Setup Sage 50 Direct Deposit- Employee, Company Information, and Payroll

This article has been compiled for users who want to understand all about the Sage 50 Direct Deposit feature. Before learning any Sage-specific details, the user will first learn about what a direct deposit actually is and what it signifies.

After that, the user will also learn about the various things that they can achieve in Sage 50 while trying to make the best use of the Direct Deposit feature.

What is Direct Deposit in Sage 50

Before setting up the direct deposit in Sage 50, some users might be wondering what the phrase ‘direct deposit’ actually means. A direct deposit is a payment made directly into a payee’s account. The direct deposit method is seen most of the time in businesses where employers pay all of their employees through this transaction method instead of any other types of deposits that exist.

A good thing about direct deposit is that the payments that are made, are made electronically from one account to another rather than one employer handing out checks to all of their employees and the employees then depositing those cheks into their accounts. Another purpose that direct deposit serves aside from payments made to payees is that it can also be used for tax refunds.

Once a direct deposit is made into a payee’s account, the account is automatically credited, and clearance for the money is not necessary. So, to sum up, it can be concluded from the pointers mentioned above that direct deposit is a great feature as, first and foremost, it eliminates the need for employers to hand out individual cheks to every employee, thus eliminating the need to spend time and money to carry out the whole process of making payments. Moreover, it saves the time of all of the employees as they are no longer required to visit the bank every month and deposit their salary.

Setting Up Direct Deposit with Sage 50

The process of setting up the direct deposit with Sage 50 is a very simple process that does not require much of the user’s time. Following are the steps that the users can follow so that they can set up the direct deposit feature in Sage 50:

  • The first thing user needs to contact the Sage team in order to sign up for the direct deposit.
  • Once the user has successfully signed up for the direct deposit, the user will be provided with an authorization code. The user needs to enter the code they have received in Sage 50. To enter the code in Sage 50, the user needs to do the following.
    • First, the user needs to go to the ‘System Navigation’ section. 
    • Click on the option titled ‘Edit Company Information.
    • Then needs to click on the arrow that is for ‘Direct Deposit.
    • Now, the user will be asked to enter the authorization code that they have. Once the user has entered the code, they can press ‘OK’.
  • The next step that the user needs to complete is that they need to click on the arrow for direct deposit, and then they need to enter their company’s bank details. Furthermore, the user must choose their cash account and a fee expense account that they want their fees and transactions to post to.
  • Now, the user must set up their employee information.
    • To do so, the user must first go to the ‘Employees & Payroll’ tab.
    • select ‘Employees’, followed by selecting ‘View & Edit Employees’.
  • Now, the user will be able to see a list of all the names of their employees. The user must double-click on the name of the employee from this list. The user also needs to enter their banking information on the ‘Direct Deposit tab.

The user is also required to sync their company and employee bank details for approval.. Once the user receives their approval, they can begin paying their employees.

How to Processing Direct Deposit Payroll Transactions in Sage 50

The process of processing direct deposit payroll transactions is a very simple process that does not require much of the user’s time. Following are the steps that the users can follow so that they are able to begin processing direct deposit payroll transactions.

  • The first thing need to proceed to create payroll transactions as they usually would. The user is required to choose the employees whom they want to pay either from the ‘Payroll Entry’ section or the ‘Select Employees’ section.
  • Then they can begin synchronizing the requests that they had previously made for the direct deposits to their company. This can be done in the ‘Direct Deposits Confirmation’ section, which can be found in the WebSync wizard. 
  • After the synchronization has been successfully completed, all of the transactions that were in the pipeline will be sent to the Sage 50 application.
  • Once the transactions have been sent to Sage 50, what will then happen is that Sage 50 will also ensure that the transactions are sent in order. It will send the transactions electronically in the form of a request to the user’s company.

Set Up a Direct Deposit Employee in Sage 50

The process of setting up a direct deposit employee is a very simple process that does not require much of the user’s time. Following are the steps that the users can follow so that they are able to begin the process of setting up a direct deposit employee.

  • The first step user must select the option titled ‘Employees/Sales Rep’, which the user can find in the ‘Maintain’ menu.
  • Once the user has navigated into the ‘Employees/Sales Rep’ section from the ‘Maintain; menu, the user needs to provide the employee id for whom they want to search for so that the user can set up the direct deposit for them.
  • Next, the user will be required to select the ‘Direct Deposit tab.
  • In the ‘Direct Deposit’ tab, the user will further be required to set up ‘Account 1’ first.
    • In the ‘Account Type’ field that can be found in parallel to the ‘Account 1’ option, the user will have to click on the drop-down menu so as to open up a list to choose the proper type.
    • The user’s choices at this juncture will be checking and savings.
  • After making all the appropriate choices, the user will now be required to have their employee’s bank details in hand. The information that is required can be found by the user on the Employee Authorization Document, where the employee was supposed to provide their bank information. They will require these details as they are supposed to enter the relevant information in the ‘Routing/Transit Number’ and the ‘Bank Account Number fields
  • The next click on the drop-down menu so that they can choose one option among the choices AmountPercent, or Remainder.
  • The user can find the drop-down menu in the Allocation Method field. Here is what the user will have to do based on which option they select from the drop-down menu.
    • If the user picks the Percent allocation method, then the user is required to enter the percentage of the net pay of the employee that the user wishes to distribute to Account 1. The user will be required to enter this information in the % (Percentage) field. If the user only wishes to distribute to only one account, then the user can simply enter 100%. Sage 50 is capable of keeping a running total in the Total Distributed field which is located at the bottom of the window.
    • If the user picks the Amount allocation method, then the user is required to enter the dollar amount of the net pay of the employee that the user wishes to distribute to Account 1. The user will be required to enter this information in the Fixed Dollar Amount field. Sage 50 is capable of keeping a running total in the Total Distributed field which is located at the bottom of the window.
    • The user is also allowed to set up more accounts as they did with Account 1. To do so, the user will need to do nothing else except re-implement the steps that have been mentioned above for the successful completion of the process.
    • Once the user has completed all of the aforementioned steps, the user can simply press ‘Save’. Pressing on ‘Save’ will cause a message to appear telling the user that a pre-note will be created for approval of direct deposit for this employee. The user can dismiss the message by pressing ‘OK’.

How to Enter Company Direct Deposit Information in Sage 50

The process of entering company direct deposit information is a very simple process that does not require much of the user’s time. Following are the steps that the users can follow so that they are able to begin the process of entering company direct deposit information.

  • The first step elect the option titled ‘Company Information’, which the user can find in the ‘Maintain’ menu.
  • Next, the user will be required to select the ‘Direct Deposit’ tab from the ‘Maintain Company Information‘ section.
  • If the user wishes to make use of the ‘Direct Deposit’ feature, then the user needs to click on the ‘Active’ check box to select it. This needs to be done if the ‘Active’ check box was initially deselected.
  • The user will also be required to choose which company bank account will be debited when direct deposits are made. The user can either select ‘Checking’, or they can select ‘Savings’. After choosing the appropriate account, the user will be required to provide the routing number and the account number of that account.
  • Now the user will have to locate the company cash account that they wish to have debited for each direct deposit transaction and select it once found. The user can do so in the ‘Cash Account’ field, where they can make use of the ‘Lookup’ button to do the same.
  • Also, the user is required to locate and select the company cash account that will be debited for the direct deposit fee as reflected in a general journal entry that Sage 50 will make and select it once found. The user can do so in the ‘Fee Expense Account’ field, where they can make use of the Lookup button to do the same.
  • Once the user has completed all the aforementioned steps, they can press on ‘Save’, and then ‘Close’, and the process will have been completed.

Get solutions to all of your accounting and bookkeeping problems with industry leading experts

call to action img

Call Now
Chat Now

Phone

+1-347-967-4078