Child support direct deposit overview

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Important reminder!

Licenses for Payroll CS, Trial Balance CS, and Write-Up CS (but not Engagement CS) permanently expired on March 1, 2017.

For details, see CSA license expiration 2017 – frequently asked questions.

Some processes documented in the Help & How-To Center are no longer applicable, due to the discontinuation of these CSA modules.

Setting up the deduction item

  1. Choose Setup > System Configuration > Deduction Items.
  2. Highlight the Child Support deduction, press the F3 key, and then choose Copy Deduction Item.
  3. Enter a new Description and Report description, for example "Child Support DD."
  4. Click the Calculations tab, and make sure the Child support checkbox is marked.
  5. Mark the Direct deposit payment checkbox.
  6. Click Enter to save the information and then click Cancel to return to Browse mode.
  7. Close the Deduction Items dialog.

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Setting up direct deposit information

If the client is already using direct deposit, this information is already set up in the Client Properties dialog and the Checkbook dialog. If not, set up the direct deposit information as you would for any direct deposit client. For more information, please refer to the About the Direct Deposit module topic.

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Setting up automatic handwritten vendor check creation for child support payments

  1. Choose File > Client Properties and click the Direct Deposit tab.
  2. Mark the Create check record for child support direct deposit checkbox.
  3. In the check number field, enter the check number you want to use for all child support direct deposit payments. If you leave this field blank, the application will automatically default to check number 100 for all direct deposit child support handwritten vendor checks.

When payroll checks are printed and the direct deposit file is created, the handwritten vendor check is automatically created in the checkbook specified in the Address and Accounts tab of the Vendors window.

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Setting up the disbursement unit as a vendor

You will need to set up the child support state disbursement unit for this client as a vendor.

  1. Choose Setup > Vendors and enter the information for the state disbursement unit as appropriate.
  2. Click the Direct Deposit tab and complete the fields using the information specified by your state.
  3. Set the vendor to Account status: Approved. Verification of the proper setup of the vendor will be handled later in the process.
  4. When all information has been entered, click the Enter button and then close the Vendors window.

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Setting up the employee for direct deposit child support

  1. Choose Setup > Employees.
  2. Click the Tax Withholdings and Deductions tab and add the direct deposit child support deduction item to the Tax Withholdings and Deductions grid.
  3. Click the Direct Deposit tab and enter the information regarding this case, including the case identification number, state and county, and the payment vendor. Be sure the status is set to Zero Balance Test.

    Note: This tab is available only if the deduction item has been specified as both a child support item and as a direct deposit payment

  4. Click OK to close the Deduction Item Properties dialog and then click the Enter button to save the deduction item information before closing the Employees window.

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Creating a zero balance test file

  1. Choose Utilities > Direct Deposit to open the Maintain Electronic Transaction Files dialog.
  2. Select the child support deduction file and choose Tasks > Child Support Zero Balance File. and click OK at the prompt when the file has been written.
  3. The status of the file is updated to Waiting. Once you receive notification from the bank/third party handling your direct deposit files that the test file is correct, choose Tasks > Update Account Status.
  4. Select the Approved status option and then click OK. The status now displays as Approved in the Direct Deposit tab of the Employees window.

Before a child support payment file can be created, the status for the direct deposit child support item must be approved within the Direct Deposit tab of the Deduction Item Properties dialog.

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Processing payroll and child support payments

You are now ready to enter and save payroll checks that include direct deposit child support amounts and have a child support payment file created.

The following must be true to create a child support payment file:

  • The status of the EPS file must be Approved.
  • All pertinent direct deposit information must be entered

If you attempt to save a check with information missing, you will receive a warning message stating that the direct deposit file will not be created. The check itself can still be printed, however no child support payment file will be created.

  1. Choose Tasks > Payroll Check Entry and process your payroll checks as usual.
  2. Choose File > Print Checks and print your checks as usual.
  3. Choose Utilities > Direct Deposit.
  4. In the Maintain Electronic Transaction Files dialog you will see an EPS file for child support. You may also see a payroll EPS file if any of your employees had amounts other than child support direct deposited.
  5. Create your ACH files as usual.
  6. Transmit the ACH file as usual.

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