DIRECT-PAY
FEATURES
DIRECT-PAY automatically prepares data for direct crediting of employees’ bank accounts. The system distributes net pay proceeds via the Automated Clearing House (ACH) instead of issuing checks. Those employees participating in the direct deposit plan receive pay advices similar in appearance to paychecks.
DIRECT-PAY also provides for non-participants, who receive regular paychecks.
DIRECT-PAY allows employees to distribute their deposits among an unlimited number of bank accounts in an unlimited number of banks if they choose. Pre-notification test transmissions assure that employee information is accurate.
DIRECT-PAY produces data in ACH format, which can be transferred to the disbursing bank via modem or via floppy diskette depending on arrangements with the disbursing bank.
The system maintains records of transmissions and provides a variety of reports for inquiry and audit trail purposes.
DIRECT-PAY is a "seemless" modification of LegalPoint Payroll. That is to say, all functions are run from Legalpoint Payroll menus without leaving the LegalPoint Payroll environment.
PROCESSING OVERVIEW
The overall processing sequence for DIRECT-PAY is as follows:
The user processes payroll as usual, adding and changing employees as needed. With DIRECT-PAY, the user also enters any new or changed information about the employee’s banking arrangements before processing Payroll.
For new DIRECT-PAY participants, the user sends a pre-notification test to the participant’s bank. This pre-notification test assures that banking data is accurate and that the initial live payroll transmission will be successful.
The user posts and calculates payroll for all employees without regard to whether or not an employee participates in the direct deposit plan. Non-participants receive checks, DIRECT-PAY participants receive advices. Advices and checks use separate number series.
The system prepares a transmission record for each participant, in ACH format, along with appropriate control and security information required by the ACH. The user may deliver this information to the bank handling the company’s payroll via floppy disk or by modem transmission if supported by the bank.
DIRECT-PAY complies with ACH formats and protocols and prepares prescribed totals for balancing transmissions.
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