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Using Direct Deposit to Pay Employees

They will tell you that they do not wish to have an EFT file submitted to them. Instead, they will set you up with a login to a website where they will require you to manually fill out the fields for everyone, their account numbers and the amounts they are getting paid, and then submit it through that interface. If this is their procedure, then you do NOT need to set anything up in the Church Windows Payroll program since they do not need the EFT file it creates. Instead, you can continue using Payroll as if they were getting checks. Just use dummy check numbers (maybe a date or reference number as you prefer) and print the checks on regular paper to be used as stubs.
They will say that they accept the EFT file that Church Windows Payroll can create, which is an ACH file in NACHA format. If this is the case, continue below with the procedure.

Physically taking the computer disk with the file on it to the bank;
Emailing the file to the bank;
Transmitting the file through the bank's website.

Note:
If the bank wants you to email the file, the file should be encrypted for safe transmittal. There are various software packages for sale that can encrypt files.

Direct Deposit Setup - System Profile

EFT/ACH Information

Company Identification #: This is a 10-digit number that the bank uses to identify the account from which to draw the funds. Many banks use the customer's Federal identification number, preceded by a "1." If "Use Tax ID" is selected, then this number will be filled in automatically. If the bank identifies your account in another manner, your bank will provide you with the number to use here. If this is the case, then select "Use Other ID" and type the number into the "Company Identification #" field.
Routing Number: Enter the routing number of the checking account that you will be using to pay your employees. Check with your bank if you are uncertain of the number.
Account Number: Enter your bank account number. This is a required field if your bank requires a balanced file.
Bank Name: Enter the name of your bank (up to 23 characters long). Some banks require that this information be in all capital letters.
Organization Name: Enter your organization name here, which can be your Church name (up to 23 characters in length). This is the name displayed on the employee's bank statement identifying the deposit. Some banks require this information in all capital letters.
Entry Description: This is a description of the type of transaction (up to 10 characters) such as "Payroll" that may appear on the employee's bank statement. Some banks require this information in all capital letters.
Optional Data: This is an optional field for further identification (up to 20 characters).
Balanced Debit/Credit Entries in EFT File: If your bank requires a balanced file, click in the box.

EFT/ACH Overrides

Obtain information from your bank for the record type and fields that do not match the defaults generated by the program.

Click on the box in front of the record type to enable entries in the fields.

Direct Deposit Setup - Employee File

Click Data Setup, Employee File and select the employee. Click on the General (2) tab and scroll to the Banking Information for EFT section.
Banking Information for EFT – Click on the Use Direct Deposit checkbox.
The default setting for the EFT Detail Record - Individual ID Field is "Not required by your financial institution." You can select social security # as Individual ID, employee # as Individual ID or enter text for Individual ID depending on what your bank requires.

Print EFT Authorization Form

Create EFT Prenotify File

Select the settlement date, and click Next.
Select those employees. Click Next.
Review the list of employees, and click Finish. You will not be able to create another EFT file or Prenotify file for the same settlement date.
Use Copy EFT File menu option to create the file transmitted to the bank.

Running a Payroll with One or More Employees Using Direct Deposit

Enter the Settlement Date as the pay date for EFT transactions. The file needs to be submitted to the bank at least 2 days prior to that.

If any employees are paid by direct deposit, check the Create EFT Transaction File box. If the Create EFT Transaction File box is left blank, checks will be generated for all employees. Click on Finish.

If the employee will not be paid via EFT for this pay (e.g. a bonus calculation where you want a physical check), uncheck the Enable EFT box. Then an EFT stub will not be printed. Instead the transaction will move to the check printing queue for this pay.

The Options button gives you choices for paystub presentation.

The message, "To be deposited via Electronic Transfer" will appear in the "check" portion of the stub and the Employer Name will be shown in signature line.
Click on Next and Print.
Click on Next. If a stub did not print correctly, click to remove the checkmark from the "Stub Printed?" box. Click on Back to reprint the stubs that did not print correctly.

The following message will appear at the bottom of the screen:

"Ready to create EFT transaction file. Clicking on 'Finish' will create an EFT transaction file containing entries for the employees shown above. Once this file is created, you will not be able to create another transaction file for the same date."

Click Finish to create the EFT transaction file. Click Back twice to return to the Create EFT Transaction File – 1 screen. If you click Cancel at this point, the EFT file will not be created. The next time you enter the Payroll Program you will get a warning message, "Posted payroll entries exist that need direct deposit processing." Processing of the pending EFT transaction file must be completed before any other processing can be done.
If there are any checks to print, the Check Printing screen will open. The remaining steps are the same as Running a Payroll.

Copy EFT File

Correcting Payroll Processed Using EFT