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Process for Changing Banks

Process for Changing Banks

Individual ITC's may supply slightly different instructions depending on the procedures of the ITC.  Therefore, these steps are intended to be general guidelines only.

Here are some steps and considerations to help guide you through the process of changing payroll banks:

1. Define New Bank Account

  • Bank accounts are defined and listed under the Core/Bank Account. Update this grid when using multiple bank accounts simultaneously.

  • The user has the ability to add start and stop dates for each bank account.  Any bank account that is listed as active may be selected from a drop down when Processing Payments (Checks/Direct Deposits).

  • User needs to define one bank account as default

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2. Create or Update ACH Source

This option is used to enter all banking institution information in order for the direct deposit transmission process to be completed. For more information regarding ACH Source records, click here.

Option 1: Create an Additional ACH Source Record with New Bank Account Information

This option will allow the existing ACH Source record (with the old bank information) to be retained and a new ACH Source record (with the new bank information) to be created.

  1. Go to the Core menu and select the ACH Source option.

  2. Edit the existing ACH Source and change the ACH Transfer Code to re-sequence to a higher number (for example, 002).

    1. Renumbering is suggested due to the system listing the entry with the lowest ACH Transfer Code first when creating Pay Destinations>ACH Source Code and as the ACH Source when creating ACH and HSA Submission files.

  3. Click on the Create icon to add a new ACH source record.

    1. Select the appropriate Transfer Type from the drop down - PayrollACHTransfer or HealthSavingsAccountACH

    2. In the ACH Transfer Code, enter 001.

    3. Enter all the appropriate ACH Header Record Information values, Batch and Detail Record Information values, Direct Deposit Clearing values, and Payroll Debit Clearance values.

    4. Click Save.

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  1. All Pay Distributions will need to be updated so each record reflects the correct ACH Source Code.

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The Pay Distribution records can be updated by creating a load file and importing the file using Mass Load or edited and updated individually. To use Mass Load, the following column headings are required in the load file:

  • employeeNumber

  • code (this field cannot be updated to be something different in Mass Load or using Mass Change, has to be manually updated)

  • type

    • DIRDEP

    • CHECK

  • rateType

    • Percent (case sensitive)

    • Fixed (case sensitive)

  • rate

  • transferType

    • PayrollACHTransfer

  • transferCode

    • 001

Option 2: Edit the Existing ACH Source Record Which Will Override the Current Bank Account Information

This option will allow the existing ACH Source record to be updated with the new bank information - without creating a new record. This step overrides the information record and does not preserve the existing information. An Audit Report can be run to view any changes.

  1. Go to the Core menu and select the ACH Source option and click Edit.

  2. Enter all the appropriate ACH Header Record Information values, Batch and Detail Record Information values, Direct Deposit Clearing values, and Payroll Debit Clearance values.

  3. Click Save.

Additional Recommendations

  • Create a test ACH submission file and coordinate with the appropriate contact at the new financial institution to confirm successful upload before the next payroll.

  • Update the file layout and field definitions for your Pay Rec Import and Pay Rec Extract under the Automatic Payment Reconciliation program. Click here for additional information

  • Inform any third-party vendors that require to have this information on file.