How to Set Up Direct Deposit in Sage 50?

Last updated: March 7th, 2024

Setting Up Direct Deposit in Sage 50: A Comprehensive Guide

Direct deposit is a convenient method for employers to pay their employees by depositing paychecks directly into their bank accounts. With the Sage 50 direct deposit feature, employers can save time and money spent on printing paper checks. It also benefits employees as they no longer need to visit banks to deposit their paychecks.

In this guide, we will walk you through the step-by-step process of setting up direct deposit in Sage 50.

Prerequisites

Before you begin setting up direct deposit in Sage 50, ensure that you have the following:

• An active Sage 50 account
• Authorization code from Sage
• Company banking information
• Employee banking information

Step-by-Step Guide to Set Up Direct Deposit in Sage 50

Step 1: Contact Sage and Authorize Direct Deposit

1. Call Sage 50 and sign up for Sage 50 Direct Deposit.
2. Upon signing up, you will receive an authorization code.
3. Open Sage 50 and navigate to System Navigation.
4. Click on Edit Company Information Now.
5. Click on the arrow next to the Direct Deposit tab.
6. Enter the authorization code and click OK.

Step 2: Set Up Your Banking Information

1. Click on the arrow next to Direct Deposit.
2. Enter your banking information in the relevant fields.
3. Select your Fee Expense Account and Cash Account where you want to post your transactions and fees.

Step 3: Set Up Your Employee Information

1. Navigate to Employee & Payroll and click on Employees.
2. Click on View & Employees.
3. Click on the name of the employee for which you want to enter the relevant banking information.
4. Click on the arrow next to Direct Deposit.
5. Enter the employee’s banking information in the space provided.

Step 4: Sync and Approve the Pre-Notes

In this step, you need to sync all the bank information (pre-notes) related to your company and employees.

1. Navigate to Services and click on WebSync Wizard.
2. Enter your authorization code for Sage 50 Direct Deposit when prompted and click Next.
3. Click Finish and wait for the pre-note approval.
4. To check your approval status, open WebSync Wizard again.
5. Navigate to Maintain Employees & Sales Reps and click on the Direct Deposit tab.
6. Check if the status in the Pre-Note column is shown as Approved.
7. Verify if the checkbox named Employee Uses Direct Deposit is enabled.

Step 5: Sync and Approve the First Direct Deposit Payroll

In this step, you can sync the first direct deposit payroll. The check date will be the date of deposit.

1. To pay one or multiple direct deposit employees, go to Tasks and then to Payroll Entry.
2. Click Save and post the checks.
3. Open the WebSync Wizard to process the direct deposit transactions.
4. Enter your login credentials and click Finish.

Tips for a Smooth Direct Deposit Setup

• Ensure that you have accurate banking information for your company and employees.
• Double-check the authorization code before entering it into Sage 50.
• Allow sufficient time for pre-note approval.
• Verify that the direct deposit status is “Approved” before processing the first payroll.

Benefits of Using Sage 50 Direct Deposit

• Saves time and money spent on printing and distributing paper checks.
• Eliminates the risk of lost or stolen checks.
• Provides a convenient and secure way for employees to receive their paychecks.
• Streamlines the payroll process for employers.

Troubleshooting Common Issues

Issue 1: Authorization Code Not Working

If you encounter an error when entering the authorization code, try the following:

• Ensure that you have entered the correct code.
• Contact Sage support for assistance.

Issue 2: Pre-Note Approval Delayed

If the pre-note approval is taking longer than expected, consider the following:

• Allow at least 2-3 business days for the approval process.
• Contact Sage support if the delay persists.

Issue 3: Direct Deposit Not Processing

If the direct deposit is not processing, try the following:

• Verify that the employee’s direct deposit status is “Approved”.
• Ensure that the banking information is accurate.
• Contact Sage support for further assistance.

By following this comprehensive guide, you should be able to set up direct deposit in Sage 50 smoothly. If you encounter any difficulties or have additional questions, don’t hesitate to reach out to Sage support for assistance.

Frequently Asked Questions (FAQs)

Q: How can I set up direct deposit for online banking?

A: Follow these steps to set up direct deposit for online banking:

1. Log in to online Banking.
2. Click on your account.
3. From the navigation menu on the right, select “View and Print Payroll Direct Deposit“.
4. From the drop-down box, select the account to which you want to deposit your payroll.
5. Click on “View and Print“. The customized form will appear on your screen.

Q: How can I reverse my deposit slip in Sage 50?

A: To reverse a deposit slip in Sage 50, follow these steps:

1. Click on the Receipts icon from the HOME window.
2. Go to the Receipt menu and select Adjust Receipt.
3. Enter your search criteria and select OK.
4. In the Adjust a Receipt window, select the receipt you wish to edit and click Select.
5. Click on the Receipt menu, then click on Reverse Receipt.
6. Click Yes on the Confirmation window.
7. Recreate and post the receipt.
8. Repeat this process for all the receipts you wish to include in the deposit slip you will recreate later.
9. Redo the Deposit Slip.

Q: What are Sage 50 Standard Fee Schedules?

A: The Sage 50 Standard Fee Schedules are as follows:

• Sage Direct Deposit Setup Fee: $75
• Base Fee: $5 per payroll (not including the Direct Deposit Transaction price)
• Direct Deposit Transactions (Weekly Payday):
  • 1-15 Deposits: $1.30 Per Deposit
  • 16-50 Deposits: $0.90 Per Deposit
  • 51+ Deposits: $0.70 Per Deposit
• Direct Deposit Transactions (Other Frequency):
  • 1-15 Deposits: $1.60 Per Deposit
  • 16-50 Deposits: $1.10 Per Deposit
  • 51+ Deposits: $0.85 Per Deposit
• Premium/Late Processing Fee: $10 Each Occurrence (Fee is applicable if payroll file is submitted at 5 p.m. ET or later on required submission day.)
• Prenote Transactions (Weekly Payday):
  • 1-15 Prenotes: $1.30 Per Prenote
  • 16-50 Prenotes: $0.90 Per Prenote
  • 51+ Prenotes: $0.70 Per Prenote
• Prenote Transactions (Other Frequency):
  • 1-15 Prenotes: $1.60 Per Prenote
  • 16-50 Prenotes: $1.10 Per Prenote
  • 51+ Prenotes: $0.85 Per Prenote
• Return Item/Notification of Change: $10 Each Item
• Direct Deposit Reversal: $35 Each Reversal
• Employer Funding NSF: $150 Per Occurrence
• Wire Transfer/Reverse Wire Transfer: $35/$50 Each Transfer
• Funding Bank Change Fee: $25 Per Occurrence
• Company Name Change: $25 Per Occurrence
• Fee Deleted Payroll Fee: $35 Per Occurrence

“Per Deposit” and “Per Prenote” are per each distribution into each account type. This affects only employees with multiple deposits per paycheck.

Note: All fees are subject to change.