HOW TO... Use EFT (Direct Deposit) in OA with US Payroll

Transcription

1 PR-HT005 HOW TO... Use EFT (Direct Deposit) in OA with US Payroll Date: 30 March 2011 Document Version: 0.1 Earliest available version of COINS: COINS OA These notes are published as guidelines only. This How to Guide may contain recommendations about configuration changes. Your configuration will almost certainly vary from the examples given in this document. Any configuration changes should always be applied to a separate non-live environment first and tested to prove that the features work as you require. Should you have any difficulties with this please contact the COINS USA Support Center or your account representative to arrange for some COINS consultancy. Please note that you should not expect the Support team to conduct configuration changes for you Construction Industry Solutions

2 CONTENTS 1 Purpose of this Document Overview of Functionality Configuration Parameters Processing... 8 Construction Industry Solutions, 20 Dec 2011 Page 2 of 9

3 1 Purpose of this Document In COINS OA Payroll, you may choose to pay your employees via EFT (Electronic Funds Transfer), also known as Direct Deposit. This document is designed to assist you in implementing EFT for US Payroll. 1.1 Overview of Functionality Outlined below are details concerning what you need to set up, as well as other relevant information you need to know to successfully implement EFT payments in US Payroll. OA allows employees to have more than one EFT transfer within a check, and also allows you to choose a pay method of Check even when an employee has EFT designated as their payment option. This is useful for Bonus payments as well as Layoff payments. Employees who elect EFT as their payment type can also elect to receive their payslips via . Note: Refer to the Online Documentation Payroll topic How To Secure PR Payslips to Employees in OA for more information on ing secure payslips in OA. Construction Industry Solutions, 20 Dec 2011 Page 3 of 9

4 2 Configuration The following setup is required to begin using EFT in COINS OA. 1. In Cash Manager, go to Setup > Maintenance > Bank Accounts. Complete the file maintenance for producing an EFT file. Required fields are Routing Number, Account Number, and Create a Balancing Debit EFT Entry. 2. Complete the Frequency Specific Parameters in Payroll > [Frequency] > Setup > Parameters, as described in Parameters on page Go to Payroll > Global Setup > Pay Items. Create additional pay items to hold secondary EFT accounts. Pay items control what is displayed on the payslip. Create one pay item for each secondary account in use. It is recommended that you have company policy which limits the number of EFT accounts among which one employee can allocate his net pay. 4. Go to Payroll > Global Setup > Item Sequences. Add the new pay items to Sequence Maintenance. Generally, they should follow Net Pay in the sequence. 5. Go to Payroll > Global Setup > Parameters. Construction Industry Solutions, 20 Dec 2011 Page 4 of 9

5 a. Complete the PR/CASHBACS parameter, which controls the posting entry to Cash Manager. b. Complete the PR/XPAYITMS parameter, which controls whether secondary EFT Accounts are to be presented on the payslip or not. NOTE: EFT processing needs to be generated prior to printing payslips. Otherwise, you will not be able to see the Extra Bank Account Details on the payslip. 6. Configure Payslips for use as a remittance advice to your employees. You may also choose to payslips to your employees. Setup is described separately. 7. Set up Employee Bank information on the Payment tab of PR Employee Maintenance. An employee can have one primary EFT Account and many Extra Bank Account Details EFT accounts. An amount can be entered in the Primary account which acts as threshold and must be met before Extra Bank Account Details EFT accounts are funded. Extra Bank Account Details EFT accounts are funded in the order they are listed on the Payment tab of PR Employee Maintenance. Examples In the illustration below, Employee Michael Murphy has requested that his net pay be distributed among 3 personal bank accounts. If his net pay is more than $500, his primary account is to receive at least $500. In the event his net pay is less than $500, his primary account is to receive all of his net pay. Example 1: Michael Murphy receives a check with a net payment amount of $450. His primary account will receive the full amount of $450, and accounts 2 and 3 will not receive any funds. Construction Industry Solutions, 20 Dec 2011 Page 5 of 9

6 Example 2: Michael Murphy receives a check with a net payment amount of $750. His primary EFT account will receive $500. EFT account #2 (Holiday Club) will receive $250; EFT account #3 will not receive any funds. Example 3: Michael Murphy receives a check with a net payment amount of $900. His primary EFT account will receive $550. EFT account #2 (Holiday Club) will receive $300; EFT account #3 will receive $50. Construction Industry Solutions, 20 Dec 2011 Page 6 of 9

7 3 Parameters Note: Before making any changes to Payroll parameters, be sure to make them Company Specific by selecting the parameters and using Choose Action > Create Company Specific. 1. Go to Payroll > Global Setup > Parameters. Change PR/CASHBACS to One. This means that Cash Manager will receive one summary transaction for all of your EFT transactions posted in a payroll period. 2. Go to Payroll > Global Setup > Parameter PR/XPAYITMS. Enter the pay items created in which to hold Extra Bank Account Details. 3. Complete the frequency specific parameters shown below. This needs to be done for each payroll frequency in every active payroll company under Setup > Parameters. PR/BACSEXEC The operating system command to set permissions on your EFT file. PR/BACSFILE The full pathname of the EFT File. Be sure to name the file differently for each Frequency in each company. PR/BACSMCOS The company number for EFT. PR/BACSMED The media id for US EFT is 16. Construction Industry Solutions, 20 Dec 2011 Page 7 of 9

8 4 Processing Payroll processing for EFT is only slightly different than processing payroll using Checks only as your method of payment. The differences are outlined below. 1. You may choose the method of payment at the time you enter checks. If an employee ordinarily receives their pay as EFT, you may make a one-time change to the payment method on a single check during timecard entry. 2. Once you have processed Calculations and accepted your payroll, run the EFT Output and Print function. A report is produced in addition to your output file. 3. Use Print Payslips to produce an EFT remittance advice for your employees. Construction Industry Solutions, 20 Dec 2011 Page 8 of 9

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