How do I activate ACH payments?

Employee Direct Deposit

When the bank approves the direct deposit information for an employee, the next step is to change employee ACH status from prenotification to active. An active ACH status means the employee is set up for direct deposit for the next pay period.

What is the status of the ACH prenotification that was returned from the bank?

The prenotification is successful. You can change the ACH status to active and the direct deposit will begin the following period. To learn how, follow the instructions in this help topic.
The prenotification is not successful. You'll need to contact the employee to make sure the employee's ACH information is set up correctly. Then, you need to repeat the prenotification test.

Using Activate ACH Payments

Change the ACH status to active on one or more direct deposit employees.

Do this...

1. Open Connect Payroll > Employees > Activate ACH Payments.

2. Select the employees to update.

The grid only displays the employees who were included in the prenotification file.

Do you want to change the direct deposit status on all employees in the prenotification file?

Yes, change the direct deposit status on all employees in the prenotification file. Click to select the checkbox in the header row to select the checkbox next to every employee name.

Checkbox in the header row

No, change only the direct deposit status on the selected employees. Click to select the checkbox next to the employee name.

Checkboxes next to employee names

3. Click GO (CTRL+G).

The direct deposit status in the employee record changes from prenotification to active. The direct deposit will be processed with the next pay period.

Using Modify Existing Employees

To change the ACH status to active on a single direct deposit employee, use Modify Existing Employees. To learn how, see How do I change ACH status to active? (Employees).