How to Set up E-banking on Sage 50 Payroll?

How to Set up E-banking on Sage 50 Payroll

When E-Banking introduced in Sage 50 Payroll, it makes the work of employees much easier. With this article, let’s highlight how to set up E-banking on Sage Payroll System.

Sage 50 Payroll E-Banking setup process:

In Sage 50 Payroll first head up to Company>Settings and then click on the Bank Tab. At the Bottom side of the screen select Enable E-Banking. Now once you’ve checked the enable E-Banking, you need to download the relevant component from the website. Now Click “Change or update component” to do this.

Select the component that is relevant to you from the two options towards the bottom of the page.

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For the next step, try to find the relevant plug in that is relevant in terms of e-Banking set up and Download plug in. When the file is once downloaded, choose to open the file which prompts Sage e-banking to start installing plug in.

Follow the given simple steps through the installation process:

Note: Some plug-ins require Sage 50 Payroll to closed during the installation process. If you receive an error during installation, try closing Sage 50 Payroll and clicking Retry.

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Once the plug-in has installed, reopen Sage 50 Payroll and go to Company > Settings. Click the Bank tab and select the component you just installed from the drop-down list. Next, click the Config button next to the component you selected.

In the config, you are instructing the software where to save the payment file and what file extension to use. If you would like to change the default directory, click the browse button in that section and select the folder you wish to use. Please make sure that the folder is secure. You may also need to contact your bank to determine what file extension you will need and if a file identifier required.

After doing this, click OK to return to the Bank tab. From this point on, you should begin entering your bank’s account name, account number, and sort code in the designated fields. BACS reference not required; if necessary, you may leave it empty. Click OK when finished. Now that the business is ready to generate the e-Banking file, the personnel still need to set up.

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From the sidebar on the left, choose Employee, then Employee Record, and finally the Banking tab. The account name, account number, and sort code must entered here.

Lastly, we must pick BACS as the payment method in the Payment Method column and click Save by going to the Employment page.

Frequently Asked Questions (FAQs)

Q. What can I use e-Banking with?
Ans. A list of compatible bank accounts can found here.

Q. I want to use e-banking but it grayed out. I have full access rights. What should I do?
Ans. You need to enable e-banking first by going to Company > Settings > Bank and ticking “Enable e-banking”.

Q. How do I pay a percentage of an employee’s wage into two different bank accounts?
Ans. On the employee record, on the banking tab, you can add a second account. Click here for further help.

Q. The format my bank is requesting is not the same as what Sage has produced!
Ans. There are a number of different plug-ins that are available and sometimes a bank can have variations of the plugin. You can use the following link to look at the different formats available and make sure you select the right one: File formats for Payroll e-banking.

Q. Can I set the directory where I want my file to saved instead of browsing it every time?
Ans. Yes. This can set under Company > Settings > Bank > E-banking > Config. If you browse to the directory path you want your file to saved in the top Common Directory box, your file will default to this location (you can still amend it when saving).

Q. Can I pay employees directly through payroll without logging on and uploading a file?
Ans. Using the standard e-banking method is not possible. It is a manual process of saving the file and then uploading it to your bank. You can take a look at Sage Salary and Supplier Payments which automates this a bit more.

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