Distributing a Paycheck for Direct Deposit

On the EFT tab of the Employees window, you can set up multiple bank accounts for a single employee, and specify how much of the employee's pay is distributed to each account. When specifying amounts to distribute, you can use the following calculation types:

• Fixed Amount. A specific amount of funds.
• % of Gross Earnings. A percentage of the gross pay amount.
• % of Net Pay. A percentage of the net pay amount remaining after amounts using the other calculation types have been distributed.

When distributing pay to multiple bank accounts, fixed amounts are distributed first, then amounts calculated as a % of Gross Earnings, and then amounts calculated as a % of Net Pay. If multiple bank accounts use the same calculation type, pay is distributed to those accounts in alphabetic sequence of bank code.

If an employee's pay amount is less than the amounts specified for the employee's bank accounts, pay is distributed to each account in order until the total pay amount has been distributed. For example, suppose an employee has three accounts, each of which is set up to have a fixed amount of $500 distributed to it, but the employee has only $800 of pay to distribute. $500 will be distributed to the first account, $300 to the second account, and nothing to the third account.

If an employee's pay amount is more than the amounts specified for the employee's bank accounts, the total remaining pay amount is distributed to the last account, regardless of the amount specified for that account.

For example, suppose you set up bank accounts for an employee as follows:

Bank Code	Description	Instit. ID	Account Number	Calculation Type	Amount/Percent
BK1A	ABC Bank-Check	2332	1111	Fixed Amount	500.00
BK1B	ABC Bank-Svgs	2332	2222	% of Gross Earnings	20.00000
BK2	BCD Bank-Svgs	2338	3333	Fixed Amount	300.00
BK3	PR Bank	2445	4444	% of Net Pay	10.00000

Assume the employee has a paycheck in the following amounts:

Description	Amount
Gross earnings:	$2,000
Taxes:	500
Net earnings:	$1,500

Sage HRMS Payroll distributes the employee’s paycheck as follows:

1. $500 fixed amount is deposited to Account Number 1111.
2. $300 fixed amount is deposited to Account Number 3333.
3. $400 (20% of gross earnings $2,000) is deposited to Account Number 2222.
4. The remaining $300 ($1,500 – 500 – 300 – 400) is deposited to Account Number 4444, even though, according to the setup, only $30 (10% of the remaining net pay $300) should have been deposited.