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About Direct Deposit (EFT)

Direct deposit, also known as electronic funds transfer (or EFT), is a way for you to electronically transfer payroll checks from your company’s bank account directly to your employees’ bank accounts.

Setting Up Direct Deposit

Before you can process direct deposit payments for your employees, you must set up your direct deposit system, as follows:

Set up information about the company's (employer's) bank account.
Set up employees' direct deposit (EFT) information.
At least five banking days before you need to process direct deposits, send prenotes to your employees' bank accounts.
Optionally set up to enable combining multiple EFT files into a single file for submission.

Creating Direct Deposit Payroll

Calculate Payroll. Select the Create EFT Checks check box to include employees who are set up for direct deposit.
Print and post Payroll Checks.
Create EFT File.
If you have enabled the combination EFT files, and generate more than one EFT file, you can use the EFT Combine File window to combine the files into a single one before submitting it to the bank.
Submit the EFT file to the bank.
Contact your bank or refer to their publications to determine their submission procedures. Your bank’s EFT (Electronic Funds Transfer) guideline documents or customer service should provide all the information necessary to submit files and validate the process.