Sage 50 Direct Deposit Payroll - Setup Instruction and Guide

Table of Contents

1 Guide to Setting up Sage 50 Direct Deposit
2 How do I get started with setting up direct deposits in SAGE 50?
3 Set Up a Sage 50 Direct Deposit Employee
4 How to Activate Direct Deposits in Sage 50?
5 Processing of Sage 50 Direct Deposit Payroll Transactions
6 Troubleshooting SAGE 50 Direct Deposit Errors & Problems
7 Frequently Asked Questions

Guide to Setting up Sage 50 Direct Deposit

The exact meaning of “Direct Deposit” is a method of paying your employees by depositing their paychecks directly into their bank accounts. By using the direct deposit feature you save the time and money spent on printing paper checks. It also curtails the time that the employees spend going to the bank to cash paychecks.

The Sage 50 direct deposit feature is very beneficial for the employer as it saves a lot of quality time that can be used to plan new strategies for the business. If you want to set up the Sage 50 direct deposit feature and have some queries related to that you can contact Sage 50 Technical Support.

How do I get started with setting up direct deposits in SAGE 50?

To begin setting up direct deposit in Sage 50, access the Payroll module. Then, navigate to the Direct Deposit section and input your employees’ banking information securely. Finally, follow the step-by-step instructions to complete the process, ensuring your payroll is efficiently deposited into their accounts.

Step 1: Enable Sage 50 Direct Deposit. Sign up for Sage 50 Direct Deposit by

Call to Sage Helpline number (toll-free)
Once you sign up, you will receive your authorization code
Enter this code in Sage 50
Go to the System navigation area
Click Edit Company Information Now.
Click the arrow for Direct Deposit.
Enter your code and click OK

Step 2: Enter banking information in Sage 50

Click the arrow for Direct Deposit
Enter your company banking information (routing and account number).
Choose your Cash Account and Fee Expense Account that you want your fees and transactions to post to

Step 3: Set up employee information

Go to Employees & Payroll -> Employees -> View and Edit Employees -> Click the employee’s name. Enter their banking information on the Direct Deposit tab.

User can also boost their direct deposit payments by using SAGE 50 Cloud Hosting, so the company bookkeeper or your company accounts can work for employee salary calculation and tax deduction anytime. To explore more, contact SAGE Support Now.

Step 4: Sync and approve pre-notes

Sync all of your company and employee bank information (pre-notes) for approval
Use the WebSync Wizard so you can be ready to pay your employees

To sync pre-notes:

Select Services -> WebSync Wizard.
Enter your login credentials for Sage 50 Direct Deposit (authorization code)
Click Next through the wizard and click Finish.

Check for pre-note Approval

Need to wait after syncing your pre-notes.
Open the WebSync Wizard and proceed until you get to the Finish window.
Go to Maintain Employees & Sales Reps -> Direct Deposit tab. The status in the Pre-Note column should show Approved. Also, the Employee uses direct deposit check box is now enabled.

Step 5: Start paying your employees.

You can easily sync your first direct deposit payroll. The deposit date is determined by the check date. If you’re paying a single direct deposit employee:

Go to Tasks -> Payroll Entry
To pay multiple employees, go to Tasks -> Select Payroll Entry
Save and post the checks
Open the WebSync Wizard to process the direct deposit transactions.
Enter your login credentials (enter your PIN) and click Finish.

As with Direct deposit, Sage 50 EFT Setup is a very easy process and a better alternative to paying.

Set Up a Sage 50 Direct Deposit Employee

The Direct Deposit tab of the Maintain Employees/Sales Reps window allows you to set up direct deposit information for an enrolled employee. You can establish up to four accounts to which payroll funds will be distributed. Follow the below steps:

Select Employees/Sales Representatives from the Maintain menu.
Enter or select the employee’s ID in the Employee ID field of the Maintain Employees/Sales Reps window.
Go to the Direct Deposit tab.
First, create/set up Account 1. In the Account Type field opposite Account 1, select either checking or savings from the drop-down list.
Enter these two account identification numbers as provided on the Employee Authorization Agreement in the Routing/Transit Number and Bank Account Number fields.
Choose Amount, Percent, or Remainder from the drop-down list in the Allocation Method field.
Do one of the following:
1. Enter the percentage of employee net pay you want to allocate to Account 1 in the % (Percentage) field if you are using the Percent allocation method. If you wish to distribute to only one account, enter 100 percent. A running total is displayed at the bottom of Sage 50’s window in the Total Distributed field.
2. The Fixed Dollar Amount field allows you to enter the dollar amount of employee net pay you want to distribute to Account 1 using the Amount allocation method. Sage 50 keeps a running total in the Total Distributed field.
Set up additional accounts by following steps 4 through 7 in order.
You will see a message explaining that a pre-note will be created for approval of direct deposit for this employee. Select OK to dismiss the message.
1. Syncing the pre-note through WebSync will get you approved. The note will take up to six banking business days to be approved. Until you sync the note, the Pre-Note Status field opposite the appropriate account will read “Not Sent.” Once the note is synced, the field will indicate approval as “Pending.” When a note is approved and an approval notification is synced to the Sage 50 desktop, the field will read “Approved.” Tell me more about synchronizing employee pre-notes.
Note: It is recommended that you print the Direct Deposit Pre-Sync report before syncing either pre-notes or direct deposit payroll transactions to ensure accuracy.
For each additional direct deposit employee, repeat the steps above.

How to Activate Direct Deposits in Sage 50?

Below is the list of steps to activate direct deposits in Sage 50. Follow all the steps carefully:

Step 1: Authorize the Sage 50 Direct Deposit

First of all, you need to log into Sage 50 software.
After that, enter the Authorization code provided by Sage 50.
Then, you need to go to the system Navigation Menu.
After that, you need to click on the edit company details.
After clicking the edit company, you need to click on Direct deposit.
Now, you need to add the code and click on OK.

Step 2: The Employee Details

First, you need to go to the menu bar and click on Employees & Payroll
Then, Go to the Employees
After that, Click on View and Edit Employees.
After clicking View and Edit Employees, click on the employee’s full name.
Now, here you need to fill in the complete Banking information on the Direct Deposit option.

Step 3: Pay your Employees

First, you need to go to the Tasks Menu.
Then, go to the Payroll entry
After that, go to Tasks to pay more than one employee
Here, you can select the payroll entry.
Save and post the checks.
Now, to start the Direct Deposit transactions, you need to launch the WebSync Wizard.
After that, you need to enter login credentials and click on Close.
Single Employee – From Tasks, select Payroll Entry.
Multiple Employees – From Tasks, select Payroll Entry

Setting Up Common Payroll Deductions

Below is a list of examples you can follow to set up or track common payroll fields and deductions.

Set up a company 401(k) plan and track contributions
Track employee vacation or sick time
Record employee tips
Set up group health payroll deductions
Set up fringe benefits
Set up bonus or commission fields for hourly employees
Set up local payroll taxes
Set up multiple state withholdings
Track employee loans or advances
Set up labor tax or union dues deductions
Set up an employee garnishment
Set up Federal Earned Income Credit

Processing of Sage 50 Direct Deposit Payroll Transactions

Once your company and enrolled employees are set up and approved for direct deposit, you’re ready to begin generating and synchronizing payroll transactions. The following steps provide an overview of the direct deposit payroll process.

Note: Because Sage Direct Deposit takes three banking business days to process, you should always create and synchronize your Direct Deposit payroll transactions two business days before payday.

Create payroll transactions as you usually would: Select either the payroll entry or the employees – In the Filter section window, you select the employee or employees you want to pay.

If you want to print non-negotiable direct deposit suggestions for your enrolled employee or employees, do one of the following before saving the payroll transaction(s):
1. In the Payroll Entry window, choose the Direct Deposit check box, and then choose the Print button.
2. In the Select Employees to Pay window, choose the check box in the DD column against each direct deposit employee for whom you want to print an advice form. Then choose the Print button to print the forms.
When payroll is done, you’re ready to synchronize direct deposit requests with your company’s financial institution. You do this in the Direct Deposit verification window of the WebSync wizard.
After sync, transactions are transmitted to Sage 50 through the ACH network.
The transactions are verified by Sage 50 and then sent electronically to your company’s financial institution in the form of a request.
It debits your company account for the funds and direct deposit fees, then withdraws the required amount. After the request is processed by your company bank, the funds are deposited in the employee’s account(s). The bank allocates and transmits the funds to the direct deposit employee’s financial institution, where they are deposited in the employee’s account(s). On the employee’s next monthly bank statement, the direct deposit transaction appears.

Troubleshooting SAGE 50 Direct Deposit Errors & Problems

Accountspro is a Sage Consulting agency that caters to best support services and assistance for all the queries and errors in Sage 50 software. Here you can grab the Sage Cloud Hosting benefits for better performance of your business. Immediately report all Sage-related errors and get quick and responsive support.

SAGE 50 Direct Deposit Error code 26
Error: “This Sage 50 Accounting company is not associated with the Direct Deposit company you have selected.”
SAGE 50 Direct Deposit Synchronization Error
Sync failed during Direct Deposit SAGE 50
“The Syncing of your Direct deposit has failed.”
Unable to generate EFT Direct file directly in Sage 50
Direct Deposit service Not Activated in SAGE 50

Frequently Asked Questions

How to do direct deposit payroll in Sage 50?

✅ Input your banking details in Sage 50 by clicking the arrow next to Direct Deposit (observe the updated status as “Active”).
✅ Provide your company’s banking information, including the routing and account numbers.
✅ Select your preferred Cash Account and Fee Expense Account for the posting of fees and transactions.

How do you pay your Employee’s direct deposit?

Steps to Set Up Direct Deposit for Your Employees:
✅ Choose a payroll service provider.
✅ Establish a connection with your bank.
✅ Gather essential information from your employees.
✅ Make a payroll schedule.
✅ Process payroll.

What do you need to set up direct deposit in Sage 50?

Setting up your direct deposit within Sage 50 is straightforward. You just need some direct deposit authorization forms and/or a voided check provided by your employer. Many banks and financial institutions offer pre-filled forms through online banking, making the process of setting up direct deposit very easy.

Can you set up direct deposit in Sage 50 yourself?

Steps to Set Up Direct Deposit in Sage 50:
✅ Get a direct deposit authorization form.
✅ Complete the form with your account information.
✅ Verify the deposit amount.
✅ Include a deposit slip or voided check.
✅ Submit the completed direct deposit form.

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Sage 50 Direct Deposit Payroll – Setup Instruction and Guide