Direct Deposit setup

[Lolbkpr]

Hi,
We have only 6 employees but they have been persistent in asking about Direct Deposit rather than checks.
How do we get started with this? I found that I can enter the ACH transaction with my bank (with such a small number of employees, it's not worth an API/upload). What do I need to do with PowerChurch to record it? Just select Direct Deposit rather than a check in the Payroll transaction?
Also, I know that with other jobs I have had to provide a voided check, statement, etc. - I assume this is for us to verify that we are sending it to the correct person? How is this done for such a small group of employees?

[NeilZ]

Hi,
We have only 6 employees but they have been persistent in asking about Direct Deposit rather than checks.
How do we get started with this? I found that I can enter the ACH transaction with my bank (with such a small number of employees, it's not worth an API/upload). What do I need to do with PowerChurch to record it? Just select Direct Deposit rather than a check in the Payroll transaction?
Also, I know that with other jobs I have had to provide a voided check, statement, etc. - I assume this is for us to verify that we are sending it to the correct person? How is this done for such a small group of employees?

On the Verify Payroll window, you would create a Manual Check and enter a check number. The check number DOES NOT need to be a real check, or anything of that sort, for example you can enter ACH, or what I use EFT. Then when finished, the system will offer you the option to print, email, or both. I would email the stub, and print a copy for our records and to use the final Check Amount to go online and send the funds via your bank's transfer system. I guess you would use Zelle, or similar.

[sgbani]

Hi,
We have only 6 employees but they have been persistent in asking about Direct Deposit rather than checks.
How do we get started with this? I found that I can enter the ACH transaction with my bank (with such a small number of employees, it's not worth an API/upload). What do I need to do with PowerChurch to record it? Just select Direct Deposit rather than a check in the Payroll transaction?
Also, I know that with other jobs I have had to provide a voided check, statement, etc. - I assume this is for us to verify that we are sending it to the correct person? How is this done for such a small group of employees?

Our church is in a similar setup, few employees, all direct deposit.

Yes, in each employee detail, I set the pay method to direct deposit, and enter their bank information (I also put in notes for each employee when they agreed to have direct deposit of pay).

When processing payroll, within the Verify Payroll window, every employee has it listed as direct deposit, not manual check. In the Verify Payroll window, it also has a button to click on payroll detail, or just detail. It generates a report for all employees and pay items, along with the 'check amount'. I save this file as a PDF and it is my reference for entering in our bank's ACH / direct deposit interface for sending money.

After clicking finish, it then gives me chance to email the paystubs (which I do in fact do), and also generate the direct deposit file (which we do not use either). You could ignore that file generation part and/or email paystubs later (or print them).


Now, for the bank part. Your ACH agreement with your bank may have specific requirements for what information you need from the employee for direct deposit. Our bank did not require a voided check or statement, but instead we could create a form that had specific information as required. This needed to be signed by every employee, securely stored and available for presentation to our bank upon request.

Our bank's ACH interface allows for a prenote operation batch, which means sending a 'ping' or zero value ACH to the intended person's account to see if any errors occur. As a matter of procedure, this is done for every new employee. This zero value or prenote process costs just the same as a regular ACH, at least for us, but it is a good check on the account number / name combo with the bank. You should talk with your bank's ACH / treasury management team to ensure you are following the guidelines they recommend and also best practices when it comes to onboarding a new employee for direct deposit purposes.

[NeilZ]

Hi,
We have only 6 employees but they have been persistent in asking about Direct Deposit rather than checks.
How do we get started with this? I found that I can enter the ACH transaction with my bank (with such a small number of employees, it's not worth an API/upload). What do I need to do with PowerChurch to record it? Just select Direct Deposit rather than a check in the Payroll transaction?
Also, I know that with other jobs I have had to provide a voided check, statement, etc. - I assume this is for us to verify that we are sending it to the correct person? How is this done for such a small group of employees?

Our church is in a similar setup, few employees, all direct deposit.

.

I guess you missed the part where the OP said she didn't want to do an ACH, as its wasn't worth the money. So my suggestion will work for what she wants to do.

[sgbani]

.

I guess you missed the part where the OP said she didn't want to do an ACH, as its wasn't worth the money. So my suggestion will work for what she wants to do.
[/quote]

That is not what I read, I saw that the OP has ability to do ACH, just not worth the API/upload of the direct deposit file? Perhaps I misinterpreted it, but it appears the OP is manually entering the ACH transactions at the bank portal.
I suppose both manual check and direct deposit method works in payroll. From my perspective, both are effectively ACH, as the church is pushing the ACH out, whether you use the direct deposit file, or manually enter each ACH in the bank's portal.

[Lolbkpr]

I am OP and I just don't want to do a file upload or API (third party), just want to pay about 5 checks monthly thru Direct Deposit.

I saw that I can go onto my bank website and enter the employee's account info and amount and date and they charge me $1 for the ACH and that's it.
It seems like I can just do this manually every month. I haven't asked about any forms, etc. - not sure if I have to?
I am collecting a voided check from all who want direct deposit just for my confirmation of account/routing etc.
Maybe I'm missing something more official that I have to do with the bank...

[NeilZ]

I am OP and I just don't want to do a file upload or API (third party), just want to pay about 5 checks monthly thru Direct Deposit.

I saw that I can go onto my bank website and enter the employee's account info and amount and date and they charge me $1 for the ACH and that's it.
It seems like I can just do this manually every month. I haven't asked about any forms, etc. - not sure if I have to?
I am collecting a voided check from all who want direct deposit just for my confirmation of account/routing etc.
Maybe I'm missing something more official that I have to do with the bank...

No .. you're fine if you're doing all that your bank requires. In Powerchurch, all you need is the process I described above.

[NeilZ]

.

I guess you missed the part where the OP said she didn't want to do an ACH, as its wasn't worth the money. So my suggestion will work for what she wants to do.

That is not what I read, I saw that the OP has ability to do ACH, just not worth the API/upload of the direct deposit file? Perhaps I misinterpreted it, but it appears the OP is manually entering the ACH transactions at the bank portal.
I suppose both manual check and direct deposit method works in payroll. From my perspective, both are effectively ACH, as the church is pushing the ACH out, whether you use the direct deposit file, or manually enter each ACH in the bank's portal.
[/quote]

The OP is manually entering the data at the bank, selecting direct deposit creates a file the OP does not need, thus using Manual Check will work for them.