Process direct deposit payments in Sage Business Cloud Payroll (Canada)

What is direct deposit?

Direct deposit is an electronic transfer of money from one bank account to another.

Use direct deposit to pay your employees from Sage Payroll, replacing the need to issue payments by paper cheque, cash, or manual funds transfer through your bank.

Complete a one-time set up to safely transfer money to your employees' bank accounts via VoPay, our trusted payment partner, each time you complete a pay run.

VoPay connects to the bank account you use to pay your employees.

Your VoPay account application is checked by their compliance team to ensure they comply with Canadian regulatory policies such as Know Your Customer (KYC) and Anti-Money Laundering (AML).

How to process direct deposit payments

Before you begin

To pay your employees via direct deposit, you need to:

Create an account with VoPay and connect your bank account.
Change the payment type for your employees and add their bank details.
Process the payments at the end of your pay run.

If you have not yet set up direct deposit for your company, read our Set up direct deposit in Sage Payroll guide.

If you have not yet set up your employees to be paid by direct deposit read our Set up employees for direct deposit guide.

📎NOTE: To allow time to process the direct deposit transfers, payments must be submitted at least two business days before the employee's pay date.

VoPay will take payment from your bank account two days prior to the payment date to ensure the funds are available to cover the direct deposit payments.

You must ensure sufficient funds are in your bank account to cover the direct deposit payments.

Select Pay runs.
Select Process pay run.
When the pay run is complete, select Go to Payments.
If you have any employees paid by direct deposit, you will see a banner confirming the deadline for the payment.
Select the pay run you want, then the Direct deposit tab.
Select the check box for the pay date the employees will be paid on, then Submit payments.
A confirm payment message shows the employees and amounts paid via direct deposit.
Select Submit payments to process the payments through your bank and VoPay.
A dialogue will show the progress of the submission.
When the payments have been submitted, you will receive the prompt:
```
Direct deposit payment successful
The payment for <Date> has been successful.
```

📎NOTE: If your payday falls on a non-banking day, then your employees will be paid on the next banking day.

How to fix problems when submitting

If there was an issue submitting or processing the direct deposit payments, you will see a warning icon on the Direct deposit tab and a status of Failed in the Payments table.

Select View to find details of the error reason and steps to resolve the error.

A list of the errors and fixes can be found below.

Error	Resolution
Error 4000 Cancel scheduled funding failed	Contact Sage support to process a cancellation.
Error 4001 Cancel scheduled payment failed	Contact Sage support to process a cancellation.
Error 5001 Micro Deposit failed	The bank verification transfer failed. Check employee bank details, then try again.
Error 5002 Micro Deposit Refund request failed	The bank account verification refund failed. Contact Sage support to request a new refund.
Error 5003 Micro Deposit Refund failed	The bank account verification refund failed. Contact Sage support to request a new refund.
Error 5004 Micro Refund to Default Account Failed	The bank account verification refund failed. Contact Sage support to request a new refund.
Error 6000 Refund failed	Refund for failed payment(s) was unsuccessful. Contact Sage support to request a new refund.
Error 8000 The provider returned an internal server error	Our payment provider, VoPay, returned an internal server error. Try to submit the failed payments again.
Error 8001 The provider returned busy, please try again	Our payment provider, VoPay, returned a busy status. This may be due to a large number of users accessing their site. Try to submit the failed payments again.
Error 8002 An unexpected error occurred in the connector, please contact support	There was a problem connecting to VoPay. If the issue persists, contact Sage Support.