BACS is an electronic system used to make payments directly from one bank account to another. The main two types of payment are Direct Debit and BACS Direct Credit, the payments can take up to 3 working days to clear.
Setting up your BACS
From the 'Payroll Settings' > 'Business Settings' > 'Payment Settings'.
Click 'Add' to create a new set of BACS settings for your business, you will see a screen like the one pictured below. You are able to set up multiple bank accounts to pay employees from, but you only need to setup one account.
What are each of the BACS settings for?
File Format: is either standard BACS format or bank specific.
Sort Code: is the sort code of the account that the payments will be made from.
Account Number: is the account number of the account that payroll payments will be made from.
The Account Name: is the name of the account that the payment will be made from.
Submission Reference: is the description of the payroll payment that will appear on the employee’s bank statement to show where the payment has come from (please enter something here). You can then append with 'nothing' or add in 'Pay Period Ending', 'Payment Date' or 'Employee Id'.
Service User Number (SUN): is needed to process bank file payments.
Exclude footer record: means that the last 3 lines in the BACS file won't be included.
Once you have filled in the BACS details, click 'Save' and you will now be able to generate BACS files from within your pay runs. To set up a connection with Telleroo you can follow the instructions in this article.
Generating BACS files:
You can generate BACS files using the following steps:
After you have finalised a pay run, click the 'Download BACS' button from the pay run actions bar.
If you only have one set of BACS, setting your BACS file will download automatically.
If you have multiple BACS settings, you will be asked to select which BACS settings to use.
Once you’ve selected the correct BACS settings, click 'Generate BACS'.
We will remember which BACS settings you last used to generate your BACS file and will automatically select it for next time.
HMRC Payment File
You also have the ability to create a HMRC payment file if required. Full details can be seen here.
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