ACH Payroll Support
Important ACH Payroll Requirement Effective March 20, 2026
Beginning March 20, 2026, Nacha is updating the rules that govern ACH payroll transactions.
If you use Business Digital Banking (BDB) to originate ACH credits for employee compensation — including wages, salaries, or benefit contributions such as HSA or FSA — you must update your ACH settings.
What's Changing
The Company Entry Description field for all payroll-related ACH credits must include: PAYROLL (all caps)
This requirement helps financial institutions more easily identify payroll deposits and reduce payroll-related fraud.
To avoid any interruption to ACH processing services, please be sure to complete this update.
What You Need to Do
- Review and update your ACH templates in BDB or payroll system settings.
- Ensure all payroll payments include PAYROLL in the Company Entry Description field.
Formatting Details
- The Company Entry Description field allows up to 10 characters.
- The first seven characters must be “PAYROLL.”
- The remaining three characters may be customized, if needed.
Examples:
- PAYROLL
- PAYROLLFEB
- PAYROLLHSA