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Transmitting Direct Deposits

> Looking for the complete guide? See Direct Deposit - Complete Guide for end-to-end instructions.

Direct deposits are transmitted to your ACH processor or financial institution once daily for all clients. ProPay creates a NACHA-compatible text file that you upload through your processor's web portal.

Before You Transmit

Access the direct deposits screen

  1. Click Client Functions > Electronic Processing > Employee Direct Deposit Bulk (or Employee Direct Deposit Single Co for single-company processing).
  2. Review the list of all direct deposit transactions ready for transmission.

Verify totals balance

Before transmitting, check that debits and credits balance to zero:

  • Credits represent deposits into employees' bank accounts.
  • Debits represent charges to employers' bank accounts.
  • The difference must equal zero. If totals don't balance, see Troubleshooting direct deposits.

Review the settle date

The settle date is when bank accounts are debited or credited. Verify this date is correct before proceeding.

Edit or delete transactions (if needed)

On a normal day, no changes should be needed. Entries are created automatically during check printing. If you need to make corrections:

  1. Select the transaction to modify.
  2. Click Edit or Delete as needed.

Export the Direct Deposits File

  1. Click Export to create your direct deposits file.
  2. ProPay creates a NACHA-compatible text file with an 8-digit name and .TXT extension (e.g., 55010424.TXT):
    • First 4 digits: Your unique sender ID number.
    • Last 4 digits: Month and day (MMDD format).

    Upload to Your ACH Processor

    Most ACH processors provide a web portal with an upload option:

    1. Log in to your ACH processor's website.
    2. Go to the file upload area.
    3. Select the text file created by ProPay.
    4. Follow your processor's instructions to complete the upload.

    Working With Pre-notes (optional)

    Pre-notes are no longer mandatory under NACHA regulations, but some banks may still require them. To create pre-notes manually:

    1. Open File Explorer and navigate to the directory where ProPay created the NACHA file.
    2. Type `EDIT ` to open the file in a text editor.
    3. Look for type "6" records (lines starting with "6").
    4. Modify transaction codes in columns 2-3:
      • Change 22 or 32 (credit) to 23 (pre-note credit).
      • Change 27 or 37 (debit) to 33 (pre-note debit).
      1. Change the amount field to zero for all pre-note transactions.
      2. Save the file.

      Printing Paper Checks Instead of Direct Deposits

      For an entire payroll

      If your ACH processor rejects the entire direct deposits file:

      1. Go to Employer > Employer Setup > Screen 4.
      2. Uncheck Employee Direct Deposits.
      3. Go to Paychecks > Print Payroll Checks.
      4. Reprint all checks.

      For a single employee

      If one employee's direct deposit bounces back:

      1. Go to Employees > Change Employee and select the employee.
      2. Click Direct Deposits.
      3. Change the percentage and amount to 0.00.
      4. Go to Paychecks > Void Payroll Checks.
      5. Void the subject paycheck.
      6. Re-enter the paycheck under the same pay date.
      7. Go to Paychecks > Print Payroll Checks.
      8. Select Selected Employees.
      9. Select the new paycheck and print it.

      Related Topics

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