A standard feature of CCIS Payroll is the ability to deposit all of an employee’s pay into a bank account.
Two different types of direct deposit are supported.
1. The first uses a third party, National Payment Corporation. They handle all of the protocols for collecting and transferring your payroll to the employee’s bank account. If an employee does not have a bank account, payroll can be put onto Payroll Pay Cards (state law permitting). Payroll pay cards are available through National Payment Corporation.
2. The other supported type of direct deposit involves sending payroll information directly to your (or your Client’s) bank. CCIS Payroll creates a file using the protocol for an ACH Payroll file.
In order to perform Direct Deposit, your computer needs to be connected to the internet. You also need to have made prior arrangements with your bank, or a third party processor. The only third-party processor that CCIS Payroll supports is National Payment Corporation.
CCIS Payroll supports one bank account per Client, and a maximum of two bank accounts per employee.
Direct Deposit is an all-or-nothing situation in that an employee may not have part of his net pay deposited, and part paid in form of a check.
What the employee receives
Employees on Direct Deposit receive two items to help them keep track of their pay: a non-negotiable remittance advice, and a note beside the deposit on their bank statement.
The remittance advice received depends on the format you use for pay remittance. If you use only vouchers, the employee receives a numbered slip showing the amounts deposited into each account.
If you print checks, either on preprinted checks or using our optional MICR Encoder, the scripted amount on the check changes to read "Please see the stub for Direct Deposit information". The words "NON NEGOTIABLE COPY" are printed in the signature area, and the numeric dollar amount is replaced by the word VOID except on MICR checks.
Any remittance method you use will produce a numbered document. The number will appear on the employee's bank statement beside the deposit in this form. "Pay #####" where ##### is the document number. For example, if you issue the employee a non-negotiable check number 12345, the employee will see "Pay 12345" beside that deposit.
Setting up and using Direct Deposit
There are seven steps to setting up and using the Direct Deposit feature:
1. Open an account with National Payment Corporation, or make arrangements with your bank.
2. Set up the banking information for the client.
3. Print the employee authorization form.
4. Set up the banking information for the employee.
5. Prenote the employee.
6. Pay your employees.
7. Transmit the payroll to your bank or to NPC.
Setting up Clients for Direct Deposit
To set up a Client for Direct Deposit:1. Select Clients then Open and open the Client.
2. Choose the Bank Information tab
3. Enter the name and address of the bank as it appears on the check. It is very import to enter a Street Address, even if there isn’t one printed on the check. CCIS Payroll does not consider the direct deposit information to be complete without the Street address. You cannot set up employees for Direct Deposit if CCIS Payroll doesn’t think the bank information is complete.
4. The Fraction refers to the tracing number that is printed on most checks. It is often in very small print, and usually formatted like a fraction 12-34/5678. It is not needed for Direct Deposit.
5. Put the bank account number into the Account Number field. Use a capital C to represent the on-us symbol. Include any imbedded blanks and dashes.
6. Enter the nine (9)-digit Routing and Transit number into its field. CCIS Payroll verifies the entry by computing the Check Digit and comparing it to that in the number.
7. Select the appropriate Account Type, Checking or Savings.
The Direct Deposit area holds information used for Direct Deposit.
• Account Number: If you are using the ACH method to send Direct Deposit, enter the letters ACH here. Otherwise, enter the 8-digit Account Number that you are assigned by NPC.
• Security Key contains the 4-letter encode word supplied by NPC. It is not used for ACH transmittals.
• Password contains a 10-character password that you use when transmitting files to NPC. It is not used for ACH transmittals.
8. Choose Save or select F10 when done.
Preparing payroll for Direct Deposit
Direct deposit is a simple extra step to the typical check writing payroll process.
After first setting up your Client and its employees with the required direct deposit information, you prepare payroll in the usual way using any of the live payroll modes: Time Entry, Automatic, or Import.
1. Print your checks or vouchers. This ensures that you provide the required information to your employee, and that each direct deposit transaction has a number.
2. Print your Check Register.
3. Print your Payroll Register.
4. Print your Summary Report if you must make a semi-weekly deposit per the IRS deposit rules.
5. Transmit the direct deposits to NPC or your bank.
NOTE: Transmitting the Direct Deposit closes the current payroll job. You will not be able to return to make corrections or print any reports you may have missed.
Transmitting Direct Deposit to your bank
CCIS Payroll prepares an ACH deposit file for transmission over the internet using the ACH specifications for a Payroll file. This file is not complete and ready to transmit through the ACH system to the Federal Reserve. Your bank must add any necessary batch headers and footers. If your bank cannot do this, please use a third Party such as National Payment Corporation.
It contains:
• A Type 1 File Header record
• A Type 5 Customer Header record
• One Type 6 Detail record for every employee transaction
• A Type 8 Customer Total record
• A Type 9 Batch Total record
This set of records defines one complete batch file that you send to your bank. The bank will provide you with the necessary software and connection protocols. Their software may do more than simply send the file; it may perform data validation, provide reports, and have other options. Please refer to the documentation supplied by the bank.
This is the only file format that we support. It is not intended or designed to be sent through the banking system alone so it does not have the header information for the Federal Reserve and other expected banking controls. Your bank merges this file in with the other transactions during its communications with the ACH network.
If your bank insists on having a stand-alone file, please consider using National Payment as your direct-deposit supplier.
The file is located in the current year folder.
It is called "DDBat" + 3-digit batch number + "." + the Client number. The 12th batch for Client 156 would be called, "DDBat012.156". This is the name to supply to the bank’s software.
Direct deposit files are prepared for the current Client only.
To prepare the file:
1. Choose Calculations.
2. Then select Direct Deposit | Send file.
Please remember that sending the direct deposit file closes the current payroll job forever. If you have not yet printed checks or registers, please do so now. CCIS Payroll reminds you in this window:
3. Choose Yes and CCIS Payroll prepares the file and shows you a summary:
4. Select OK if this summary matches your controls, or Cancel to terminate.
• CCIS Payroll opens a browser window asking for the URL to your bank or financial institution. Enter the fully-qualified URL – http://www.mybanksurl.com – and choose OK.
5. The bank’s web page opens.
6. Complete the screens as instructed by your bank. When it comes time to locate the file to upload, it is shown in this highlighted area.
7. CCIS Payroll has placed this location on its clipboard so all you have to do is click on the upload file box in the web page and press Shift + Insert. This pastes the address into the browser.
8. Choose Close when done.
9. If all went well, select Yes in the next dialog. CCIS Payroll creates an archive file in a sub-folder of the current year. The file is renamed to make it easy to identify.
• Example of a archive file entry: Client 014 Batch 001 sent 06_25_2008 08_33PM 10. The job is then closed.
Sending Direct Deposit files to NPC
CCIS Payroll creates a file using National Payment Corporation specifications. This file is located in the current year folder. It is called "DDBat" + 3-digit batch number + "." + the Client number.
Example: The 12th batch for Client 156 would be called "DDBat012.156". This is the name to supply to the bank’s software.
Direct deposit files are prepared for the current Client only.
To prepare the file:
1. Choose Calculations.
2. Select Direct Deposit | Send file.
Please remember that sending the direct deposit file closes the current payroll job forever. If you have not yet printed checks or registers, please do so now. CCIS Payroll reminds you in this window:
3. Choose Yes and CCIS Payroll prepares the file and shows you a summary:
4. Select OK if this summary matches your controls, or Cancel to terminate.
5. CCIS Payroll connects you to the NPC web site login page.
6. Proceed through until you arrive at the final page before sending. Be sure to select Phoenix Phive as the Type.
7. When it comes time to locate the file to upload, it is shown in this highlighted area.
8. CCIS Payroll has placed this location on its clipboard so all you have to do is click on the upload file box in the web page and press Shift + Insert. This pastes the address into the browser.
9. Complete the rest of the process using the instructions from NPC. If you need help, please call NPC at 813-222-0333.
10. Choose Close when done.
11. If all went well, select Yes in the next dialog. CCIS Payroll creates an archive file in a sub-folder of the current year. The file is renamed to make it easy to identify. Example of a archive file entry: Client 014 Batch 001 sent 06_25_2008 08_33PM.
12. The job is then closed.
Changes in payroll reports
The Check Register shows 2 asterisks ** beside each check that was sent using direct deposit. There are totals of the number and value of direct deposits at the end of the Check Register. The Current Payroll Register is unchanged.