the setup example direct deposit banks ........................................................... 79

Payroll CS Guide to Handling Direct Deposit 1

Introduction This guide covers the unique benefits and features available when using Payroll CS® and its optional add-on Direct Deposit module, which are both part of the Creative Solutions Accounting™ (CSA) software.

This guide also provides assistance in setting up and processing direct deposit for your payroll clients and includes the following:

A brief overview of the features and functionality of the Payroll CS Direct Deposit module.

An overview of options for handling ACH processing for direct deposit — working with InterceptEFT™, or working with individual banks.

Detailed information about direct-deposit setup and processing for Payroll CS and Direct Deposit module users who choose InterceptEFT as their ACH processor.

An overview of the setup and processing steps that are typically required by individual banks (for users who prefer to choose this option for ACH processing).

A walkthrough example covering setup and processing issues for a client with employees who have elected direct deposit for all or a portion of their payroll checks.

Note: This guide assumes that you are a licensed user of both Payroll CS and the Direct Deposit module, and that you’ve already reviewed the Payroll CS Getting Started guide and the Payroll CS Tutorial.

Introduction

2 Payroll CS Guide to Handling Direct Deposit

Terms and definitions

ACH The Automated Clearing House (ACH) network is a nationwide system for interbank transfers of electronic funds. It serves a network of regional Federal Reserve Banks processing the distribution and settlement of electronic credits and debits among financial institutions. ACH payments include direct deposit of payroll; business-to-business payments; and federal, state, and local tax payments, as well as other types of electronic funds transfers.

ACH files An ACH file is a simple ASCII-format file that adheres to Automated Clearing House specifications. A single ACH file holds multiple electronic transactions — much like a manila file folder that is used to store and transmit dozens of sheets of paper with information related to a single topic.

Each transaction within an ACH file carries either a credit or a debit value. Typically, a payroll ACH file contains many credit transactions to employees’ checking or savings accounts, as well as a balancing debit transaction to the employer’s (that is, your client’s) payroll account.

ACH operator An ACH operator is a central clearing facility operated by a private organization or a Federal Reserve Bank on behalf of participating financial institutions, to or from which financial institutions transmit or receive ACH transactions.

Effective date An “effective date” is attached to each and every ACH transaction. For payroll transactions, the effective date represents the day when debit amounts would actually be withdrawn from the employer’s payroll account and credit amounts would be deposited to an employee’s bank account.

An effective date cannot fall on a weekend or on a Federal Reserve holiday. If a transaction were to be sent with an effective date falling on a weekend or bank holiday — or on a date that has already passed (known as a “stale date”) — the transaction would automatically be tagged to settle on the next business day. What that means for your firm as payroll processor is that you need to monitor effective dates carefully because those dates affect when you must transmit your ACH files.

EPS files EPS (electronic payment system) files are commonly referred to as “transaction files” or “ACH transactions.” They store, for example, employees’ net pay amounts and financial account information. Typically, multiple EPS files make up what is the more well known direct-deposit file, the ACH file.

Introduction


InterceptEFT InterceptEFT (intercepteft.com) is a third-party processing agent that processes funds electronically via the Automated Clearing House. Payroll CS user firms can use InterceptEFT to process payroll direct deposit for their clients.

Disclaimer: InterceptEFT is an unaffiliated third party that some of our customers have engaged to provide direct deposit, tax payments, ACH processing, or credit card merchant services.

NACHA The National Automated Clearing House Association (NACHA) oversees the ACH network and is primarily responsible for establishing and maintaining operating rules for the network. All financial institutions moving electronic funds through the ACH system are bound by the NACHA Operating Rules, which cover everything from participant relationships and responsibilities to implementation, compliance, and liabilities. The NACHA rules are specific and quite detailed — but with nearly seven billion transactions and a combined dollar value of $20 trillion having moved through the system during the year 2000 alone — it’s clear that adhering to a strict set of rules is crucial to the smooth and successful operation of the ACH system. To learn more about NACHA and the ACH rules, point your Internet browser to nacha.org.

Originator An ACH Originator is typically a company that directs a transfer of funds to or from a consumer account.

Originating Depository Financial Institution (ODFI) The ODFI is the financial institution that deposits ACH files, on behalf of the Originator, into the ACH network.

Prenote files Prenote (or prenotification) files are zero-dollar entries sent prior to the first live entry to notify the Receiving Depository Financial Institution (RDFI) of future payments and to test the validity of account information.

Processing window “Processing window” refers to the time period required to initiate and complete the instructions included within an ACH file. The processing window begins when ACH files are submitted to ODFIs and ends when transferred funds are posted to the receivers’ accounts.

http://www.interceptcorporation.com/

http://www.nacha.org/

Introduction


Processing window example To illustrate the scheduling time frame, a weekly payroll schedule for a Friday pay date is shown below. A schedule for a standard 4-day processing window would look like the following:

Monday Tuesday Wednesday Thursday Friday

Processor sends file to InterceptEFT

InterceptEFT pulls funds (collects money)

InterceptEFT sends payroll credits to banks

Banks pay employees

Receiver The Receiver is the person or organization that has authorized the Originator to initiate an ACH entry (for example, a direct deposit transaction) to the Receiver’s account with an RDFI.

Receiving Depository Financial Institution (RDFI) The RDFI is the financial institution that receives ACH entries from the ACH Operator and posts the entries to the Receiver’s accounts.


Overview of Payroll CS Direct Deposit

The Direct Deposit module is a seamlessly integrated add-on module to the Payroll CS software within CSA. It enables you to process and manage electronic payroll check deposits for your payroll clients. In addition, it offers the convenience of making electronic payments to vendors, tax deposit agencies, 401(k) plan administrators, and so forth.

The Direct Deposit module functions by automatically creating electronic transaction files (called EPS files) from paycheck information in Payroll CS. The program then combines these electronic transactions into larger files that are formatted to meet the required Automated Clearing House specifications for electronic transmission to banks and other institutions within the ACH network.

The Direct Deposit module enables you to easily create ACH files that hold payroll transactions not only for multiple employees, but for multiple clients as well.

The Direct Deposit module creates standard, NACHA-format ACH files that are complete and ready for electronic transmission through the ACH system. Client and employee bank account information and employee-specified direct deposit amounts are entered into the program during the setup process within the CSA software.

The check printing process in Payroll CS automatically triggers the creation of the EPS files within the Direct Deposit module. During check printing, the program looks for all employees for whom direct deposit information has been previously set up and approved and then automatically creates the electronic transactions for those employees. The payroll administrator within your accounting firm can then use the commands within the Direct Deposit module to select one or more client transaction files to include within the ACH file.

After the ACH file has been created, Direct Deposit module users electing to use the ACH processing services provided by InterceptEFT (who have already requested and received the Direct Deposit Transmission license from Thomson Reuters and who have already established the required written agreements with InterceptEFT) can transmit their ACH files directly to InterceptEFT from their Payroll CS software.

Alternatively, users may opt to send their ACH files via some other method to a bank or other processing agent for transmission though the ACH system.



Options for handling ACH processing The Payroll CS Direct Deposit module enables you to choose either of two options for handling the transmission of ACH files on behalf of your payroll clients. These two options are addressed separately in this guide, but please note that you may choose either option on a client-by-client basis.

Working with InterceptEFT Disclaimer: InterceptEFT is an unaffiliated third party that some of our customers have engaged to provide direct deposit, tax payments, ACH processing, or credit card merchant services.

Accounting CS integrates with InterceptEFT to enable you to send electronic payments of your clients’ payroll directly to their employees' checking or savings account and make payments to non-taxed employees and child support payments.

Note the following considerations when choosing whether or not to use this third-party processing agent.

InterceptEFT tracks file submission dates, cutoff times, file status and confirmations, and fee structures and also ensures that files meet the special requirements of individual banks.

InterceptEFT can automatically transmit business-to-business (vendor) payments and payments to federal, state, or local taxing authorities via the InterceptEFT direct transmission service.

No additional software is required for ACH file transmission. All transmissions of electronic files are made directly from your Payroll CS and Direct Deposit module software to InterceptEFT.

InterceptEFT provides daily file confirmations, transaction reports, detailed monthly statements of transaction processing, and free technical support regarding any file adjustments or corrections that you may need to make.

If you’ve already set up relationships with individual banks and have been successfully handling direct-deposit processing for your clients, you may not want to alter a process that has already been working well for you.

Note: For step-by-step instructions on working with InterceptEFT to set up and process direct deposit for your Payroll CS clients, see the section in this guide entitled “Working with InterceptEFT” that begins on page 9.



Working directly with individual banks Working with individual banks has long been the most common avenue for processing direct deposit for payroll clients. The client’s bank has traditionally been the initiator of direct-deposit transactions through the ACH network — primarily because banks (Depository Financial Institutions, or DFIs) owned the original rights to participate in the ACH system.

For Payroll CS Direct Deposit module users, choosing this option for your payroll clients involves establishing a separate relationship with each client’s bank to accept ACH files, or having one bank to agree to handle the ACH processing for all of your payroll clients and then following the specific requirements of each bank regarding file setup information and structure as well as the mode of transmission.

Note the following considerations when choosing whether or not to work with individual banks for processing direct deposit.

If your firm has already set up agreements with individual banks, you’ve been successfully handling direct-deposit processing for your payroll clients, and those processes are working well for you and for your clients, there is no need to make any change at all.

If your firm prefers to establish one-to-one relationships with individual banks, you may find that choosing this option would more closely fit your interests than would choosing to work with InterceptEFT as your single ACH processing agent.

Note: For details about using this option for handling direct deposit for your payroll clients, as well as for instructions on setup and processing within Payroll CS and the Direct Deposit module, see the section in this guide entitled “Working Directly with Individual Banks,” which begins on page 37.


Working with InterceptEFT Disclaimer: InterceptEFT is an unaffiliated third party that some of our customers have engaged to provide direct deposit, tax payments, ACH processing, or credit card merchant services.

In this chapter we walk you through the actions necessary to establish an account with InterceptEFT and then to set up and process your direct-deposit clients through InterceptEFT.

Please keep in mind that to accomplish direct transmission of ACH files from Payroll CS to InterceptEFT, you must first request and install the Direct Deposit Transmission license from Thomson Reuters and also establish services with InterceptEFT. You then need to complete the client and employee setup in Payroll CS in the specific manner described in this chapter, so please review the following sections very carefully.

Working with InterceptEFT


Establishing services with InterceptEFT There are several important components involved in establishing services with InterceptEFT, and each of these components is discussed in greater detail within this section:

Completing and submitting an application form and associated materials.

Preparing and submitting agreement forms.

Understanding the file submission and testing requirements.

Understanding and complying with the required transmission schedules and deadlines.

Understanding the specific requirements and procedures for each type of transaction.

After carefully reviewing this section, please feel free to contact the Sales Department at InterceptEFT (866.431.9926. or http://www.intercepteft.com/thomson-reuters/contact.html) to let them know that you are a user of the Payroll CS Direct Deposit module within the CS Professional Suite® and to discuss any questions that you may have about the application process, processing services, and fee schedules.

Application and agreements To establish an account with InterceptEFT, an application form, a processor agreement, and an authorized signature form are required. All required InterceptEFT documents are available via their website at http://www.intercepteft.com/thomson-reuters/getstarteddirectdeposit.html.

The approval process typically takes less than two weeks after you have completed and submitted the EFT Application and supporting agreements. Upon approval, InterceptEFT will provide your firm with all reference information needed to use their service.

Fees for ACH processing services InterceptEFT charges a monthly per-client maintenance fee, plus per-transaction processing fees. (For specific fee amounts, please refer to Schedule B of their Processor Agreement form.)

File submission and transmission testing No transmission testing is necessary because that has already been done for you.

After you have finished creating the ACH file, click the Transmit button* on the Maintain ACH Files dialog. You need only supply an active Internet connection and enter the personal login ID, password, and PIN provided to you by InterceptEFT.

* The Transmit button appears on the dialog only after you have requested, downloaded, and applied the Direct Deposit Transmission license, as described on page 16 of this guide.

http://www.intercepteft.com/thomson-reuters/contact.html

http://www.intercepteft.com/thomson-reuters/contact.html

http://www.intercepteft.com/thomson-reuters/getstarteddirectdeposit.html



The file ID modifier is automatically incremented each time you click the Transmit button to send an ACH file to InterceptEFT.

Note: The ID modifier is used in the filename to help InterceptEFT track the number of files it receives for processing. Because InterceptEFT can accept up to 36 files from the same PIN per day, the file ID modifier automatically increments first from 0 to 9 and then from A to Z. Please do not make manual edits in this field.

Transmission schedules and deadlines NACHA rules state that if an ACH Operator makes a credit entry available to a bank by 5:00 p.m. (bank’s local time) on the banking day prior to the Effective Date, the bank must make that credit available to the Receiver (the employee, for example) at the opening of business on the Effective Date. Opening of business is defined as the later of 9:00 a.m. (bank’s local time) or the time the bank’s teller facilities and ATMs are open for customer account withdrawals.

The daily deadline for transmitting ACH files to InterceptEFT from the Payroll CS Direct Deposit module is 7:00 p.m. Central Time. This allows time for InterceptEFT to check transmission files for proper effective dates and to make adjustments if necessary. There is no restriction on the number of times throughout the day that you may transmit ACH files from Payroll CS to InterceptEFT.

InterceptEFT also adheres to the processing schedule of the Federal Reserve Banks. Each year, the Federal Reserve Banks issue a calendar of bank holidays throughout the year that are non-ACH processing days (that is, invalid effective dates). These “closed” dates should be incorporated into your processing window just as if they were Saturdays or Sundays. A calendar of the Federal Reserve Bank holidays can be obtained from the InterceptEFT website (intercepteft.com).

Standard 4-day processing window To meet a Friday pay day using the standard four-day schedule would require that files be submitted to InterceptEFT by the cutoff time on Tuesday, however earlier ACH transmissions would be required during holiday periods. A schedule example for a Friday payday is shown in the following table:

http://www.interceptcorporation.com/



Monday Tuesday Wednesday Thursday Friday Processor sends

file to InterceptEFT

InterceptEFT pulls funds (collects money)

InterceptEFT sends payroll credits to banks

Banks pay employees

Premium 3-day processing window If you or your payroll clients require a faster turnaround, InterceptEFT also offers a premium service to enable a three-day schedule. A schedule example for a Friday payday is shown in the following table:


file to InterceptEFT.

InterceptEFT pulls funds (collects money); sends payroll credits to banks.

Banks pay employees.

Note that if a bank holiday were to fall on the Friday, the ACH files would need to be transmitted to InterceptEFT one day earlier (Tuesday) for a Thursday rather than a Friday pay day. Otherwise, InterceptEFT would be required to change the effective date to the next business day and employees would not get paid until Monday.

To specify the processing window required for your client, mark the appropriate option in the Direct Deposit tab of the File / Client Properties window. The complete setup and processing steps are covered in the section of this document entitled “Setup steps in Payroll CS and the Direct Deposit module” that begins on page 16.

Vendor and tax payment 5-day processing window For vendor and tax payment transactions, InterceptEFT requires a 5-day processing window. To ensure processing can be completed without any unexpected delays, send vendor and tax payment transactions in an ACH file separate from payroll transactions. The effective entry date must be 5 days from the submission date to InterceptEFT. For example, if you submit a file on Monday, the effective entry date would be Friday, as shown in the following table.

Monday Tuesday Wednesday Thursday Friday Processor sends file to InterceptEFT

InterceptEFT pulls funds (collects money).

InterceptEFT sends collected funds to banks.

Collected funds post to Vendor / Tax Agency accounts.

Billing and tax impound processing For billing or tax impound transactions, the effective entry date is handled differently. The effective entry date can be as soon as the next available banking business day. However, there is a 3-day hold on the funds after the effective entry date. Make sure you set the effective entry date as early as necessary to accommodate the 3-day hold on the funds.

To ensure processing can be completed without any unexpected delays, send billing and tax impound transactions in an ACH file separate from payroll, vendor payment, or tax payment transactions.



Payroll impound processing Similar to billing and tax impound transactions, for payroll impound transactions the effective date can be as soon as the next available banking business day. However, there is a 2 day hold on the funds after the effective entry date. Be sure to set the effective entry date as early as necessary to accommodate the 2 day hold on the funds.

InterceptEFT processing days with example scenarios These scenarios are provided to help you more clearly understand the InterceptEFT processing windows. InterceptEFT begins counting transmission days based on the date you send the file. The transmission days are numbered below the illustrations.

First, here is a glossary list of terms in the InterceptEFT calendar.

Processor sends file to InterceptEFT. This is when the client takes the payroll file created in CSA and sends it to InterceptEFT.

InterceptEFT pulls funds (collects money). This is when InterceptEFT takes the money from your client’s bank.

InterceptEFT sends payroll credits / collected funds to banks. This is when InterceptEFT forwards the funds to the Federal Reserve for disbursement to banks.

Banks pay employees. This is when employees are paid.

Standard 4-day processing window examples

Scenario one In this scenario, you send a direct deposit file to InterceptEFT on Tuesday for employees to be paid on Friday. On Wednesday, InterceptEFT pulls funds from the client’s bank, on Thursday the credits are sent to the Federal Reserve for disbursement to banks, and on Friday, the banks pay the employees.



InterceptEFT pulls funds

(collects money)

InterceptEFT sends payroll

credits to banks

Banks pay employees

1 2 3 4

Scenario two In this scenario, you send a direct deposit file to InterceptEFT on Wednesday to be paid on the effective date (based on the check date) of Tuesday of the following week. Thursday is a hold day, on Friday, InterceptEFT pulls the funds from the clients bank. On Monday of the following week, credits are sent to the Federal Reserve for disbursement to banks, and on Tuesday the banks pay the employees.



Hold day InterceptEFT pulls funds (collects money)



1 1 (hold) 2

Monday Tuesday Wednesday Thursday Friday InterceptEFT sends payroll credits to banks

Banks pay employees

3 4

Premium 3-day processing window examples

Scenario one In this scenario, you send a direct deposit file to InterceptEFT on Wednesday for employees to be paid on Friday.

Monday Tuesday Wednesday Thursday Friday

Processor sends file to InterceptEFT


(collects money) and sends payroll credits to banks.

Banks pay employees

1 2 3

Scenario two In this scenario, you send a direct deposit to InterceptEFT on Monday for employees to be paid on the effective date (based on the check date), which is Friday. In this case, Tuesday and Wednesday would be considered hold days. Then on Thursday, credits are sent to the Federal Reserve for disbursement to banks, and on Friday the employees are paid.



(collects money) and sends payroll credits to banks.

Banks pay employees

1 1 (hold) 1 (hold) 2 3



5-day processing window examples (for tax payments and vendor checks only) A 5-day processing window is used only for tax payments and vendor checks.

Scenario one In this scenario, you send a tax payment to InterceptEFT on Monday to be paid to the agency on Friday. On Tuesday, InterceptEFT pulls the funds from the client’s bank, Wednesday is a hold day, on Thursday InterceptEFT sends credits to the Federal Reserve for disbursement to the bank, and on Friday the bank pays the tax agency (posts the payment to the account).


InterceptEFT pulls funds (collects money).

Hold day InterceptEFT sends collected funds to banks.


1 2 3 4 5

Scenario two In this scenario, you send a tax payment to InterceptEFT on Tuesday to be paid on an effective date (based on a check date) of Friday of the following week. Wednesday of this week through Monday of the following week are considered idle days. On Tuesday, InterceptEFT pulls the money from the client’s bank, Wednesday is a hold day, on Thursday InterceptEFT sends money to the Federal Reserve for disbursement to the bank. On Friday, the bank pays the tax agency (posts the payment to the account).



1 (Idle) (Idle) (Idle)

Monday Tuesday Wednesday Thursday Friday InterceptEFT

pulls funds (collects money).

Hold day InterceptEFT sends collected funds to banks.


(Idle) 2 3 4 5



Transaction types InterceptEFT accepts the following types of transactions for ACH processing:

Payroll

Child support withholding payments

Direct vendor payments

Tax payments

Impounding for taxes

Impounding for billing or other

Impounding for payroll

Setup steps in Payroll CS and the Direct Deposit module Disclaimer: InterceptEFT is an unaffiliated third party that some of our customers have engaged to provide direct deposit, tax payments, ACH processing, or credit card merchant services.

Request and install the Direct Deposit Transmission license from Thomson Reuters

Contact Thomson Reuters, Professional Software & Services, to ask for the free-by-request Direct Deposit Transmission license that is required to activate the InterceptEFT functionality in your Payroll CS and Direct Deposit module software.

To purchase the Direct Deposit module as well as to request the Direct Deposit Transmission license that enables you to transmit ACH files directly to InterceptEFT, contact your CS Sales Representative at 800-968-8900 or via our website at https://tax.thomsonreuters.com/cs-professional-suite/contact.

If you are already a licensed user of the Direct Deposit module but want to request just the Direct Deposit Transmission license to add the ability to transmit ACH files directly to InterceptEFT, contact a CS Sales Representative at 800-968-8900 or via our website at https://tax.thomsonreuters.com/cs-professional-suite/contact.

Thomson Reuters will provide you with an updated software license for your CS Professional Suite Accounting Products software. When that file becomes available, complete the following steps to download it via CS Connect.™

1. Open your CSA software and choose File / CS Connect.

2. In the CS Connect dialog, mark the Retrieve licenses checkbox and then click the Call Now button to begin the download process.

Note: The Direct Deposit Transmission license is not required if you are already a licensed user of both Payroll CS and the Direct Deposit module and you choose to work with individual banks rather than with InterceptEFT.

https://tax.thomsonreuters.com/cs-professional-suite/contact





Important! To ensure that your ACH files will be transmitted to InterceptEFT correctly, you need to complete the steps outlined below exactly as described.

Complete the global setup steps You first need to set up InterceptEFT as one of your direct-deposit “banks” that will send or receive electronic payments on behalf of you and your clients. The steps in this section will make InterceptEFT available for selection as the Immediate Destination Bank for any of your payroll clients.

1. From the CSA main window, choose Utilities / Direct Deposit.

2. From the Maintain Electronic Transaction Files dialog, choose Setup / Bank Information.

3. In the Bank Information dialog, click the Add button and enter the following information for InterceptEFT:

Description InterceptEFT

Bank name InterceptEFT

RTN (routing/transit number) 0912-14847

4. Click the Enter button to save the record.

5. Continue adding a bank information record for each bank used by any of your

clients or their employees. Remember to verify the bank’s routing number prior to clicking the Enter button.



Notes

Because each bank has a unique routing number (RTN), any bank needs to be set up only once in Payroll CS to make that global bank information available for all clients and employees.

By default, the ACH banks list is sorted by Description, but you can click on any column heading to modify the sort order.

6. Click the Done button to return to the Maintain Electronic Transaction Files dialog.

7. Click the Done button to return to the CSA main window.

Complete the client and employee setup steps

File / Client Properties dialog 1. Open the client in CSA and then choose File / Client Properties.

2. In the Client Properties dialog, click the Direct Deposit tab and enter from the following table. (Also see the following illustration.)

Field Enter the following information: Immediate destination bank ID InterceptEFT

Immediate origin <Enter your own accounting firm’s 9-digit tax ID number.>

Immediate origin name <Enter your own accounting firm’s name, using up to 23 characters.>

Originating DFI bank ID <From the drop-down list, select the bank from which the funds will be debited.>

Processing window <Specify the processing window appropriate for the selected client.>

Important! All other fields in the Direct Deposit tab of the Client Properties dialog must be left blank.



3. Click OK to return to the CSA main window.

Setup / Checkbook dialog 1. From the CSA main window, choose Setup / Checkbook.

2. In the Checkbook Setup dialog, select the appropriate checkbook and then click the Edit button.

3. In the Direct Deposit tab, specify the withdrawal bank (client), account type, and status by selecting the appropriate information from the drop-down lists.

4. Click the Enter button to save the information, and then click the Done button to close the Checkbook Setup dialog.

Setup / Employees window Repeat the following for each employee who requests payroll direct deposit.

1. From the CSA main window, choose Setup / Employees.

2. In the Employees window, highlight the employee who will receive the direct deposit and click the Edit button.

3. In the Tax Withholdings and Deductions tab, verify that the employee record includes a deduction item for direct deposit.

4. If you are using journal entries, enter a GL number for the deduction item in the G/L Acct column. This is generally the same net pay GL number used for the checkbook from which the deduction is being taken.

5. Click the button for the direct deposit deduction item and enter or verify the information in the Item Properties dialog.



Note: If you have created a new direct deposit deduction item (rather than using the default CSA Direct Deposit deduction item), the item must be specified for the CSA direct deposit calculation in order to prompt creation of the EPS file. Choose Setup / System Configuration / Deduction Items. Edit the item you are using for direct deposit, click the Calculations tab, and then mark the CSA direct deposit checkbox.

6. In the Direct Deposit tab, enter or select the appropriate information as specified by the employee:

Select the employee’s bank ID from the drop-down list.

Enter the employee’s bank account number.

Select the employee’s account type from the drop-down list.

Enter either the amount or the percentage for the direct-deposit deduction.

Select the status from the drop-down list. (You may choose Approved, Suspend, Waiting, or Prenote / Zero Balance. Note that a “Suspend” status is used if the employee wants to temporarily stop the direct-deposit deduction. For Prenote information, please refer to the processing section below.)

7. If the employee is having funds direct deposited in more than one account, use the additional lines to enter the required information for those accounts.

Note: There is no limit for the number of accounts you can set up into which funds can be deposited.

8. Click the Enter button to save the information for the selected employee.

Complete the vendor setup steps

Setup / Vendors window If appropriate for your client, use the following procedure to set up a payroll agent vendor for direct deposit or, if applicable, for discretionary tax payments. (Please refer to the CSA help topics for more details about vendor setup, including information about the automatic creation of vendor checks for payroll agents using GL account triggers.)

1. From the CSA main window, choose Setup / Vendors.

2. In the Vendors window, select the vendor, click the Edit button, and then click the Direct Deposit tab.

3. In the Direct Deposit tab, enter or select the appropriate information as specified by the vendor:

To have payroll agent checks posted to a direct deposit account, mark the Process electronic payment checkbox.

Select the vendor’s deposit bank from the drop-down list.

Enter the vendor’s deposit account number.

Select the vendor’s account type from the drop-down list.



Select the status from the drop-down list. (You may choose Approved, Waiting, or Prenote / Zero Balance. For Prenote information, please see the “Processing steps” section that begins on page 22.)

Impound transaction setup Use the following procedure if you plan to impound money for tax, billing, or other purposes for your client:

1. In the CSA main window, choose Utilities / Direct Deposit.

2. In the Maintain Electronic Transaction Files dialog, choose Setup / Processor Information.

3. In the Processor Information dialog, enter your company name and tax ID number.

4. Click OK to save your information and close the Processor Information dialog

and then click Done to close the Maintain Electronic Transaction Files dialog.

5. Choose Setup / Vendors to open the Vendors window and then set up your firm as a vendor for your client. Please refer to the CSA help topics for more details about vendor setup.

6. In the Direct Deposit tab of the Vendors window, be sure to mark the Commercial account checkbox, which will activate the Impound type drop-down list. Select the appropriate impound option from this list.

7. When you have finished entering information, click the Enter button to save the vendor record and close the Vendors window.

Note: To impound money for tax purposes as well as for billing or other purposes, you must set up your firm as two separate vendors, one for each impound type.

Alternate accounts for employee direct-deposit setup A checkbox option called Activate alternate accounts on the Direct Deposit tab of the Employees window enables you to use a different direct-deposit setup configuration for the employee, and the Type field allows you to choose either the primary or alternate configuration when specifying the information for direct deposit. For example, if an employee has a fixed direct deposit of $100.00 to pay a bill from his normal payroll check, he may not want to make an extra payment if he receives a bonus check; the alternate account type enables the employee to direct deposit the bonus check into his regular checking account.

Use the following procedure to set up and use an alternate account for a check run:

1. In the CSA main window, choose Setup / Employees.

2. Select the appropriate employee and then click the Edit button.



3. Click the Direct Deposit tab.

4. Mark the Activate alternate accounts checkbox.

5. Select Alternate from the drop-down list in the Type field.

6. In the Direct Deposit Information grid, enter the employee’s information for the special check run.

Note: If this information is not set up or does not have approved status when paychecks are processed, a live check will be produced.

7. Click the Enter button to save the employee, and then close the Employees window.

Setup of calculation profiles when using alternate accounts 1. Choose Setup / Calculation Profiles.

2. Click the Add button to create a new calculation profile and enter the appropriate information on the General tab.

3. Click the Deduction and Withholding Overrides tab.

4. Mark the Use alternate direct deposit account checkbox.

Note: This checkbox will be available only if the Activate alternate accounts checkbox in the Employees window has been marked for at least one employee. The program automatically uses the primary direct deposit information for employees who do not have the Activate alternate accounts checkbox marked.

5. Click the Enter button to save your choices, and then click Done to exit the Calculation Profiles dialog.

Processing steps

Prenoting test files When setting up any new employee direct-deposit information and before sending actual payroll data, the status for all accounts on the Direct Deposit tab of the Setup / Employees window should start as Prenote / Zero Balance. Prenote files are used to verify the receiver’s account number, name, and bank routing number prior to any transmissions of live payroll files for ACH processing.

Note: While sending prenote files is not mandatory, InterceptEFT does strongly recommend using prenote files for file testing prior to transmitting live data. Please allow 5 to 6 business days after transmitting a prenote file before sending ACH files with live payroll data. This gives the RDFI time to respond if account information has been recorded incorrectly.

After you have transmitted a prenote file, the status of all accounts associated with the file automatically changes from Prenote to Waiting. However, if corrections are



needed, you can make those changes and transmit another prenote file. (To create another prenote file, you must change the status of all accounts from Waiting back to Prenote. This will prevent actual payroll information from being rejected.)

1. Choose Utilities / Direct Deposit.

2. From the menu bar in the Maintain Electronic Transaction Files dialog, choose Tasks / Prenote Accounts. A message appears telling you the prenote file was created successfully. Click OK to dismiss the message prompt.

3. Choose File / Refresh. Note that the prenote file you just created now appears in the left pane of the dialog.

4. Double-click the file to move it to the right-hand (Selected) pane, and then click the Create ACH File button.

5. In the Create ACH File dialog, enter Prenote as the file name. Note that the effective entry date defaults to the system date.

6. Transmit the prenote file to InterceptEFT (by following the steps that begin on page 24).

7. After the prenote account information for the client and for the employees has been verified and prior to sending actual payroll data to InterceptEFT, you need to change the status of all accounts from Waiting to Approved. From the Maintain Electronic Transaction Files dialog, choose Tasks / Update Account Status, mark the Approved Status option, and click OK.

Recording the payroll information 1. Choose Tasks / Payroll Check Entry.

Please note that if you’re using alternate accounts, you need to select the appropriate calculation profile. Press F3 and choose Options from the context menu. In the Data Entry Options dialog, choose the calculation profile appropriate for this check run by selecting it from the drop-down list, and then click OK to return to the Payroll Check Entry window.

2. Enter the payroll data for this check run and then print the payroll checks. The check printing process in Payroll CS automatically triggers the creation of the EPS files within the Payroll CS Direct Deposit module, which then automatically creates the electronic transactions for employees with Approved-status direct-deposit setup information. You can then select one or more EPS files to include within the ACH file.

Reviewing the transactions in the EPS file before creating the ACH file 1. From the CSA main window, choose Utilities / Direct Deposit.

2. In the Maintain Electronic Transaction Files dialog, double-click the EPS file corresponding to the payroll just processed to move it to the right-hand (Selected) pane. Use the client ID, date, time, and type information to help you select the correct file. Note that files still unprocessed are already selected.

3. To view or print the EPS file information for a final review before proceeding, choose File / View / Detail.



Editing the ACH file before you transmit If necessary, you may use the following procedure to delete one or more transactions from a file.


2. From the Maintain Electronic Transaction Files dialog, choose Tasks / Remove Transactions. (Note that this command is available only when a single file appears in the pane on the right side of the Maintain Electronic Transaction Files dialog.)

3. Enter the check number of the record you would like to delete.

4. After the check has been removed, the program displays a prompt reminding you to void the check in the Payroll Check Entry window.

Creating the ACH direct deposit file 1. From the CSA main window, choose Utilities / Direct Deposit.

2. In the Maintain Electronic Transaction Files dialog, double-click each EPS file in the left-hand pane that should be included in the ACH file to move those files to the right-hand (Selected) pane. Files still unprocessed are already selected.

3. Click the Create ACH File button.

4. In the Create ACH File dialog, specify the file information, supplementary information, and the effective dates, and then click OK.

Note: Although you can override the date in the Effective Date field of the Create ACH File dialog, the program ignores those overrides and automatically assumes the effective date according to your selection of either the standard 4-day or the premium 3-day processing window (in the Direct Deposit tab of the Client Properties dialog). However, you can override the effective date in the Transmission dialog, prior to transmitting your files.

Transmitting the ACH file to InterceptEFT 1. From the Maintain Electronic Transaction Files dialog, choose File / Maintain

ACH Files.

2. From the Maintain ACH Files dialog, double-click the ACH file in the left-hand pane that is to be transmitted to move it to the right-hand (Selected) pane. You may need to click the Change File Location button on this dialog to view files in a different folder. Please note that you can transmit only one ACH file at a time to InterceptEFT.

3. Choose File / Transmission / Transmit ACH, or simply click the Transmit button at the lower-right corner of the dialog.

4. In the Transmission dialog (shown in the following illustration), enter the login, password, and PIN that have been provided to you by InterceptEFT, and then click the Continue button.

Note: The File ID Modifier defaults to the next available number or letter and is used within the ACH file name to enable InterceptEFT to track the ACH files that you send; please do not edit this field.



5. The InterceptEFT interface opens automatically. At this point you will need to

enter the additional login information provided to you by InterceptEFT.

6. To submit the file you selected in step 2, click the Submit File button.

7. If you do not wish to submit the file at this time due to error messages from

InterceptEFT, click the Reject File button. To view details of the selected file before submitting or rejecting the file, click View File Summary.



8. Once the file is submitted, you will receive confirmation that the file has been

submitted to InterceptEFT for processing. InterceptEFT will give you a reference number to use when corresponding with them about this file.

Note: Additional options are available, such as the ability to run reports and to request an online trace. For more information about these options, please contact InterceptEFT Customer Service at 866.431.9926..

9. When you have completed all relevant tasks in the InterceptEFT interface, click the Close button at the bottom of the screen to return to CSA.

After you have successfully completed the transmission, InterceptEFT will oversee all of the remaining processing steps through the ACH network.

Note: If you have questions about any issue related to ACH files that have already been transmitted to InterceptEFT (including issues related to customer service, technical support, billing, and so forth), please contact InterceptEFT Customer Service at 866.431.9926..

Receiving file confirmations from InterceptEFT After receiving and processing your ACH file(s), InterceptEFT will provide to you via email a File Confirmation Report, with specific information about your ACH files — including processing date, company, and dollar amount.

Please refer to the “InterceptEFT Reference Guide” for a detailed description of the reporting you can expect to receive, as well as other pertinent reference materials.



Connecting to InterceptEFT without transmitting files If you would like to connect to the InterceptEFT interface when you are not submitting files, follow these steps.


2. From the Maintain Electronic Transmission Files dialog, choose File / Maintain ACH Files.

3. From the Maintain ACH Files dialog, choose File / Transmission / Connect to InterceptEFT.

4. In the Intercept Login dialog, enter your login and password, and click the Continue button.

Using the Impound features If you are a licensed user of the Impound features, there are a series of setup steps required to begin using impound.

Setting up bank information 1. Choose Utilities / Direct Deposit.

2. In the Maintain Electronic Transactions dialog, choose Setup / Bank Information.

3. Enter the description, bank name, and routing number for each bank you wish to add.

Setting up the Impound checkbook 1. Choose Setup / System Configuration / Impound Checkbook.

2. In the Impound Checkbook dialog, fill in the appropriate fields in the General tab. This will be the central checkbook into which funds from all the various client accounts will be deposited.

3. If applicable, click the MICR tab and specify MICR numbers for the impound checkbook.

4. Click the Direct Deposit tab, and select the bank and account type from the drop-down lists. We also strongly recommend that you prenote the Impound checkbook.

5. Click the Bank Reconciliation tab and enter the reference number that should be used in GL Transaction export files during impound bank reconciliation.

6. Click Enter to save the checkbook. Note that multiple impound checkbooks can be entered.

7. Click Done to save your information and close the Impound Checkbook dialog.

Note: When the Setup / Checkbook dialog is open in Browse mode, you have the option to rename a checkbook. Highlight the checkbook name, right-click in the gray area of the dialog (or press the F3 key), and then choose Rename checkbook from the context menu that appears.



Enabling the Impound checkbook 1. Choose File / Client Properties.

2. In the Client Properties dialog, click the Calculating Payroll tab and then mark the Enable impound checkbook checkbox.

3. Click the Direct Deposit tab and, if applicable, enter the information for the withdrawal account, which is now the impound checkbook. The information you enter here applies to the account to be debited.

4. Click OK to save your information and close the Client Properties dialog.

Assigning the client impound checkbook 1. Choose Setup / Checkbook.

2. Highlight (or add) the checkbook you want to assign as the impound checkbook.

3. Mark the Impound checkbook checkbox and select the appropriate impound checkbook from the drop-down list.

Note: Marking this checkbox disables most of the fields in this dialog, because as the impound checkbook, the checkbook information can no longer be modified at the client level. The GL account # field becomes the Holding account # field.

4. Enter the appropriate GL number in the Holding account # field.

Note: The holding account will credit net pay with checks written from this checkbook and then debit the funding value when the EPS file is created.

5. Click the Check Layout Information tab and enter or modify check layout information as needed.

6. Click Enter to save your information and then Done to close the Checkbook dialog.

Adding direct deposit information to the withdrawal checkbook 1. Choose Setup / Checkbook.

2. Highlight the checkbook that will be used to fund the impound transactions and then click the Edit button.

3. Click the Direct Deposit tab and select the appropriate bank information.

4. Click Enter and then Done to save your changes and close the Checkbook dialog.



Specifying required information in the Impound Funding dialog 1. Choose Utilities / Impound Funding.

2. If there are multiple impound checkbooks, choose the appropriate one from the Impound Checkbook Selection dialog and click OK.

3. In the Impound Funding dialog, select the appropriate withdrawal checkbook from the drop-down list.

Note: The withdrawal checkbook is the checkbook to be debited for fund transactions while the impound checkbook is credited.

4. Choose Setup / Direct Deposit and enter the information in the following table. (Also see the following illustration.)

Field Enter the following information Immediate destination bank ID InterceptEFT

Immediate origin <Enter your own accounting firm’s 9-digit tax ID number.>

Immediate origin name <Enter your own accounting firm’s name, using up to 23 positions.>

Company name <Enter your own accounting firm’s name, using up to 16 positions.>

Company identification If you are funding payroll transactions, <enter your client’s 9-digit tax ID number>.

If you are funding tax or billing transactions, <enter your own accounting firm’s 9-digit tax ID number>.

Originating DFI bank ID <Select your client’s bank from the drop-down list.>

5. Click OK to return to the Impound Funding dialog.

6. Click the Done button to save your information and close the Impound Funding dialog.



Setting up processor information 1. Choose Utilities / Direct Deposit.

2. In the Maintain Electronic Transaction Files dialog, choose Setup / Processor Information.

3. In the Processor Information dialog, enter or modify as necessary the processor name and tax identifier.

4. Click OK to save your information and close the Processor Information dialog.

5. Click Done to close the Maintain Electronic Transaction Files dialog.

Note: This processor information is used in the credit (deposit) transaction for the funded amount for direct deposit.

Setting up vendors for impound InterceptEFT requires specification of the payment type for transactions being funded for each vendor. For vendors, the three payment types available are 1099 Payments, Tax Deposit payments, and Commercial – other. This field displays only when an Impound checkbook has been specified for the client and either the Standard – 4 day or Premium – 3 day processing window has been selected as the processing window in the Direct Deposit tab of the Client Properties dialog.

For each vendor for whom you will be using the Impound features and transmitting funding files via InterceptEFT, follow these steps.

1. Choose Setup / Vendors.

2. In the Vendors dialog, highlight the appropriate vendor and then click the Edit button.

3. Click the General tab, if it’s not already selected, and choose the appropriate payment type from the Payment type drop-down list. Your selection will be reflected in the Reason column of the Utilities / Impound Funding dialog grid and in the EPS file itself.

1099 Payments. This specifies to InterceptEFT that the fund to the Impound account will be paid to a vendor with a personal type bank account. The funding transaction will specify NET PAY as the Company entry description and CSI NET PAY as the Company discretionary data in the ACH file.

Note: This option is not connected to 1099 form printing from within Write-Up CS.

Tax Payments. This specifies to InterceptEFT that the fund to the Impound account will be paid to a taxing authority such as EFTPS. The funding transaction will include TAX IMPND as the Company entry description and CSI Impound as the Company discretionary data in the ACH file.

Commercial – other. This specifies to InterceptEFT that the fund to the Impound account will be paid to a vendor with a commercial type bank account. The funding transaction will include BILL IMPD as the Company entry description and CSI Billing as the Company discretionary data in the ACH file.

4. Click OK to save your changes and close the Vendors window.



Prefunding checks for impound 1. Choose Tasks / Payroll Check Entry or Tasks / Vendor Check Entry and

process your payroll and/or vendor checks as usual. Do not print the checks.

2. Choose Fund Unprinted Checks from the Edit menu or from the F3 or right-click context menu.

3. In the Fund Unprinted Checks dialog, select the checks you want to fund by moving them from the Checks available pane to the Checks selected pane.

4. Click the Fund button. A fund transaction is created in the Impound Funding dialog for the amount listed.

5. Click Close to close the Fund Unprinted Checks dialog.

6. Close the Check Entry window.

7. Choose Utilities / Impound Funding and, if you’re using multiple impound checkbooks, select the appropriate one from the Impound Checkbook Selection dialog.

8. In the Impound Funding dialog, select the transactions you want to include in the EPS file by marking their checkboxes.

Note: Payroll transactions are summed together in the Funding grid. Click the Details button to view individual transactions. Vendor transactions are listed individually in the Funding grid.

9. Click the Create EPS File button. When the information dialog displays the Funding file created successfully message, click OK.

Note: You also have the option to send funds to the Impound Bank Reconciliation without creating an EPS file. Mark the checkbox next to the transaction, and click the Fund w/o EPS button.

10. Click Done to close the Impound Funding dialog.


12. In the Maintain Electronic Transaction Files dialog, create your ACH files as usual.

13. Transmit the ACH file as usual.

14. Choose File / Print Checks and print the checks.

15. Run your payroll reports as usual.



Post funding checks for impound 1. Choose Tasks / Payroll Check Entry or Tasks / Vendor Check Entry and

process your payroll and/or vendor checks as usual.

2. Choose File / Print Checks.

3. In the Print Checks dialog, be sure to select the impound checkbook in the Checkbook column to activate the Fund checkboxes.

4. Mark the Fund checkbox(es) for your payroll and/or vendor checks.

5. Click the Print button and print your checks as usual.

6. Run your payroll reports as usual.

7. Choose Utilities / Impound Funding and, if you’re using multiple impound checkbooks, select the appropriate one from the Impound Checkbook Selection dialog.

8. In the Impound Funding dialog, select the transactions you want to include in the EPS file by marking their checkboxes.

Note: Payroll transactions are summed together in the Funding grid. Click the Details button to view individual transactions. Vendor transactions are listed individually in the Funding grid.

9. Click the Create EPS File button. When the information dialog displays the Funding file created successfully message, click OK.






Creating manual fund transactions for impound 1. Choose Utilities / Impound Funding and, if you’re using multiple impound

checkbooks, select the appropriate one from the Impound Checkbook Selection dialog.

2. In the Impound Funding dialog, choose File / Add Fund Transaction.

3. In the Add Fund Transaction dialog, enter the description, amount, and (if you’re creating journal entries) the GL account number.

4. Select the appropriate payment type in the Funding reason field. The transaction will display as Manual in the Method column of the Impound Funding dialog and the Reason column will display the payment type.



Note: If you are funding for multiple reasons, you must create a separate funding transaction for each type.

5. Click OK to create the manual fund transaction.

6. Create an EPS file from the manual transaction by marking the checkbox next to the transaction and clicking the Create EPS File button.






Child support direct deposit overview

Setting up the deduction item 1. Choose Setup / System Configuration / Deduction Items.

2. Highlight the Child Support deduction, press the F3 key, and then choose Copy Deduction Item.

3. Enter a new Description and Report description, for example “Child Support DD.”

4. Click the Calculations tab, and make sure the Child support checkbox is marked.

5. Mark the Direct deposit payment checkbox.

6. Click Enter to save the information and then click Cancel to return to Browse mode.

7. Close the Deduction Items dialog.

Setting up direct deposit information If the client is already using direct deposit, this information is already set up in the Client Properties dialog and the Checkbook dialog. If not, set up the direct deposit information as you would for any direct deposit client, as specified in this guide.



Setting up the disbursement unit as a vendor You will need to set up the child support state disbursement unit for this client as a vendor.

1. Choose Setup / Vendors and enter the information for the state disbursement unit as appropriate.

2. Click the Direct Deposit tab and complete the fields using the information specified by your state.

3. Set the vendor to Account status: Approved. Verification of the proper setup of the vendor will be handled later in the process.

4. When all information has been entered, click the Enter button and then close the Vendors window.

Creating a zero balance test file 1. Choose Utilities / Direct Deposit to open the Maintain Electronic Transaction

Files dialog.

2. Select the child support deduction file and choose Tasks / Child Support Zero Balance File and click OK at the prompt when the file has been written.

3. The status of the file is updated to Waiting. Once you receive notification from the bank/third party handling your direct deposit files that the test file is correct, choose Tasks / Update Account Status.

4. Select the Approved status option and then click OK. The status now displays as Approved in the Direct Deposit tab of the Employees window.

Important! Before a child support payment file can be created, the status for the direct deposit child support item must be approved within the Direct Deposit tab of the Deduction Item Properties dialog.

Processing payroll and child support payments You are now ready to enter and save payroll checks that include direct deposit child support amounts and create a child support payment file.

Important! The following must be true to create a child support payment file:

The status of the EPS file must be Approved.

All pertinent direct deposit information must be entered.

If you attempt to save a check with information missing, you will receive a warning message stating that the direct deposit file will not be created. The check itself can still be printed, however no child support payment file will be created.

1. Choose Tasks / Payroll Check Entry and process your payroll checks as usual.

2. Choose File / Print Checks and print your checks as usual.




4. In the Maintain Electronic Transaction Files dialog you will see an EPS file for child support. You may also see a payroll EPS file if any of your employees had amounts other than child support direct deposited.

5. Create your ACH files as usual.



Working Directly with Individual Banks

The key to successfully working directly with individual banks to establish direct deposit for your payroll clients, first and foremost, is knowing what to expect. That can make all the difference to a smooth and timely transition from issuing paper payroll checks to the convenience of automatically deposited funds.

Payroll CS, in conjunction with the Direct Deposit module, can create the ACH files to transfer funds for payroll checks, tax deposits, and other vendor payments. While the general setup and processing steps are covered in the CSA help topics, we cannot provide exact setup information to fit all instances because requirements can vary widely from bank to bank. You will need to work with representatives of each of the clients’ banks when setting up your software to meet the banks’ own specific requirements and to test the ACH files prior to your first electronic transmission of live data.

Note: This document cannot address all of the details regarding steps in Payroll CS and the Direct Deposit module for setup, processing, and ACH creation that may be required by individual banks. However, an extended example is presented in the section of this guide entitled “Direct Deposit with Individual Banks Setup Example,” which begins on page 41.

Establishing bank services As you and your client transition from paying employees via traditional (printed) payroll checks to paying them via direct deposit, the key element to a smooth and timely transition is working with the financial institution to make it happen. The following steps will guide you through that process:

1. After your client has informed you that they would like to offer direct deposit of payroll checks to their employees (or after you’ve advised the client to try direct deposit), you need to contact the client’s bank to establish the processing services. When calling the bank, it’s usually best to ask to speak directly with someone in Cash or Treasury Management or in the ACH Department, which may help to get you connected with the appropriate personnel more quickly. Branch personnel are not always knowledgeable about what needs to be done



to set up direct deposit services, so you may wish to contact the bank’s main offices first to minimize the need for repeated initial contacts.

2. When you have established contact with an ACH representative at the bank, explain that you are the payroll processor for a mutual client and that you would like to set up direct deposit (ACH processing) for the client. Tell the representative that you will submit payroll transactions to the bank via standard NACHA formatted files.

(At this point, if the person you are talking with does not fully understand what an ACH file is, or is unable to assist you, you may need to request a transfer to another bank representative. Finding the right contact at the bank is often the biggest challenge in establishing ACH processing with individual banks.)

3. The bank’s ACH representative will provide you with the bank’s requirements for the testing and submission of ACH files, as well as information about service fees and any authorization forms and agreements that are necessary. The representative will provide you with information on requirements for the live transmission of ACH data, including header and batch record specifics (as discussed below).

a. File testing assures the bank that the files you will be sending are accurate and readable by the bank’s own processing software. The testing process involves transmitting a sample ACH file (called a Prenote) to the bank to ensure that the file contains appropriate header and batch information and that it is in the proper format.

b. Across banks, the ACH file submission deadlines are also as individual as the banks themselves. Be sure to discuss exactly when files are due and when processing will take place. It is very important to understand the ramifications if files are late or have incorrect dates, and you need to know when Federal Reserve holidays are observed and how those dates can change the normal deadlines for file submission. This information will help you to determine your own processing schedules and deadlines.

c. Bank fees differ widely but can typically include fees such as the following: setup fees ($100 or more); monthly maintenance fees ($25-$50); file or batch fees ($15-$25); per-transaction fees (generally 12 to 50 cents per item); plus “exception” fees (for returns, file adjustments, and so forth) that can range anywhere from $2 to $10 per item.

Note: Roughly 40 percent of banks charge both a monthly fee and per-item transaction fees. Other banks might charge the same combination but also add transmission fees. Be sure to ask about and carefully consider all costs when setting up direct deposit services for your clients.

d. NACHA rules require that employees fill out direct-deposit authorizations providing account numbers, amounts, and voided check/deposit slip copies. These forms are typically kept on file (either by you or by the employer) and are not sent to the bank.

e. Normally, a two-party processing authorization is held between the financial institution and the client (the employer), and a three-party processing authorization is held between the financial institution, the client, and the payroll processor.

f. The initial setup process with the bank can take from a week to a month, or even longer.



4. Using the information the bank provides, you can then complete the required setup information in Payroll CS and the Direct Deposit module. The following illustration (of the Direct Deposit tab of the File / Client Properties dialog) shows where the bank information should be entered. This information is used in the header section and company information sections of the ACH file. Note that the bank may use different names for some of these fields, but the Direct Deposit module uses the same descriptive text used in the NACHA Operating Rules.

Reminder: Due to substantial differences in the requirements of individual banks, complete instructions for setup, processing, and ACH creation cannot be covered here. However, However, an extended example is presented in the section of this guide entitled “Direct Deposit with Individual Banks Setup Example,” which begins on page 41.

5. After you have completed the setup steps for the client and employees, have executed the relevant agreements, and have established appropriate schedules, you can then begin transmitting live files to the bank for processing. There are several ways to transmit ACH files, but most banks accept ACH files that are transmitted in one of the following ways. You need to determine which method the bank would like you to use:

Via Modem or HyperTerminal. This transmission method, which is readily available from most office computers, enables you to connect directly to a remote computer and transfer files to the bank. Because of the power of the Internet, however, this method is now being used less often.

Via the Internet. This transmission method requires you to log in to a secure website and upload a file to that website. The receiving party will then download the file directly from the same website.



6. In addition to receiving the ACH file via electronic transmission, the financial institution will usually require information to which they can balance the file. While some banks offer a touchtone phone service where you key in codes and amounts according to prompts, other banks may require that the balancing information be sent to them via fax.


Direct Deposit with Individual Banks Setup Example

Working directly with individual banks Working with individual banks has long been the most common avenue for processing direct deposit for payroll clients. The client’s bank has traditionally been the initiator of direct-deposit transactions through the ACH network — primarily because banks (Depository Financial Institutions, or DFIs) owned the original rights to participate in the ACH system. But even though times have changed and companies like InterceptEFT make the offering of direct-deposit services more streamlined, many times clients feel more comfortable working with their own banks.

For users of the Payroll CS Direct Deposit module, choosing this option for your payroll clients involves establishing a separate relationship with each client’s bank to accept ACH files, or having one bank to agree to handle the ACH processing for all of your payroll clients and then following the specific requirements of each bank regarding file setup information and structure as well as the mode of transmission.

The following example covers setup and processing issues for a client with employees who have elected direct deposit for all or a portion of their payroll checks. It assumes you are using the optional Direct Deposit module along with Payroll CS.



Restoring the sample data For this example, we will need to restore the JONESDD client. To restore the client file, follow these steps.

1. Choose File / Restore from the CSA main window.

2. In the Restore Clients dialog, select Clients from the drop-down list in the first field in the upper left corner of the Restore Clients dialog.

3. Click the Change Backup Location button and then browse to your WINCSI\CSA folder in the Modify Location dialog.

4. Scroll down, click on the Training folder, and then click OK.

5. Highlight JONESDD in the Client ID list and click the Select button to move

JONESDD to the Selected pane.

6. Click the Restore button. The Restore Status dialog appears to show you the status of the restoration.

7. When the file has been restored, click the Done button.


Direct deposit scenario A manufacturing company, Jones Enterprises, has decided to provide its employees with the option to have their payroll checks deposited directly into their specified accounts.

Jones Enterprises uses the following banks for direct deposit:

Account type Bank name Routing number

Payroll Account First National Bank 072000915

Employee Banks Citizens Bank 272480128

Michigan National 072000805

Note: The bank will supply a routing number. The program verifies it is a valid number.

Adding banks for direct deposit 1. From the CSA main window, choose Utilities / Direct Deposit.

2. In the Maintain Electronic Transaction Files dialog, choose Setup / Bank Information.

3. In the Bank Information dialog, enter the name of the first bank (First National

Bank) in both the Description and the Bank name fields.



4. Enter 072000915 in the RTN field.

Note: The program checks to make sure the number entered in the RTN field is a valid routing number.

5. Click the Enter button to save the information.

Note: The Setup / File Headers command can be used to create specific file header strings that may be required by some banks. While the header is not an actual part of the ACH file, some banks need that string of information to identify the file and the client.

6. Now enter and save the required information for the two employee banks — Citizens Bank and Michigan National Bank, using the information provided on page 43 of this guide. You need to press the TAB key to move off the RTN field in order for the program to insert the hyphen in the appropriate location in the RTN number.

Note: By default, the ACH banks list is sorted by Description, but you can click on any column heading to modify the sort order.

7. When you finish entering the bank information, click the Done button to close the Bank Information dialog.

8. In the Maintain Electronic Transaction Files dialog, click the Done button to close that dialog.

Note: The View bank detail button opens the preview window and displays the Bank Detail Report. This report is especially helpful when you add new direct deposit clients because you can see the banks that have already been set up. Because bank setup is global, once you have a bank set up for one client, you may use it for another.


Setting up the client checkbook for direct deposit We now need to define general direct deposit information for the client's payroll checkbook.

1. From the CSA main window, choose Setup / Checkbook.

2. In the Checkbook dialog, click the Direct Deposit tab and then click the Edit button.

3. Select First National Bank from the Withdrawal bank drop-down list.

4. Select Checking from the Account type drop-down list.

5. Select Prenote/Zero Balance from the Status drop-down list.

There are three different status types.

Prenote/Zero Balance. This is the initial setup status used to create a zero-balance file.

Waiting. After the prenote file has been created, the program changes the status to Waiting until the bank confirms all accounts are valid.

Approved. These accounts have been verified and approved by the bank.

6. Click the Check Layout Information tab. We’re going to use a predefined direct deposit check layout in order to see the direct deposit distributions on the check stubs. The check stubs for employees with a net zero check amount will have VOID printed on them.

7. In the Payroll layout field, select the CSI Forms 327L 2 Column Middle Check Payroll MICR Dir Dep.ely layout from the drop-down list.



8. Click the Enter button to save the direct deposit information.

9. Click the Done button to close the Checkbook Setup dialog.

Setting up the client properties for direct deposit We need to enter additional setup information provided by the bank in the Direct Deposit tab of the Client Properties dialog.

1. From the CSA main window, choose File / Client Properties.

2. In the Client Properties dialog, click the Direct Deposit tab. Select First National Bank from the drop-down lists for the Immediate destination bank ID, the Immediate origin bank ID, and the Originating DFI bank ID fields. Notice the three banks we set up earlier appear in the drop-down lists for these fields.


3. The options in the Individual identification group box allow you to determine

how each employee is identified in the ACH file to be transmitted to the bank. For this example, we are going to use the default option, None.

4. The options in the Processing window group box allow you to specify the processing window that corresponds with your agreement with InterceptEFT. The processing window you select here determines the effective date used in your direct deposit files. Because we are not using InterceptEFT in this example, leave No transmission, the default option, selected.

Note: If Standard – 4 day or Premium – 3 day are selected rather than No Transmission, extra characters are inserted into the ACH file, potentially causing it to be rejected by your bank.

5. The options in the Exclude withdrawal transactions for group box allow you to specify the type(s) of transactions included in the ACH file that you do not want to be used in withdrawals for the selected account. For this example, leave all of the checkboxes unmarked.

6. Click the OK button to save the information and close the Properties dialog.



Modifying the Header record in the ACH file The bank specified in the Immediate destination bank ID, the Immediate origin bank ID, and the Originating DFI bank ID fields are used in the File Header record and the Company/Batch records of the ACH file that you prepare. If the destination bank instructs you to include your firm name in the Header record, you must do the following.

1. In the Direct Deposit tab of the File / Client Properties dialog, delete the current entry in the Immediate origin bank ID field.

2. Enter the routing number in the Immediate origin field.

3. Enter your firm name in the Immediate origin name field.

4. The remaining fields are optional and may be used if the bank requires the additional information to be included in the ACH file. Be sure to verify all required setup information with the bank.

Tip: You may wish to print a copy of this dialog and take it to the bank (you can use the Printkey.exe program provided in the CSA folder to print this dialog). The bank can give you the information needed to complete the fields in this dialog. To use Printkey.exe to capture the dialog, choose Run from your Windows Start menu. Enter C:\wincsi\csa\printkey.exe in the Run dialog and click OK. When Printkey.exe opens, press ALT+PRINT SCREEN from the Direct Deposit tab to capture the screenshot and then click the Print button. A copy of the dialog will print to your default printer.

5. Click OK to save the bank information and close the Properties dialog.

Setting up the direct deposit deduction items Payroll CS includes a default (global) Direct Deposit deduction item for deducting a net income percentage. However, Jones Enterprises has one employee (Don Allbright) who wishes to have a fixed amount deducted for direct deposit. All the other employees want either a percentage deducted or both a percentage and a fixed amount.

To set up the fixed-amount-only deduction for Don Allbright, you must create a new deduction item. Because the properties for the new item are similar to the default, you can start by copying the default deduction item.


1. From the CSA main window, choose Setup / System Configuration / Deduction Items. In the Deduction items dialog, highlight the default Direct Deposit item. Press F3 and choose Copy Deduction item from the context menu.

2. In the Description and W-2 Info tab, enter Direct Deposit-Fixed in both the

Description and the Report description fields.

3. Click the Calculations tab. Select Fixed Amount from the Calculation type drop-down list. This is the only change you need to make to the deduction item.

4. Click the Enter button to save the deduction item.

5. Click the Done button to close the Deduction items dialog.



Setting up employee direct deposit information Employees who wish to have all or a portion of each paycheck directly deposited to their accounts can choose to deposit these amounts to multiple accounts. Although we are giving you examples of several direct deposit combinations, you may not actually use all of them. Currently, the four employees of Jones Enterprises have chosen to participate in the direct deposit program.

Employee Direct Deposit Amount

Employee's Bank Account #

92, Rhonda Gross 25% of net pay to savings

Citizens Bank 857654324

Balance to checking Citizens Bank 87543

102, John Dooley 100% of net pay to checking

Citizens Bank 5239465

27, Jack Perkins $25.00 to savings Michigan National 954632

Balance to other savings


76, Don Allbright $100.00 of net pay to savings

First National 45876523

Each employee requesting direct deposit must be set up with one direct deposit deduction item per department. Let's start by modifying the employee record for Rhonda Gross.

1. Choose Setup / Employees.

2. Highlight Rhonda Gross in the listview pane of the Employees window and then click the Edit button.

3. Click the Tax Withholdings and Deductions tab. Click in the Description column of the last (blank) row of the grid and select Direct Deposit from the drop-down list.

Note: For Don Allbright only, you need to select the Direct Deposit-Fixed item.


Notes

When you include a Direct Deposit deduction item, that item must always be the last deduction item in the Tax Withholdings and Deductions grid. If necessary, you can move an item to a new position by clicking in the numbered column at the left of the grid to highlight an item and then dragging it to its new position.

If you are using journal entries, you would need to enter a GL number for the Direct Deposit deduction item in the G/L Acct column. This is generally the same net pay GL number used for the checkbook from which the deduction is being taken.

4. Click the Item Properties button associated with the Direct Deposit deduction item.



5. In the Deduction Item Properties dialog, enter 100.0000 in the Percent field of the Deduction Info tab. This is the total percentage to be deducted from the employee’s paycheck. If an employee has specified that both a percentage and a fixed amount be deducted for direct deposit, you still need to enter the total percentage in the Percent field. We will specify the additional fixed amount in a later step.

6. Click OK to return to the Employees window.

7. In the Employees window, click the Direct Deposit tab.

8. Enter the remaining direct deposit deduction information for Rhonda, as listed on page 50 of this guide. The program calculates the direct deposit deductions in the order in which they appear in the grid. So, for Rhonda, enter the smaller percentage and then the total percentage to be deducted from net pay.

Note: To eliminate possible rounding issues, the program puts the remainder of the direct deposit amount (regardless of the amount or percentage that you enter) in the last row.

9. Enter or select the following values for Rhonda in the direct deposit grid.

Row Bank ID Account Number

Account Type

Amount Percent Status

1 Citizens Bank

857654324 Savings (blank) 25.00 Prenote/Zero Balance

2 Citizens Bank

87543 Checking (blank) 100.00 Prenote/Zero Balance

Note: The program does not allow you to enter both an amount and a percentage on the same line in the grid.


10. Click the Enter button to save the new direct deposit information for Rhonda

Gross.

Note: The Activate alternate accounts option enables you to use a different direct deposit configuration setup for the employee. The Type field allows you to choose either the primary or alternate configuration to enter or edit the direct deposit information. For example, if an employee has a fixed direct deposit of $100.00 to pay a bill from his normal payroll check, he may not want to make an extra payment if he receives a bonus check. The alternate account type allows the employee to direct deposit the bonus check into his regular checking account.

Exercise for setting up employee direct deposit information Set up each of the other employees — John Dooley, Jack Perkins, and Don Allbright — using the information on page 50 of this guide.

Tips

For Jack Perkins, the Direct Deposit Item Properties percentage is 100% ($25 to savings and the rest of his net pay to another savings account).

Use the Direct Deposit (percentage) deduction item for all employees except Don Allbright; who requires the Direct Deposit-Fixed deduction item.

If you are using a fixed amount and a percentage, the program will take the fixed amount out first. The percentage amount will be based on the entire net pay amount.

After you have finished entering the direct deposit information for these employees, close the Employees window.



Creating a Prenote test file for direct deposit Payroll CS creates an ACH file complete and ready for transmission to a bank or processing agent such as InterceptEFT. The bank or processing agent will inform you of acceptable methods for transmitting the file (such as via modem / HyperTerminal, the Internet, or additional software).

Important! When setting up any new direct deposit information, the status on all accounts should start as a Prenote/Zero Balance. This allows you to send a test file to the bank before sending actual payroll data. The bank will verify the information was transmitted correctly and the format is correct. After you send a prenote file, the status of all accounts associated with the file is automatically changed to Waiting. If corrections are needed, you can make those changes, and then create and send another prenote file. To create another prenote file, you must change the status of all accounts from Waiting back to Prenote. This will prevent actual payroll information from being rejected by the bank. Once the bank has verified that the information for the employees and the client is correct, you can change the status of all accounts to Approved and send the actual payroll information.

Let’s create a Prenote file for transmission to the bank.


2. In the Maintain Electronic Transaction Files dialog, choose Tasks / Prenote Accounts.

3. The program displays a message prompt telling you the prenote file was successfully written. Click the OK button to dismiss the message prompt.


4. Choose File / Refresh (or press F5) to update the list of files available for selection. Notice the prenote file you just created now appears in the left pane. Once you have been working with direct deposit for a while, you will use the Focus File Types group box selections to minimize the number of files displayed in the Files to select pane.

5. Double-click the file to move it to the right (Files selected) pane. Click the

Create ACH File button.

6. In the Create ACH File dialog, enter Prenote in the File name field. Notice the Effective entry date (the date when the funds are actually deposited in the accounts) defaults to the system date.

7. You can use this dialog to specify a different location for the ACH file and to

enter supplemental information. For this example, click the Change File Location button and browse to your desktop to make this your Prenote file location. When setting up direct deposit for your real clients, you’ll want to store these files in a more secure location.

Note: We recommend that you set up a file folder on your hard drive or network to store ACH files until you receive confirmation from your bank or from InterceptEFT that the file was successfully routed.



8. Click OK to create the ACH file. The program displays a message prompt telling you the ACH file was successfully created. Click OK to continue.

Creating the ACH Detail Report The ACH Detail Report allows you to see information to be transmitted in the ACH file to your bank or InterceptEFT. This is useful information for troubleshooting any issues that may arise. Later we’ll look at the actual text file created by CSA.

1. In the Maintain Electronic Transaction Files dialog, choose File / Refresh.

2. Choose File / Maintain ACH Files.

3. In the Maintain ACH Files dialog, the program displays the files in the C:\ folder. We want to change the file location. Click the Change File Location button.

4. In the Modify Location dialog, navigate to your desktop, where the prenote file is now located. Normally this would be a secure location you selected in the previous dialog.

5. Click OK to change the location, close the Modify Location dialog, and return to the Maintain ACH Files dialog.

6. Double-click the Prenote file in the Files available to select pane to move it to the Files selected pane.

7. Choose File / View / Detail. The first page of the ACH Detail Report appears. Verify that the information is correct.


8. To print this report, click the Print Page button or the Print All button. To view the second page of the report, click the Next Page button.

9. Click the Close button to close this report and to return to the Maintain ACH Files dialog.

Important! Do not click the Close window button in the upper right-hand corner of the window, as this will close the CSA program.

10. Click the Done button to close the Maintain ACH Files dialog and return to the Maintain Electronic Transaction Files dialog.

11. Click the Done button to close the Maintain Electronic Transaction Files dialog.

12. To verify the program changed the status to Waiting, choose Setup / Employees and click the Direct Deposit tab. Notice the program has changed the status from Prenote/Zero Balance to Waiting.

13. Close the Employees window.



Updating the account status The file is now ready for transmission to the bank or processing agent. If you need to make any changes to meet their requirements, you can make the changes and then create another prenote file to send for approval. If this is the case, you may wish to delete the incorrect original prenote file to avoid confusion. The date and time the file was created will help you identify the appropriate file to delete.

After the file has been transmitted and the information has been verified by the bank or processing agent, you need to change the status for all accounts to Approved. For this example, assume all the information has been verified and is approved.


2. In the Maintain Electronic Transaction Files dialog, choose Tasks / Update Account Status. The program displays a verification prompt asking if you want to change all Waiting status accounts to Approved status or to Prenote status. Choose the Approved status option and click OK.

3. Click the Done button to close the Maintain Electronic Transaction Files dialog. You are now ready to create “live” ACH files when you process your next payroll for the client.

Note: If you open the Setup / Employees / Direct Deposit tab, you will see that the program has changed the Status to Approved for each employee.

Entering payroll data for direct deposit Let’s create payroll checks for all Jones Enterprises employees. We will create payroll checks for the salaried employees (Rhonda Gross and John Dooley) and enter 40 regular hours for the hourly employees (Don Allbright and Jack Perkins).

1. Choose Tasks / Payroll Check Entry.

2. Enter payroll checks for the two salaried employees: Rhonda Gross and John Dooley.

3. Enter the payroll information for the two hourly employees: Jack Perkins and Don Allbright (40 regular hours each).


4. Press the PAGE UP key on the keyboard to display each check record and note the direct deposit deduction for each employee. Notice when the direct deposit amount is 100% of net pay as is the case for Jack Perkins, the net pay amount is $0.00.

Using alternate accounts for direct deposit We will not be using alternate accounts in this example, however, to use alternate accounts for a direct deposit check run, you would do the following:

1. In the CSA main window, choose Setup / Employees.

2. Select the appropriate employee and then click the Edit button.

3. Click the Direct Deposit tab.

4. Mark the Activate alternate accounts checkbox and select Alternate from the drop-down list in the Type field.

5. In the Direct Deposit information grid, enter the employee’s information for the special check run.

Note: If this information is not set up or does not have approved status when paychecks are processed, a live check will be produced.

6. Click the Enter button to save the employee, and then close the Employees dialog.

7. Choose Setup / Calculation Profiles.

8. Click the Add button to create a new calculation profile, entering the appropriate information on the General tab.

9. Click the Deduction and Withholding Overrides tab.



10. Mark the Use alternate direct deposit account checkbox.

Note: This checkbox is available only if the Activate alternate accounts checkbox in the Employees dialog has been marked for at least one employee. The program automatically uses the primary direct deposit information for employees who do not have the Activate alternate accounts checkbox marked.

11. Click Enter to save your choices, and then click Done to exit the Calculation Profiles dialog.

12. Choose Tasks / Payroll Check Entry.

13. With the Payroll Check Entry window active, choose Edit / Options and then select the correct calculation profile for this check run from the drop-down list, and then click OK.

Displaying the list of checks After you have entered all of the checks, you can view a list of the checks.

1. In the Payroll Check Entry window, choose Edit / Check List. The Check List dialog opens, showing all the checks recorded for the current period. This dialog enables you to search for an existing check record in the current checkbook and current period, and then quickly navigate to that record in the Payroll Check Entry window.

2. By default, the checks are sorted first by check number and then by unprinted checks in the order they were entered. You can re-sort the checks by clicking any of the column headings. The program will sort the list by that field. Click the Employee ID column heading to re-sort the checks by that field. (To revert to the original sort order, close the dialog and reopen it.)


3. Check records cannot be edited in the Check List dialog. To edit or view a

check, double-click the check, and the program opens the Payroll Check Entry window with the selected item as the current check record.

4. Click OK to close the Check List dialog.

5. Close the Payroll Check Entry window.

Printing the Unprinted Checks report 1. Choose File / Print Reports.

2. In the Print dialog, click the Reports tab. Double-click the Unprinted Checks report to move it to the Selected pane and then click the Options button.



3. In the Unprinted Checks Options dialog, mark the Direct deposit checkbox.

Then click OK to return to the Print dialog.

4. In the Print dialog, click the Preview button to view the Unprinted Checks report

on your monitor. This report shows the routing and account number in addition to the amount of the deduction.


5. Verify all the payroll information has been entered correctly.

6. Click the Next Page button to move to the last page of this report.

7. The numbers in the report should match the following check figures. If they do not match, determine which employee check is incorrect and then correct it.

Direct Deposit $1,606.00

Direct Deposit-Fixed $100.00

8. Click the Print All button on the toolbar to print the report.

9. Click the Close button to close the Print preview window.



Printing the direct deposit payroll checks Payroll CS creates an Electronic Payment System (EPS) file that contains direct deposit information for individual clients. These EPS files are used to create the ACH file. The program will not create the EPS file until the earnings are updated (by printing the checks). After you have confirmed that your report figures are correct, you are ready to print the payroll checks.

Note: For additional information on EPS files, search on Create ACH File [Direct Deposit module - File menu] from the index of the CSA help browser.

1. Choose File / Print Checks.

2. In the Print Checks dialog, mark the Payroll Checks checkbox.

3. Click the Print button.

4. In the Enter Payroll Check Information dialog, enter 1017 in the Starting check

number field.

5. Enter 11/20/03 in the Check date field.

Important! The check date entered must fall within the current processing period as displayed in the status bar of the main CSA window.

6. Enter 11/14/03 in the Period ending date field.

7. Enter 11/08/03 in the Period beginning date field.


8. Click OK to continue with the check printing.

9. After the checks have been queued to the printer, the Check Printing Confirmation dialog opens. Examine the check amounts for any errors.

10. If all the checks printed correctly, click the Done button. The program

automatically updates the earnings on the employee records.

Printing the payroll reports 1. Choose File / Print Reports.

2. In the Print dialog, double-click the Payroll Journal report, and then click the Options button.

3. In the Payroll Journal Options dialog, select Latest check date from the Data range drop-down list.



4. Mark the Direct deposit checkbox. Note that the Direct Deposit checkbox is available only when Latest check date is selected in the data range field.

5. Click OK to return to the Print dialog.

6. In the Print dialog, click the Preview button to display the Payroll Journal report.

7. Verify the Payroll Journal amounts for Direct Deposit and for Direct Deposit-Fixed (on the last page of the report) match those on the Unprinted Checks report you printed earlier.

8. Click the Close button to close the print preview window.


Creating the ACH file When the program prints the payroll checks, it automatically creates a temporary electronic file that is used to create the ACH file for transmission to the bank.


2. The JONESDD file appears in the Files selected pane. Notice this is a payroll file, as indicated in the Type column. (If this file does not appear, double-click it in the left pane to move it to the Files selected pane.)

3. Click the Create ACH File button.

4. In the Create ACH File dialog, enter Jones112003 in the File name field.



5. The file location defaults to the folder where your client data is stored (if not for the temporary location you are using, this would normally be c:\wincsi\csadata), but if necessary, you can specify a different file location. You can also enter supplementary information if desired.

6. Click OK to create the file. The program displays a message informing you that

the effective entry date is more than five days beyond the system date, and gives you the option to change the date. For this example, click the NO button to continue. Another message appears telling you that the ACH file was successfully created. Click OK to dismiss the message.

7. Choose File / Refresh.

8. Choose File / Maintain ACH Files.

9. Double-click JONES112003 to move it to the Files selected pane.

10. With JONES112003 in the Files selected pane, choose File / View / Detail.


11. Verify that the information for each employee is correct.



12. Click the Next Page button to go to the second page of this report. Scroll to the bottom of the second page. Both the total credits and total debits should be $1,706.00.

Important! You should always verify the accuracy of the total credits or total debits on the last page of the ACH Detail Report. They must agree with the figures on the totals page of the Payroll Journal.

13. Click the Close button to close the report preview window and return to the Maintain ACH Files dialog.

14. Click the Done button to close the Maintain ACH Files dialog and return to the Maintain Electronic Transaction Files dialog. The ACH file is now ready for transmission to the bank.

15. Click the Done button to close the Maintain Electronic Transaction Files dialog.


Reversing transactions Although you won’t be reversing any transactions for this example, if necessary you can use the following procedure to reverse direct deposit transactions that have already been transmitted and processed by the Federal Reserve.


2. From the Maintain Electronic Transaction Files dialog, choose File / Maintain ACH Files.

3. Double-click the file to be reversed to move it to the right-hand pane and then choose File / Reverse Transactions.

Notes

The Reverse Transactions command is available only when you have a single ACH file selected in the right-hand (selected) pane.

By default, the effective date matches the original ACH file whose transactions you are reversing. You can override this date if your bank prefers a different date.

4. The Reverse Transactions dialog lists the file name and has edit boxes for the reverse file name, file location, and effective date. Each row of the grid in this dialog displays an entry for each credit record in the file; only the checkbox for each row is editable. Mark the checkbox for the entry that needs to be reversed (or click the Mark All button to mark all checkboxes). Display fields at the bottom of the dialog list the total number of transactions selected and the transaction totals.

Note: Reversed, prenote, and tax type transactions will not display in the Reverse Transactions grid.

5. Click the Reverse button to create a new ACH file containing the reversed transaction(s). This file is then available for subsequent transmission.

Important! If you reverse a transaction, printed checks and / or employee earnings still need to be adjusted.



Viewing the ACH file 1. In Windows Explorer, navigate to your desktop.

2. Double-click the Jones112003 file.

3. In the Open With dialog, highlight either Notepad or WordPad.

4. Click OK to open the file.


5. View the ACH file. Although your own bank or processing agent may require slightly different information in the first two lines of the file, this will give you an idea of the ACH file structure.

6. Choose File / Exit to close the ACH file and to exit the text editor program.

Removing a transaction In some cases it may be necessary to remove a transaction from a selected EPS file. If this happens, you would follow these steps.


2. In the Maintain Electronic Transaction files dialog, move the JonesDD Payroll file to the Selected pane, and then choose Tasks / Remove Transaction.

Note: The Tasks / Remove Transaction command is available only when you have a single file in the Selected pane.

3. In the Remove Transaction dialog, enter the check number of the record you would like to remove from the EPS file.

4. Once the check has been removed successfully, the program displays a prompt

reminding you to void the check in payroll check entry, as that is not done automatically.



Working with vendor direct deposit Payroll CS supports electronic collection of client billing amounts and electronic vendor payments to taxing authorities through the Payroll CS Direct Deposit module. In order to learn how to take advantage of this ability, let’s set up our own firm, First Accountants, Inc., as a vendor and set up automatic electronic client billing.

1. From the CSA main window, choose Setup / Vendors.

2. Click the Add button.

3. In the General tab, enter the firm name, First Accountants, Inc. and enter FIRSTACCT as the vendor ID. Be sure that 1099 recipient is selected in the Payee type group box.

4. In the Distributions tab, mark the Use invoice amount checkbox. When this vendor is selected for check entry and this checkbox is marked, the program will automatically use the amount you specify in the Setup / Invoice dialog. The program will then automatically create a check from the client to cover the amount you have invoiced.

5. In the Direct Deposit tab, first mark the Process electronic payment and the

Commercial account checkboxes, and then enter the following information in the dialog.

Deposit bank Michigan National

Deposit account number 98745674

Account type Checking

Account status Approved


Notes

We recommend that you prenote vendor accounts. In prenoting vendor accounts, you must clear the Process electronic payment checkbox. However, because we have already walked through the prenoting process, we are setting the account status to Approved in this example to show you how the program generates the stub for the invoice check.

By entering the necessary information in the appropriate fields (such as the Federal tax type and Period ending date fields), you can make payments to taxing authorities electronically using vendor checks.

6. Click the Enter button to save the vendor setup and then close the Vendors window.

7. Choose Setup / Invoice. Here we can see that an invoice was entered manually last month. Close the Invoice dialog.



8. Now let’s enter our check. Choose Tasks / Vendor Check Entry. Click the Add

button, select First Accountants, Inc. in the Vendor field, and then press the TAB key. An unprinted check is automatically generated for $58.00. Click Enter to save the unprinted check.

9. Print the vendor check. The remaining direct deposit steps are identical to those

we used to process an employee direct deposit run. The vendor check is printed showing the message “VOID – Processed for Electronic Payment – VOID.”

Note: For more information on making direct deposit vendor tax payments, search on Direct Deposit module from the index of the CSA help browser and then click the entry for Setting up a vendor for direct deposit tax payments.


Making electronic depository tax payments If you would like to set up the bank for electronically depositing 941 payments or state payments, it is a very similar process to those we have already discussed. In this case, you need to contact your bank or appropriate governmental agency for the routing number, account number, and other required information. You have the option to make payments electronically using a vendor check, as mentioned previously, or by following the procedure below.

To make depository tax payments electronically without using a vendor check, follow these steps:


2. Choose Tasks / Discretionary Tax Payments.

3. In the Discretionary Tax Payment dialog, specify the payment information and

tax type, deposit bank, and withdrawal bank information, and then click the Write tax payment button. This creates an EPS file for the tax payment. The remaining steps are identical to those we used to process an employee direct deposit run, beginning on page 67.

Notes

We recommend that you prenote tax deposit and withdrawal bank accounts just as you would prenote payroll, vendor, and checkbook accounts.

For more information on making discretionary tax payments, search on Direct Deposit module from the index of the CSA help browser and then click the entry for Setting up a vendor for discretionary tax payments.



Child support direct deposit overview

Setting up the deduction item 1. Choose Setup / System Configuration / Deduction Items.

2. Highlight the Child Support deduction, press the F3 key, and then choose Copy Deduction Item.

3. Enter a new Description and Report description, for example “Child Support DD.”

4. Click the Calculations tab, and make sure the Child support checkbox is marked.

5. Mark the Direct deposit payment checkbox.

6. Click Enter to save the information and then click Cancel to return to Browse mode.

7. Close the Deduction Items dialog.

Setting up direct deposit information If the client is already using direct deposit, this information is already set up in the Client Properties dialog and the Checkbook dialog. If not, set up the direct deposit information as you would for any direct deposit client, as specified in this guide.

Setting up the disbursement unit as a vendor You will need to set up the child support state disbursement unit for this client as a vendor.

1. Choose Setup / Vendors and enter the information for the state disbursement unit as appropriate.

2. Click the Direct Deposit tab and complete the fields using the information specified by your state.

3. Set the vendor to Account status: Approved. Verification of the proper setup of the vendor will be handled later in the process.

4. When all information has been entered, click the Enter button and then close the Vendors window.

Creating a zero balance test file 1. Choose Utilities / Direct Deposit to open the Maintain Electronic Transaction

Files dialog.

2. Select the child support deduction file and choose Tasks / Child Support Zero Balance File and click OK at the prompt when the file has been written.


3. The status of the file is updated to Waiting. Once you receive notification from the bank/third party handling your direct deposit files that the test file is correct, choose Tasks / Update Account Status.

4. Select the Approved status option and then click OK. The status now displays as Approved in the Direct Deposit tab of the Employees window.

Important! Before a child support payment file can be created, the status for the direct deposit child support item must be approved within the Direct Deposit tab of the Deduction Item Properties dialog.

Processing payroll and child support payments You are now ready to enter and save payroll checks that include direct deposit child support amounts and create a child support payment file.

Important! The following must be true to create a child support payment file:

The status of the EPS file must be Approved.

All pertinent direct deposit information must be entered.

If you attempt to save a check with information missing, you will receive a warning message stating that the direct deposit file will not be created. The check itself can still be printed, however no child support payment file will be created.

1. Choose Tasks / Payroll Check Entry and process your payroll checks as usual.

2. Choose File / Print Checks and print your checks as usual.


4. In the Maintain Electronic Transaction Files dialog you will see an EPS file for child support. You may also see a payroll EPS file if any of your employees had amounts other than child support direct deposited.

5. Create your ACH files as usual.


Removing the setup example direct deposit banks Important! Now that you have completed the walkthrough, you need to remove the three banks we added in the procedure beginning on page 43. This will avoid confusion later when you add actual banks for your own direct deposit setup.


2. In the Maintain Electronic Transaction Files dialog, choose Setup / Bank Information.



3. Select and delete the 3 banks listed in the following table.

Account type Bank name Routing number

Payroll Account First National Bank 072000915

Employee Banks Citizens Bank 272480128


This concludes our walkthrough of the setup and processing issues for a client with employees electing direct deposit for all or a portion of their payroll check.

payroll cs guide to handling direct...

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