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 10.22
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.
CONTENTS
1
Purpose of this Document ... 3
1.1 Overview of Functionality ... 3
2
Configuration ... 4
3
Parameters ... 7
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 email. Note:
Refer to the Online Documentation Payroll topic How To Email Secure PR Payslips to
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 7.
3. 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.
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 email 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.
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.
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.
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.
