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Draft Employer's Account

Overview

Automate fund transfers from the employer's bank account to the payroll processor's bank account using the ProPay direct deposits module. This ensures timely and accurate disbursement of payroll checks, taxes, and other payroll-related payments.

Purpose

Facilitate the transfer of funds for the entire payroll from the employer's bank account to the payroll processor's bank account, enabling the payroll processor to handle all payroll-related disbursements.

Requirements

  • The ProPay direct deposits module must be licensed
  • The payroll processor must have an agreement with a bank or any 3rd party ACH processor to handle the transfer of funds

Setup Procedure

Step 1: Access draft setup

Go to Employer > Employer Setup > Screen 1 (Basic Information and Tax Setup) and click DRAFT SETUP.

Step 2: Enable drafting

Check the box labeled YES, I want to draft the employer's bank Account to enable this feature for the employer.

Step 3: Configure draft timing

  1. Set the Days in Advance to Draft Employer's account field
  2. This determines how many days before the pay date the system will attempt to draft the client's bank account
  3. Typically, 3 banking days are recommended to ensure funds are available in the payroll processor's account at least one day before the pay date

Step 4: Enter bank information

In the DRAFT SETUP menu:

  1. Enter the employer's 9-digit bank routing number
  2. Enter the employer's bank account number

Step 5: Update payroll processor information

  1. Exit the DRAFT SETUP screen and return to the Employer setup-page-1 screen
  2. Replace all the employer's bank information with the payroll processor's bank information, as the payroll processor will now be disbursing all payments

How Funds Are Transferred

  1. On each pay date when payroll checks are printed, ProPay creates 2-4 additional entries in the tax impounds file
  2. This file is sent to the ACH processor along with any other direct deposit entries in a single batch file

Troubleshooting

Draft not processing

  1. Verify that all bank information is entered correctly in the DRAFT SETUP menu
  2. Ensure that the Days in Advance to Draft Employer's account field is set appropriately
  3. Check that the payroll processor's bank information is correctly entered in the Employer setup-page-1 screen
  4. Confirm that the ProPay direct deposits module is properly licensed

Insufficient funds in processor account

  1. Increase the Days in Advance to Draft Employer's account setting
  2. Verify timing with your financial institution or ACH processor
  3. Ensure the employer's account has sufficient funds on the draft date

Duplicate entries appearing

  1. Check that you haven't set up both draft and regular direct deposit for the same employer
  2. Verify the tax impounds file is not being duplicated
  3. Contact support if the issue persists

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