Sage 50 Direct Deposit Payroll

Sage 50 Direct Deposit Payroll

Payroll is a critical part of any business’s financial operations. It needs to be run efficiently and accurately so that employees can receive their wages on time and in full. With the advent of technology, payroll processes have become easier and more efficient than ever before and one of the most popular solutions for managing payroll is Sage 50 Direct Deposit Payroll. In this blog post, we will explore what makes Sage 50 Direct Deposit Payroll an ideal solution for businesses looking to streamline their payroll process.

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.

The Sage Direct Deposit Feature

Sage software comprises the option to be able to directly ‘deposit’ the payment over to their respective accounts. This ensures saving of time, effort and energy that is otherwise utilized in the process of Printing the same on paper. Not just, that, but using Direct Deposits also helps in cutting down the time spent going to the bank to make manual deposits.

Read More : Payroll Direct Deposit Stub in Sage 50

How to Activate Direct Deposits in Sage

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.

Step 1: To Authorize the Sage 50 Direct Deposit

  • Start by getting in touch with the Sage Helpline 
  • Intimate them to offer you an Authorization code for the Direct Deposit.
  • Log on to Sage 50 software
  • Enter the Authorization code given to you. 
  • Go to the System Navigation area.
  • Now, click on System Navigation area
  • Next click on Edit Company Information Now.
  • Click on Direct Deposit 
  • Here, you need to enter the code 
  • Click on OK

Step 2: The Bank 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:

  • Click on Direct Deposit
  • It is here that you need to Enter the Company Banking Details which includes Routing and Account Number.
  • Select the Cash Account and the Fee Expense Account for which you want the fees and the transaction to be posted.

Once you’ve setup 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.

Step 3: The Employee Information

  • Navigate over to Employees & Payroll 
  • Go to Employees 
  • Next go to View and Edit Employees 
  • Now, click on the Employee’s full name.
  • At this point you will need to enter the complete Banking information on the Direct Deposit option.

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.

Step 4: To Sync and Approve Pre-notes

  • The user will need to sync all of the Company and Employees bank information for the process of approval. 
  • For this you can also use the Web Sync Wizard as and when you need to pay your employees.

To be able to sync the Pre-Notes:

  • Go to Services and select
  • Go to Web Sync Wizard
  • Here you need to enter the logon credentials required for the Sage 50 Direct Deposits 
  • Now, click on NEXT as prompted by the Wizard 
  • Finally click on Finish.

To Check for Pre-Note Approval

  • Wait a While for syncing the pre-notes
  • Lucnch the WebSync Wizard 
  • Continue with the sync till the Finish 
  • Navigate over to the Maintain Employees & Sales Reps
  • Go to Direct Deposits option 
  • Here check if the Pre-note column to display ‘Approved’
  • At this point, the Employee uses Direct Deposit check box is also enabled.

Step 5: Now, you can Pay your Employees

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:

At this point you will be able to easily sync the first Direct Deposit Payroll. The Check Date determines the Deposit date. In case you are paying a single direct deposit employee you will need to

  • Go to Tasks
  • Go to Payroll Entry
  • Go to Tasks to pay more than one employee 
  • Now select for Payroll Entry
  • Save and Post the Checks
  • Launch the WebSync Wizard to initiate the Direct Deposit transactions. 
  • It is here that you need to enter the logon Credentials 
  • Click on Finish
  • Single Employee – From Tasks, select Payroll Entry.
  • Multiple Employees – From Tasks, select Payroll Entry

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.

Also Read : Payroll Direct Deposit Stub in Sage 50


So, there you have it people, these are the steps involved when you need to access the Sage 50 direct deposit feature for easy transactions. In case of any queries, be sure to reach out to us and our team of experts will be more than glad to help you out.

Accounting Professionals & Specialized Experts

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Frequently Asked Questions (FAQs)

Is there a Direct Deposit Feature in Sage?

Yes. the software comprises this feature and it is used for the easy handling of the payroll to the employees

Can One Easily Access the Direct Deposit Feature in Sage?

Yes, after the initial set-up, it is very simple to directly access the salary deposited to the account of the employees.

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