After you complete a pay run, you can pay your employees in several different ways - cash, cheque or e-payment. If you want to pay your employees by direct deposit, you can set up e-payments to pay them electronically.

Before you create e-payments

There are some important things to be aware of when processing e-payments:

  • You need to create an e-payments account in Sage Payroll. This is linked to our payment provider,

  • You need to verify your bank account details.

  • E-payments must be processed at least 4 business days before the date you want your employees to be paid.

  • To send e-payments to your employees, you need their email address.

Set up your employees

To pay an employee using e-Payments, you need to first need to make sure their payment details are set up correctly.

1. From their employee record, select the Payment tab.

2. From the Method of Payment section, set the Payment Type as e-Payments.

3. Check the Payee email and Payee name are correct, then Save your changes.

Repeat these steps for each employee you want to pay with E-payments.

Pay your employees

After you have completed a pay run for your employees, you can pay them. If you need help completing a pay run, see our Process a pay run article

Remember, if you are paying your employees e-payments, you need to process the payments at least 4 business days before their pay date.

For example:

  • You want to pay your employees by e-payments on Friday morning, September 16th.

  • You must submit your e-payments by Monday, September 12th at 8:00pm EST.

Using e-payments for the first time

You need to set up the e-Payments feature the first time you use it.

Complete the steps below, or watch our setting e-payments video:

  1. After completing your pay run, select Go to Payments.

  2. From the top-left of the screen, select Set Up E-Payments.

  3. Create an E-Payments account in Sage Payroll. Enter the Business email for your company, and your First Name and Last Name, then Create Account.

  4. Select Complete E-Payments Setup. This links your e-Payments account in Sage Payroll to our payment provider

    You are then redirected to to complete the setup.

  5. Select Please complete your profile by adding a bank account to add the bank account employees will be paid from.

  6. Select the type of bank account you will be sending money from - Business or Personal.
    Check the box when you have read and accepted the terms and conditions.

  7. For added security, a verification code is sent to you.
    Enter your phone number and select to receive the code via text message or phone call.

  8. Enter the code and select Verify.

    You can verify your bank account instantly by entering your online banking credentials or manually by entering your routing and account numbers.

    Instant verification

    📎NOTE: You will need your online banking login details for instant verification.
    The credentials are sent directly to your bank and not stored when entered.

    You can verify your bank account instantly by entering your online banking credentials or manually by entering your routing and account numbers

  1. Select Instant Verification.

  2. Enter the name of your bank, then select Submit.

    A popup window confirms how uses Plaid to encrypt the data you’ve chosen to share.

  3. To confirm you agree with the Plaid end-user privacy policy, select Continue.

  4. Enter your online banking credentials as requested, then select Submit.

    📌 TIP: If your bank uses multi-factor authentication, you may need to enter your phone number to receive a security code from your bank.

    1. Enter your phone number and select Continue.

    2. When you have entered the code, select Submit.

      A success prompt confirms you have linked to

    5. Select Continue to complete the process.

    Manual verification

    📎 NOTE: You will need your routing and account numbers for manual verification.
    You can find these at the bottom of a cheque in your paper chequebook.

  1. Select Manual verification.

  2. Enter your bank's Routing number and account number. You will need to confirm the account number again.

  3. Select the Account type - Personal checking, Personal savings or Business account, then select Submit.
    Your bank account has now been added and you will receive an email to verify your bank.
    As part of the verification, will make 2 small deposits and 1 withdrawal to offset the deposits.

  4. When you see the transactions in your bank account, typically this is the next working day, open the email and select Verify bank.

  5. Enter the amounts for the micro-deposits, as they appear on your bank account, then select Submit.

    Your bank account has been successfully verified. When you return to the setup E-payments screen in Sage HR or Payroll, you'll see the message "E-payments account set up successfully".

Submitting e-payments

Once you've set up e-payments and completed a pay run, you can send e-payments to your employees.

  1. From the Payments tab, select the appropriate pay run.

  2. Select the relevant employees, then Submit Payments.

  3. If required, you can generate a pay statement for your employee at this point.

  4. Check the information is correct, then select Submit Payment.

  5. To complete the process, select Submit payments again.

The Status column for the affected employees then changes to Submitted.

To help your employees with the steps to receive e-payments, access our Employee guide to receiving e-payments article.

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