Net Pay Distribution (NPD)

The Net Pay Distribution (NPD) transaction allows you to designate where an employee’s pay check is distributed. It also allows you to initiate or terminate automatic direct deposit of an eligible employee's paycheck into one or more a checking or savings accounts. In addition, you can determine how the pay information is distributed to an employee (with a check to home or work location, direct deposit stub mailed, or emailed).

Note: An Employee can also update their direct deposit information via Pay Landing > Manage Direct Deposit carousel tile. Employees should refer to the “Net Pay Distribution” topic in the Employee User Guide for more information.

Sites have the option to validate the payroll routing numbers that are entered on the Net Pay Distribution transaction. The ABA Routing Number validation can be enabled by setting the ABA_ROUTING_NUMBER_VALIDATION application parameter via the Application Parameters (APPCTRL) reference page. For additional information on this setting, please refer to the Application Parameters (APPCTRL) section of this user guide.

One Primary Account, the account into which all unassigned pay is to be deposited, can be specified by selecting the Primary Account field on Net Pay Distribution. Only one Primary Account can exist for any given date. Secondary accounts are each assigned a Priority Order. The Priority Order determines the hierarchy by which the system allocates pay if the Paycheck does not contain enough Net Pay to distribute to all of the designated accounts. The account with a Priority Order of 1 has the highest priority. No two accounts can share the same priority order for an employee with overlapping date ranges.

Important InformationImportant Information

When entering a Secondary Direct Deposit account, either the Primary Account must be approved before a Secondary Account can be submitted or the Priority Order of the Primary Account must be set to 0.

Each secondary account is also assigned either a Distribution Amount (a fixed dollar amount per Pay Period) or a Distribution Percent. The Distribution Percent for each individual account cannot exceed 100%.  Enter the percentage as a decimal, for instance 90% should be entered as .90.

A secondary account can be assigned a Deduction Frequency. Accounts with a Deduction Frequency only receive direct deposits in Pay Periods linked to the Deduction Frequency code entered. This functionality allows for flexible deposit schedules.  For example, if an employee is bi-weekly and the Deduction Frequency is monthly, the employee will be paid out once a month to this secondary account.  The Primary account will be paid every pay period.

Deposits can be removed using the Delete functionality. An NPD transaction can be created using the Create Net Pay Distribution link from the Deduction Management (DEDM) activity folder. The Modify Net Pay Distribution link is used to modify existing accounts and add new NPD transactions. Accounts can be deleted from the pre-populated NPD transaction by selecting the relevant transaction line and selecting Delete before submission.

Field InformationField Information

This transaction captures the following information:

  • Accounting information, such as ABA Routing Number, Account Number, Nickname, Account Type, effective dates, Prenote Issue Date, and Mail Check Indicator.

  • Accounting distribution information - The Primary Account, the account into which all unassigned pay is to be deposited, should be marked by selecting the Primary Account check box. Only one Primary Account can exist for any given date. Secondary accounts should each be assigned a Priority Order. The Priority Order determines the hierarchy by which the system allocates pay if the Paycheck does not contain enough Net Pay to distribute to all of the designated accounts. The account with a Priority Order of 1 has the highest priority. No two accounts can share the same priority order for an employee with overlapping date ranges. Each secondary account is assigned either a Distribution Amount (a fixed dollar amount per Pay Period) or a Distribution Percent. The Distribution Percent for each individual account cannot exceed 100%. Enter the percentage as a decimal, for instance 90% should be entered as .90. A secondary account can be assigned a Deduction Frequency. Accounts with a Deduction Frequency only receive direct deposits in Pay Periods linked to the Deduction Frequency code entered. This functionality allows for flexible deposit schedules. For example, if an employee is bi-weekly and the Deduction Frequency is monthly, the employee will be paid out once a month to this secondary account. The Primary account will be paid every pay period.

  • Travel bank account information - This is an employee Travel Bank Account that is used for travel payment processing such as disbursing the travel advances, and reimbursements.

The Net Pay Distribution transaction can be created in the following ways:

  • Select the Create action on the Transaction Catalog.

  • Select the Create Net Pay Distribution row-level action on the Net Pay Distribution tab of the Deduction Management (DEDM) activity folder.

  • Select the Modify Net Pay Distribution row-level action on the Net Pay Distribution tab of the Deduction Management (DEDM) activity folder.

  • The Check Print batch job generates separate XML files for the warrants and the direct deposit stubs. The Check Print batch job is further modified to determine the employees whose checks should be included in the XML file.

  • In order to support the ability to suppress direct deposit statements from being printed, the Pay Stub Routing CVL should be set to Direct Dep eStub on the Net Pay Distribution (NPD) transaction. This option is used to indicate that the employees’ direct deposit statement should not be included in the XML generated by the Check Print job. The value of Direct Dep eStub only be selected if the ABA Routing Number and Account Number fields have been populated.

    Note: The ABA Routing Number and Account Number fields here should not be considered under the Travel Bank Account section.

  • The Check Print job generates a statistics file for the entire employee population for use in reconciling versus bank files. This statistic file needs to include additional values for the number and amounts associated with paperless direct deposit statements that have been suppressed form the XML files. The statistics flat files will include warrants or direct deposit stubs sent to the vendor and the suppressed direct deposit eStubs. In order to update the direct deposit statistics file, columns are used on the R_INT_RECON database table to record the number and dollar amounts of employees’ checks, which were suppressed from the direct deposit XML file.

    Note: Entry into the Interface Reconciliation table and the generation of the statistic file will happen only when the following job parameters are updated:

  • The Exclude Employees eStub parameter instructs the program to exclude the ePayStub employees from getting printed in the Check Print xml, also ensures if entries are required to be updated as part of the Interface Reconciliation table (R_INT_RECON). Valid values Y or N. The Valid Department job parameter ensures the processed CHECK's and EFT's transactions to be inserted in the Interface Reconciliation table (R_INT_RECON).

  • The paperless statements that have not been included in the EFT XML file will be counted and the summary dollar amounts stored on the R_INT_RECON table. The TRL_AMT_1 and TRL_AMT_2 field will be created to store the number of suppressed checks and the total net pay amount of those checks respectively.

TasksTasks

Refer to the following topics that contains the instruction on the tasks that can be performed using the Net Pay Distribution (NPD) transaction: