Save time and money when doing your payroll accounting
When entering payroll accounting information for new employees, or when switching a current employee’s bank information, it’s a good idea to run a pre-note. Processing payroll with a pre-note will produce a live check for the payroll run. The information is then sent to the appropriate bank. This allows them to verify account and routing numbers before money is attached to the account. Invalid pre-notes are returned a few days after the file is sent, so that corrections can be made.
It is important to utilize the pre-note function so there is no delay in funding. This is so employees receive their direct deposits when they need it. Without running a pre-note, it could take up to 5 business days, after the payroll check date, for any errors to be reported. Not only could this result in some pretty unhappy employees, but it also will leave the employee at risk. If an employee’s deposit is not made on a timely manner it can cause an overdraft of their account, overdraft fees, and scheduled payments left with no funds to pay, which could result in even more fees!
By taking one more preventative step and running a pre-note, you can save you (and your employees) time and money—and all the headaches!