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How to set up e-Banking in Sage 50 Payroll

In Sage 50 by David

Reading Time: 4 minutes

e-Banking in Sage 50 Payroll makes paying your employees much easier. In this blog, we walk you through how to set up e-Banking in your Sage 50 Payroll system. If you would prefer to watch a video on how to set up e-Banking, you can watch one below.

Sage 50 Payroll e-Banking set up

In Sage 50 Payroll head to Company > Settings and click on the Bank tab. At the bottom of the screen select Enable e-Banking. Once you’ve checked the enable e-Banking box, you need to download the relevant component from the website. Click ‘Change or Update Component’ to do this.

Sage 50 Payroll Screenshot-One-Company-Settings

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

Sage 50 Payroll Screenshot-eBanking-Sage

Next, find the relevant plug-in that is relevant for your e-Banking set-up and click Download Plug-in. Once the file has downloaded, choose to open the file which then prompts Sage e-Banking to start installing your plug-in. Follow the simple steps through the installation process.

Sage 50 Payroll Screenshot-eBanking-Three-Sage-Installing

Please note: Some plug-ins require Sage 50 Payroll to be closed whilst you go through the installation process. If you receive an error during installation, try closing Sage 50 Payroll and clicking retry.

Once the plug-in has installed, head back into Sage 50 Payroll and return to Company > Settings and click on the Bank tab. This time, select the component you have just installed from the drop-down component list. Next, click the config button next to the component you have selected.

Sage 50 Payroll Screenshot-eBanking-Four-Company-Settings

Within the config, you are telling the software where you would like to save the payment file and what type of file extension you would like to use. If you would like to change the common directory select the browse button in that section and select the folder you wish to use, please make sure that it is a secure location. You may also need to speak to your bank about what file extension you will need and if a file identifier is needed.

Sage 50 Payroll eBanking-Screenshot-Documents

Once you’ve completed this click OK and head back to the Bank tab. From here you should start populating your bank details information in the fields provided, including your account name, account number and sort code. BACS reference is optional, you can leave it blank if you need to. Once completed, click OK. The company has now been set up to produce the e-Banking file, next we need to set up the employees.

Sage 50 Payroll eBanking-Screenshot-Sort-Code

Select Employee from the left-hand sidebar, select Employee Record and select the Banking tab. Within here you need to populate the account name, account number and sort code.

Sage 50 Payroll eBanking-Screenshot-Employee-Record

Finally, we need to head to the Employment tab and make sure the Payment Method field has BACS selected as the payment method and click Save. 

Sage 50 Payroll eBanking-Screenshot-Payment-Method

Sage 50 Payroll e-Banking FAQs

Q: What can I use e-Banking with?
A:
A list of compatible bank accounts can be found via the following link

Q: I want to use e-banking but it is greyed out. I have full access rights.
A:
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 employees wage into two different bank accounts?
A:
In 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!
A:
There is 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 be saved instead of browsing it every time?
A:
Yes! This can be set under Company > Settings > Bank > E-banking > Config.  If you browse to the directory path you want your file to be saved in the top Common Directory box your file will default to this location (you can still amend when saving).

Q: Can I pay employees directly through payroll without logging on and uploading a file?
A:
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.

Sage 50 Payroll e-Banking is now set up!

Your e-Banking is now set up! If you have any questions, hit any issues or would like to talk about Sage 50 Payroll training, please get in touch, or call us on 01824 780000. If there are any other Sage 50 Payroll processes you would like us to cover in future blogs, please reach out using the contact methods mentioned previously, or email us at info@itassolutions.co.uk

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