Direct Credit Banking

The Direct Credit Banking feature directly credits employee's pays into his/her bank account via electronic or magnetic media using EFT.

An employee's entire net pay can be credited to the main or default bank account, or it can be split over several bank accounts. Preceda also provides the facility to apply FID and BAD tax allowances for employees paid by bank credit.

  • If Direct bank credits by EFT is not used, this feature can be used to produce the necessary bank credit reports that are sent to banks.

 

There are different ways in which an employee's pay and superannuation contributions can be handled:

  1. The entire net pay can be credited to a single bank account using the employee's default bank account.
  2. A portion of the net pay can be deducted and credited to a separate bank account. This type of bank credit uses an Allowance/Deduction with specific Classifications: Closed4 - After Tax Deduction, M - Cash in Hand, P - After tax Deduction % of linked Earnings or Gross, R- After Tax Deduction % of ASG, V - Salary Sacrifice % of Linked Earnings or Gross, 3 - Before Tax Deduction (Further information about Classifications). The remainder of the net pay may be credited to the employee's default bank account.
  1. A portion of the net pay may be credited to a separate bank account without being deducted from the net pay. This type of bank credit uses an Allowance/Deduction Code with a Classification of K - Bank Credit Split. The remainder of the net pay can be credited to the employee's default bank account.
  2. Some of the employee's pay can be credited to a bank account with the remainder paid by a different pay method such as cheque or cash. However, this has implications if split into multiple bank accounts.
  3. Non-contributory Allowance/Deduction ClassificationsClosed: N - Non Contributory $, Q - Non Contributory % of ASG, S - Non Contributory % of Linked Earnings or Gross (Further information about Classifications). This is useful if the employee has a choice of fund options as it allows for contributions to be passed directly to the employee's superannuation bank account instead of drawing a cheque at the end of the month.

 

  1. Establish EFT Requirements. This enables you to define details about the media being used to send bank credits to financial institutions (e.g. tape or file via a modem). 
  2. Establish BSB Codes. These are used to identify each financial institution, including your organization's company accounts.
  3. Establish Company Bank Details. This identifies the company bank account details that employee pays are withdrawn from. This task is only required if using the EFT facility.
  4. Establish Allowance/Deduction records identifying accounts for splitting the net pay, if required.
  5. On each employee's Payment Details window, specify the Pay Method as 'B' for Bank Credit.
  6. On each employee's Bank window, enter details about the employee's bank accounts.
  7. During the payrun, you must run one of the following functions from the Payrun Reports menu:
    • Bank Credit Report - Run this report only if the EFT facility is not being used. A separate page is produced for each bank, listing the required bank credits for each relevant employee. It is this report that you split and send to the relevant banks.
    • EFT Processing - This function is used only if the EFT facility is being used. It produces the direct credit banking details according to the details specified in the Define EFT Requirements function.

Note:

  • The EFT Processing function must be run separately for each type of financial institution.
  • Two reports are produced from the EFT Processing function.
  • Extract Error Report PAY63 lists any errors that have occurred.
  • Create Report PAY64 lists the content of the direct crediting banking file PAY64.