Electronic Funds Transfer (EFT) Overview
The EFT feature (also referred to as Direct Deposit) allows you pay your employees electronically by transferring funds directly to their bank account. eNETEmployer accomplishes this by producing an electronic file ("EFT") that you can upload to your company's bank for payment processing. The EFT file contains both your company's bank details (the debiting bank), and each employee's individual bank account information.
- Simple and Efficient - This EFT method replaces the more traditional means of disbursing payments to employees such as cheques or cash. Electronic payments save the time of signing and manual deploying printed cheques. It also provides improved security by eliminating the risks associated with lost or misdirected cheques. EFT eliminates excess paper and helps you automate your employee payments.
- File Format - The EFT file is a collection of net pay amounts formatted in the Canadian Payments Association CPA 005 1464 byte files for Electronic Funds Transfers (EFT). This file format is widely accepted by all major banks and credit unions in Canada.
- Requirements - There are two main requirements in order to use this feature:
- Canadian Bank or Financial Institution - Both the debiting bank and the employee(s) bank must be Canadian, and able to support the CPA file format (see below for file format details).
- EFT Capability - The debiting bank account must be able to support EFT, and have an assigned Originator ID and Bank Data Centre. Commercial bank accounts typically provide this feature, while most small-business bank accounts do not. You can speak with your banking representative to see if your account is EFT-ready.
- Supports Multiple Employee Accounts - Employee payments may be deposited in up to three bank accounts. When producing EFT's, eNETEmployer will satisfy the amounts specified for Bank 1, then Bank 2, then Bank 3.