General Consultant Discussion

Direct deposit (non-Sage) what is the normal turn around from the time PR data is submitted to the payroll service to the issuance of the funding and direct deposit? I'm trying to figure out if 5 days is a long, short or an average amount of time.

I typically see payroll processed on, say a Tuesday, funds withdrawn from the client bank account on Wednesday and the direct deposits in employee accounts on Friday.

Back in the day when I was doing it, the bank gave us the best ACH rate if we delivered the file two days ahead (Wednesday 2PM for Friday morning deposit). So if they want a day for processing, Tuesday to Friday would seem reasonable. But that is back in the dark (hair) ages. I just checked with a client and they have a four working day (Tuesday - Friday) lead time.

Our bank requires two days also.

We do direct deposit for our employees and as long as we have the file to the bank by 4:00 pm, the funds are available morning after next. A typical payroll run is 24 hours. That means that a payroll process initiated on Monday morning should have money in the employees accounts by Thursday. If the employer has issues in their processes, uber complex union rules, etc, I can see an additional day in the payroll processing cycle.

From what I'm reading 5 days is a a little longer than average, average looks like 4 and short would be 2 day turn around. I guess too it depends on the bank and not just the payroll service. The customer is using a small regional bank and a small bookkeeping service for their payroll. The extra time may be a capacity issue at either one. Thanks everyone.