Balance file options:

1. If the payroll funds are being deducted automatically from the company account then select 'Create Balanced File'. (This is the most common option). This option will create a debit and credit file that will balance. 

2. If the bank wants the company record included as part of the direct deposit file but wants to manually add the total amount and then select the Include Company Record with Zero Amount option. Note that this option is practical only if all of the payees are paid from the same account.

3. If the bank only wants the file to contain the payees records with no balancing record on the company side, select the omit company record option. The bank will then manually add whatever data is necessary to deduct funds from the company's account. Note that this option is practical only if all of the payees are paid from the same account unless you provide separate instructions to the bank.

Additional File Options:

The format for Processing by Kotapay: Check this option if the direct deposit file is to be processed by Kotapay. See Kotapay.

Include Social Security Number: The employee or Form 1099 recipient social security number is normally included as part of each record in the direct deposit file. If you remove the check from this option the social security number will be replaced by zeros. An additional option to only have the last four digits of the social security number included in the direct deposit file is required by some banks.

Remove Dashes from Account Numbers: Bank account numbers may contain dashes. Checking this option will automatically remove those dashes in the direct deposit file.

Company Name (Batch Record Fields 3 and 4):

Legal Name Field 3:  The company/batch record contains the company name. To use the legal name of the company, select the option to 'use the company's legal name or use the option "use the company's doing business as' name. 

Discretionary Data Field 4: The company/batch record is normally blank but it can contain part of the company name if the company name is longer than 16 characters. Data entered here will be inserted into this field, overwriting that portion of the company name that is longer than 16 characters. This option is not available if the option to format the file for processing by Kotapay is checked.

Company Identification (Detail Record, Field 7):

• Use the company's federal EIN.
• Use other data.

Company Identification (Company/Batch Record, Field 5):

Field 5 :  The company/batch record normally contains a "1" followed by the company's Federal EIN. Other options are available but are normally used only for companies that don't have a Federal EIN (typically for companies outside of the United States).

Entry Description (Company/Batch Record Field 7):

These values are displayed in the payee statement when the payment is posted. There is rarely a need to change them from the default values. The entry descriptions are limited to 10 characters. Only uppercase characters are permitted. Note that if the file is formatted for transmission by Kotapay the entry descriptions are preset and cannot be altered.

See Company Setup - Direct Deposit for more information