How To Setup Payroll to Automatically Process Direct Deposit

Using the information in this how to, setup Payroll to automatically process direct deposit information after Payroll has posted and the check register has been printed.

 To process direct deposit/an electronic ACH file,  you need the Horizon ACH module.

The automatic process will:

  1. Create a direct deposit batch in ACH
  2. Create a direct deposit file
  3. Print out a direct deposit report

The automatic process will not:

  1. Send your electronic ACH file to the bank.  Please send the file as per your bank's instructions

Setup ACH Module

Open the Horizon ACH module

NAVIGATION: MAINTAIN menu > Company

  1. Select the Company Code that payroll is processed from
  2. Review or enter a Default File ID
  3. Review or fill in the Default Path/File with the drive\folder\and file name
    1. For example: C:\payroll\mypay.txt
    2. If you do not have a folder with the name you entered on the drive you specified, add it now.  In the example above, the folder C:\payroll must exist and the user must have permissions to create files in it.  If not, your file will not be created.
  4. Review or select the Default File Type your bank needs
  5. Select Horizon Payroll (After Post) as the Default Process Type
  6. Click SAVE if you have made changes

IMPORTANT: You must be able to run Create ACH File without changing the parameters you have set for the auto-create process to work.  If you need to change the File ID, File Format or File Name then the settings you entered are not correct.

Setup Payroll Module

Open the Horizon Payroll Module

NAVIGATION: SETTINGS menu > Payroll Settings

  1. Click the Direct Deposit tab
  2. Checkmark the Auto Create ACH Batch and File box
  3. Select your log in company for ACH Location
  4. Select the payroll ACH Company Code from the ACH module where the file/path/name is for direct deposit
  5. Click SAVE
  6. Close the Payroll program and Restart for the changes to take effect.

Automatic Process

  1. After you complete the above steps, when you are processing payroll the ACH file will automatically be greated.
  2. After the payroll Check Register has been printed, the program will generate an ACH file and report.
  3. The electronic ACH file will be in the folder you entered in the ACH Company file.  
  4. Send the file as you normally sent your ACH direct deposit information
  5. The batch can still be viewed in the ACH module and a replacement file can be created from ACH if there is a problem
  6. If you wish to archive a copy of every file sent to the bank, you may rename the direct deposit file to save it.  Open Windows Explorer to find and rename the file.   The next time payroll is run the process will overwrite the existing file unless it is renamed.

11/2021

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