Manage Employee Bank Accounts

Employees need to have a bank account set up so their net earnings have a destination. Without a bank account, an employee will be deemed "incomplete" and as such will not appear in the pay run.

Users with full access are able to set up, edit and/or delete employee bank accounts. Additionally, if the permission has been granted via the employee portal, employees can also manage their bank account set up. For more information on employee portal settings, click here.

Employees can also choose to distribute their net earnings amongst multiple bank accounts.

Adding a bank account

To add a bank account to an employee, click on the menu item "Bank Accounts" within the employee file. Then click on the "Add" button (located on the top right hand side).

There are several options of how bank accounts can be set up and instructions on each method are as follows:

Option 1: Pay employee electronically (via bank file)

This option should be chosen where payment is to be made to a bank account and is to be included in the bank file. Once you click "Add", select "Electronic" from the 'Account Type' drop down list. 

• Name: The employee's first name and surname will pre-populate in this field. You can edit this value however if the account name is different.
• Account Number: Enter the employee's account number here. The account number of 15 or 16 digits (consist of 2 digit bank code, 4 digit branch code, 7 digit account number and 2 or 3 suffix number) should be entered here.
• Particulars: This field is voluntary and only relevant if the bank account belongs to a third party that the employee intends to distribute funds to in the form of a deduction to their net earnings, for eg charitable organisations via a payroll giving deduction. The third party will advise you what value to enter in this field. This value will populate to the payment file and therefore be displayed on the bank statement of the party receiving the funds. Maximum characters allowed in this field are 12.
• Code: Similar to the 'Particulars' field, this field is voluntary and only relevant if the bank account belongs to a third party that the employee intends to distribute funds to in the form of a deduction to their net earnings, for eg charitable organisations via a payroll giving deduction. The third party will advise you what value to enter in this field. This value will populate to the payment file and therefore be displayed on the bank statement of the party receiving the funds. Maximum characters allowed in this field are 12.
• Pay Into Account: Choose from adding the (a) remaining balance, (b) a fixed dollar amount or (c) a fixed percentage amount. If only one bank account is to be set up, the value here must be "Remaining balance". 

Option 2: Pay employee manually

This option should be chosen where payment is to be made to a bank account but should not be included in the bank file. Once you click "Add", select "Manual Deposit" from the 'Account Type' drop down list. 

• Name: The employee's first name and surname will pre-populate in this field. You can edit this value however if the account name is different.
• Account Number:  Enter the employee's account number here. The account number of 15 or 16 digits (consist of 2 digit bank code, 4 digit branch code, 7 digit account number and 2 or 3 suffix number) should be entered here.
• Pay Into Account: Choose from adding the (a) remaining balance, (b) a fixed dollar amount or (c) a fixed percentage amount. If only bank account is to be set up, the value here must be "Remaining balance".

Option 3: Pay employee by cheque or cash

If this is the method chosen to pay employee(s), a 'bank account' still needs to be added against the employee file. Once you click "Add", select "Cash or Cheque" from the 'Account Type' drop down list.
 

• Name: The employee's first name and surname will pre-populate in this field. 
• Pay Into Account: Choose from adding the (a) remaining balance, (b) a fixed dollar amount or (c) a fixed percentage amount. If only bank account is to be set up, the value here must be "Remaining balance".

You can set up a combination of methods as to how the employee's net earnings are distributed.  

 Other Bank Account Settings

1. Employee can edit: You will notice this option when setting up bank accounts (N.B. this option is not included in the "Car or Cheque" option). If this is ticked, you are giving employees permission to edit the bank account set up through their employee portal. This is only activated if they have permission to edit bank account details.
2. Delete this account: If this term is in red, you are able to delete the bank account. If it is grey, you cannot. Common reasons for this is (a) it is the only bank account attached to the employee and so another bank account will need to be added before it can be deleted or (b) the bank account is attached to a recurring deduction and so cannot be deleted until the deduction expires or is deleted.

 If you have any questions or feedback, please let us know via support@nzpayroll.co.nz