Setting up a second bank account for splitting an employee's pay

ANSWER ID:31384

Each employee has one default bank account set up for their wage payments (Maintenance > Maintain Employees > Employment Details). This bank account is always associated with the Direct Credit (DC) pay code.

If you need to split an employee's wages between multiple bank accounts, you'll need to set up a new pay code for each additional bank account that the employee requires, then add that pay code to the employee's pay defaults.

Let's step you through it:

1. Create the new Pay Code

Go to the Maintenance command centre and click Maintain Pay Codes.
Click New.
For the Pay Code Type, select Payments.
Name the Pay Code DC followed by the employee's initials, for example DC MACF as shown in the example below. Also enter a description as required.
Click OK.
Click to highlight the new pay code in the Select a Pay Code list.
Click the General tab.
Enter the Default Pay Rate.
Select the option Allow rate to be modified when entering pay details. This allows you to alter the amount when entering the pay run, if required. See our example below.
Click the Other tab.
Enter the bank account number for the employee's second bank account. Also enter any particulars the employee would like to see on their bank statement.
Select the option Include in Direct Credit Schedule as shown in the example below.

2. Add the new Pay Code to the employee's Pay Defaults

Go to the Maintenance command centre and click Maintain Employees.
Click Select Employee.
Click the applicable employee then click OK.
Click the Pay Default/Totals tab.
Click New.
Select the new pay code created above, for example DC MACF.
Change the Type to Regular as shown in the example below.
Continue processing your pays as you normally would. The set amount your employee has requested to be paid into a second (or subsequent) bank account will now be automatically deducted from their pay.

The remaining amount of the employee's pay will continue to be paid into their 'default' bank account for direct credits as set in their Employment Details tab.