A direct deposit, ACH, is a type of electronic funds transfer of the employee's net pay to the employee's personal bank account.
EFT transactions are used to move net payments when a company provides direct deposit as a payment option to an employees where the employee has authorized the employer to transfer net pays into the employee's personal bank account.
Banking Setup by Administrators on the Bank Accounts Table, Originating Bank Table, and Bank Transit Codes Table.
Other ACH-related validation includes the Company, Vendors, Tax Agencies, and the Net Pay Codes.
Employee's direct deposit banking information is defined on the Employee Net Pay Detail screen. The system determines which employees will get a Direct Deposit by the Employee Net Pays Detail screen, which contains all of the employees' pertinent information including the Bank Transit Code and Account Numbers needed to create an ACH transaction.
The pre-note expiration date is the last date for a test case to process before actual employee direct deposits to begin. Where the check date is greater than the pre-note expiration date, then the system automatically disables the pre-note and the direct deposit can process.
Your payroll service provider will create ACH files for your organization through Enterprise Manager and will transmit them according to the terms of your organization's agreement with the payroll service provider.