The Bank Details Tab enables you to record one or more bank accounts for the employee’s pay to be paid into when using either Electronic Pay or Cheque payment methods. The pay method is chosen under the Pay Details Tab in the Employee’s Details.
Click on the [Bank Details] Tab to show a list of bank accounts for the employee.
To add a new account, click on the [Add] button.
If the account is going to receive normal pay transfers, ensure that the selector for ‘Normal Pay’ is highlighted. If the account is going to receive transfers of salary sacrificed fringe benefits amounts, highlight (click on) the selector for Fringe Benefit. See below for more information.
Enter the details of the account. The BSB number must in the form XXX-XXX, where X is a number.
For one account only, the Default Account and Allocate options are disabled. They will be activated for multiple accounts. For more information, see Multiple Bank Accounts below.
Click on [OK].
Once an account is listed, you can edit the details by clicking on the account name, and on the [Edit] button.
Make the required changes and click [OK].
If you have clicked on [Modify Employee] to do this process, when you have finished all changes to the Pay Details information, click on the [Save] button.
Multiple Bank Accounts
Paying an employee electronically requires you to record at least one bank account to pay into. Wages Manager gives the option for an employee to split their wages into multiple bank accounts, one of which must be the default account.
Let’s say an employee wishes to have the majority of their pay paid into their normal account but would like $50 of their wage put into a savings account. By providing the details of both accounts, Wages Manager can distribute the wage into these accounts.
In the Bank Details section, click on [Add] to set up a new account.
Record the details including: Bank Name, Account Name, BSB Number and Account Number.
The first bank account recorded will be the Default Account but when setting up multiple accounts, the Default Account check box will be enabled. Click on the checkbox for the account you wish to be the default. Any amounts not allocated to other accounts will be paid into the Default Account.
For non-Default accounts you also need to specify how much of the wage is to be allocated to this account. Record the Allocate amount and choose Dollars or Percent from the drop-down list.
Click [OK] to finish.
Bank Accounts for Fringe Benefits Transfers
When an employee sacrifices a portion of their pay to receive fringe benefits, it is common to transfer an amount per pay into a bank account that is then used to pay the fringe benefits.
Some employers transfer this into a separate account for each employee whereas others transfer the sacrificed pay for all employees into one combined account.
Note: If you use one combined account it will be necessary to record the account details in Options > Bank Details before selecting this option for any employees.
When the salary sacrificed amount is being transferred into a ‘fringe benefits’ account, click on the ‘Use for Fringe Benefit’ option so that it is highlighted.
If one combined ‘employer’ account is used for all employees, click in the check box for ‘Use Combined Account’. (This will select the Combined Employee Fringe Benefit Bank Account Details’ recorded in Options > Bank Details.)
If a unique account is used for each employee, leave the ‘Use Combined Account’ unchecked and add the details of the account.
To enable reporting of the balance in the employee’s fringe benefit account (i.e. transfers in from pays – fringe benefits paid) record the date and the employee’s balance prior to the first pay in the Opening Balance box.