How to use Direct Debiting

Updated: November 2025

Knowing how to use Direct Debiting is the key to keeping your payroll running smoothly, and keeping your selected pay day as planned. If you still need to activate Direct Debiting on your account, follow this link.

Here is what you should know about using Direct Debiting effectively:

• Different users could see different buttons based on their access
• How Direct Debit pay funding works
• Setting up multiple Direct Debit pays in advance

Different Users Could See Different Buttons

After Direct Debiting has been activated on your account, you will notice that the 'Finalise Pay' button on your Dashboard has changed to a 'Confirm and Debit' button for Direct Debit Authorised users.

What this means is that your payroll admin needs to be added as a Direct Debit Authorised user for them to be able to see and press the 'Confirm and Debit' button. For a quick reminder on what a user is, follow this link.

This is where to update Direct Debit Authorised user status:

From the Dashboard, go to Settings and select 'Direct Debiting' from the dropdown menu. This will take you to the Direct Debiting Autorisation page where you set up Direct Debiting for this payroll account.

Scroll down the page.

At the bottom of the page you will see the list of users added to this payroll account.

1. The "Grey" user is the only one who can add additional users from this list  by toggling them on.
2. Update and Save this setting.

When To Fund Direct Debits

Press this 'Confirm and Debit' button by 6 pm on the 'You Deposit' date to set the Direct Debit up for this pay. The funds will be taken from the nominated bank account on the 'You Deposit' green box date as per your payment selection.

For example:

• If you have 2-day processing for this pay run, the funds should be deducted from your bank account 3 working days before the pay day as the funds need to be in our account for 2 working days before the pay day.
  
• If you have 1-day processing for this pay run, the funds will be deducted from your bank account 2 working days before the pay day as the funds need to be in our account for a full working day before the pay day.
  

• Direct Debit funds are not received into the Thankyou Payroll Trust account until the morning after the Direct Debit is processed. As we process pays the night before the pay day your pay would be unfunded if you activate your Direct Debit after 6pm on a one day plan or during the day prior to your pay day.
  
  
•  365 banking is not real-time banking. Delays in communication of Direct Debit Dishonour payments has resulted in Kiwibank (38), ASB (12) and ANZ (01 or 06) clients requiring Direct Debits to process on a two day plan. 

Confirm and Debit Cut-off Time

• What if I press the 'Confirm and Debit' button after the 6 pm deadline? You will see a pop-up message telling you what to do to fund the pay. Follow the instructions on the pop-up.

Direct Debit Activated for Fees

If you have set up Direct Debiting for fees, you need to do nothing. We will email you on the 10th of the month to advise that we will debit the fees amount on the 20th.

Setting Up Multiple Direct Debit Pays In Advance

Direct Debit pays can be set up in advance which is a useful feature when you are taking some time away from work. However, to have pays run as expected you need to be aware of the Direct Debit pay funding order.

Golden Rule for Direct Debit Funding:  Pays are funded in numerical order, from the lowest number on the dashboard to the highest numbered pay. That means that the lowest numbered pay will remain open until fully funded before the next pay number up will process. To explain this further (with examples) we have created a dedicated article. Follow this link.

That is it! You now know how Direct Debiting works. Just in time to make this feature work for you.