Don't take shortcuts - Payroll Direct Deposit !

It's no secret to anyone who has ever worked in a church office that there is ALWAYS more than enough to do. Sometimes staffers are tempted to take shortcuts and circumvent existing safeguards that have been put into place.

One example that seems to come up from time to time has to do with direct deposit of employees' payroll. A church hires a new employee who wants to be on direct deposit. To include a new person in direct deposit, the church should send a new prenotification file to the bank, because the bank tests this file, including the new employee's account information.

If the church does not send a prenotification file to the bank, they run the risk that their payroll file will fail. The church must then void and re-enter their entire payroll for all direct deposit employees in order to create a new error-free payroll direct-deposit file. This can be avoided by taking time to send a prenotification file to the bank, even if it means giving the new employee a hard check for his/her first payroll.

RDS builds safety measures into the software to help prevent errors that cost more in the long run. When hiring new employees who wish to be paid by direct deposit, send a prenotification file to the bank!

2 comments (Add your own)

1. TIM ANDERSON wrote:
The other risk is that either the account number or routing number was entered incorrectly and the monies end up in someone else account. Getting the monies back can be time consuming and costly.

Thu, October 20, 2011 @ 9:54 AM

2. Cindra wrote:
Good point, Tim!

Thu, December 29, 2011 @ 9:00 AM

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