Split Wages between two bank accounts

Jennifer Stan

An employee wants to have part of their fortnightly wage paid into one bank account and the remainder into another bank account.  How can I do this.  I entered the details of both bank accounts in the employee setup.

Charley

Hi Jen, that's really a banking thing, not a payroll thing. The accounting package will show which bank account it came out of, it makes no difference into which account it went or how many it's just a payroll transaction

Jennifer Stan

Hi Charles, thankyou for your reply but what is the purpose of entering two lots of banking details in the employee setup? My example is I pay $2000 for and employee wage and $1500 is paid to them and $500 is paid into another bank account for their mortgage on another date.  The bank reconciliation will not be correct on a given date if either of the payments fall on either side of the  date the bank is reconciled.

Charley

OK I see your problem; you need to set up the mortgage as a deduction from net wage payable to XYZ Bank (or is it Salary Sacrifice) so that when you pay the wage the 1500 goes to the employee and then on the date the mortgage is due (though why cannot it happen on the same date, just needs to be set up with the bank) you go through pay payroll liabilities, tick the box for XYZ Bank and pay the mortgage. You can call me on 02 66834083 and I can run you through the setup if you like.

Janos

Hi Jennifer,
You didn't say what software you're using. If it is Reckon Accounts, then go to your employee's profile, select the "payroll and Compensation Info" and on the window that opens click the "Direct Deposit" button. Now in the window you can select the radio button: "Use 2 Accounts" and then enter the bank account details of the mortgage repayments account. Payroll will now create two deposits for the employee.
This of course assumes that you pay online by sending the bank an "ABA" file.
Cheers,
Janos

Sally McIntosh, Accredited Consultant

Hi Jennifer,

As previously mentioned you can split the amount in the bank details area.

What you also need to do is set up Online Banking in Reckon which will enable you to upload an ABA file to the bank which will have all the details in there.

If you would like further information or help to set this up, please feel free to email me directly.

Kind regards,

Sally McIntosh (sally@samsolutions.com.au)