Sage 50 Direct Deposit Payroll

Sage 50 Direct Deposit Payroll

Sage 50 direct deposit payroll is a feature that enables employers to directly deposit the paycheck into an employee’s bank account. The feature relies on Automated Clearing House system in the United States and the Electronic Funds Transfer in Canada. The same feature can also be used to pay and receive money from vendors and customers respectively. However, users must first set up their bank accounts and the accounting software to enable Direct Deposit.

Set Up Direct Deposit in Sage 50

Before using this feature, you need to set up both a bank account and direct deposit in Sage 50. First, you need to set up the bank account for the company and employee, after which you confirm the approval for sync.

Note: You need to sign up for Direct Deposit separately. For doing so, you can either purchase an authorization code online or contact Sage for the same. Without a valid authorization code, the feature will not be activated in your accounting software.

To set up direct deposit in Sage 50, follow the steps provided below:

  1. From the system navigation area, select Edit Company information Now.
  2. Click on the arrow for Direct Deposit.
  3. Enter Authorization Code which you received after purchasing the direct deposit feature from Sage.
  4. Click on Ok.

You can find the authorization code in your registered email account, or you can call Sage for the same.

Enter Banking Information

Setting up your bank account in Sage 50 properly is key to setting up direct deposit. Also, this will help you in reconciling bank statements easily. Since you’ll pay the employees directly through the company bank account, all that information will be synced with Sage 50.

To enter your banking information in Sage 50, follow the steps provided below:

  1. Go to the Edit Company Information Now
  2. Click on the arrow for Direct Deposit.
  3. Enter the banking information of your company:
    1. Enter the Routing/Transit Number.
    2. Enter the Bank Account Number.
  4. Select the Type of Account. You can choose between Checking and Savings.
  5. Click on Reset Account.
  6. Call the provided number to activate the bank account in Sage 50.

Once you’ve set up the company bank account, you need to do the same for the employee bank account. For each employee, you need to enter the valid banking information, and then get the connection approved to establish sync.

To store employee information for payment, follow the steps provided below:

  1. From the Employees & Payroll menu, select Employees.
  2. Click on View and Edit Employees.
  3. Select the Employee’s Name.
  4. Enter relevant banking information for the employee.
    1. Enter the Account, Branch, and Institution numbers.
    2. Enter Percentage of amount which will be directly deposited into the employee’s bank account.
  5. Click on Save and Close.
  6. Repeat the steps for the rest of the employees.

Note: You can enter up to 12 bank accounts for a single employee.

You need to manually enter the bank information for each and every employee. Without doing so, you won’t be able to directly deposit the paycheck in their account.

Check Approval for Bank Accounts

A zero dollar test can be used for verification of the employee’s bank account. The same can be done to verify the approval of the company’s bank account. These zero dollar tests are known as prenotes, which are popularly used to verify the approval of bank accounts before sending payroll through direct deposit.

To receive approval for the company and employee bank accounts, you need to sync the pre-notes. To do so, follow the steps provided below:

  1. Go to Services.
  2. Select WebSync Wizard.
  3. Enter valid credentials to log into Sage 50 Direct Deposit.
  4. Follow on-screen instructions. We recommend that you leave the settings as is.
  5. Click on Finish.

Once you’ve synced the prenotes, you need to check for their approval. Fortunately, you can do so directly from Sage 50 accounting software. The steps for the same are provided below:

  1. Go to Services, and select WebSync Wizard.
  2. Go through the instructions until you reach the finish window.
  3. Select Maintain Employees & Sales Reps.
  4. Open the Direct Deposit tab.
  5. Check the Pre-Note Column for approval of the bank account.
  6. Mark the box against Employee uses direct deposit to enable direct deposit for that particular employee.

Deposit Paycheck Directly into Bank Account of Employee

Once the bank accounts are approved, you’re ready to deposit paychecks directly into your employee’s bank account. It is essential that you submit the paycheck by 3.00 pm ET. Failure to do so will cause delay in the deposit of the paycheck. Also, it’s recommended that you submit the paychecks 3 working days before the date of payment.

To pay your employees with Direct Deposit, you can follow the steps provided below:

  1. To pay:
    1. Single Employee – From Tasks, select Payroll Entry.
    2. Multiple Employees – From Tasks, select Payroll Entry
  2. Save and Post the Checks.
  3. Launch the Websync Wizard from the services menu.
  4. Enter valid credentials to log into direct deposit.
  5. Enter the PIN.
  6. Hit Finish.

You’ve successfully submitted the paychecks. These paychecks will be cleared by the bank accordingly. It is highly recommended that you stick to our recommendations for depositing paychecks to avoid any delay. You can gain more insight into direct deposit through the help menu in Sage 50.

To know more, you can get in touch with our experts at Sage 50 technical support phone 1844-871-6289 (Toll Free.)

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