How to Setup Prenote & Run a Prenote Payroll

 Roles and responsibilities

Role	Responsible for
Implementation Specialist	Turning on Pre-Note All for new clients, setting pre-note days on pay groups, and running the conversion pre-note payroll
Payroll Specialist	Pre-noting new or changed accounts for live clients and checking the Direct Deposit Register before processing
Service Bureau admin	Service Bureau Force Pre-Note setting (applies to all clients)
Implementation Manager	Approving any override that sets an account to Active without a pre-note

 

Before you start

• Client is set up in isolved, with access to Client Management > Client Maintenance
• Employee banking details have been received through secure channels. Never send them in plain email.
• You know which pre-note period the client wants: the standard 10 days or a shorter override
• For a new client: you know whether prior balances are fully imported and whether the client has prior-year history
• If the payroll run schedule is already generated: you know whether it uses the standard 10 days, because changing the days means rebuilding the schedule

Procedure

A. Turn on pre-notes

Pick the level that fits the request.

Level	Path in isolved	Effect
Client	Client Management > Client Maintenance > Legal Services > check Pre-Note All. You can also do this in the New Client Wizard.	New direct deposit accounts are set to pre-note automatically, and a Service Start Date fills in. Staff can still set an account to Active to override this.
Legal company	Client Management > Client Maintenance > Legal Company > Force Pre-Note	Every employee under that legal company is pre-noted. Clients cannot add an account as Active.
Service Bureau (all clients)	System Management > System Setup > Service Bureau Options > Force 'Pre-Note' Status for Direct Deposits Default	Accounts are pre-noted for new hires going through onboarding and for existing employees who add new banking details, across every client.

B. Shorten the pre-note period (optional)

1. Go to Client Management > Client Maintenance > Pay Group. You can also do this when adding a pay group in the New Client Wizard or in Client Utilities > Add Pay Group.
2. In Override Pre-Note Days, enter a number less than 10. Leaving it blank keeps the 10-day default.
3. Click Save. Repeat for every affected pay group.
4. If a payroll run schedule already exists, rebuild it:
   1. Go to Payroll Run Schedule and click Remove All Schedules.
   2. Make sure the override days are saved on every affected pay group.
   3. Back in Payroll Run Schedule, add the schedule with the correct dates, click Extend Schedule, then Save.

C. Pre-note a single employee

1. Go to Employee Management > Employee Pay > Direct Deposit.
2. Enter the account details and set the status to Pre-Note.
3. Save. The $0.00 test goes out with the next processed payroll, and the date is recorded in Employee Direct Deposit History.
4. Tell the client the employee will be paid by live check for every payroll during the pre-note period.

The system pre-notes an account only once. A new pre-note happens only when a new direct deposit record is added.

D. Pre-note all accounts for a new client in Conversion status

1. Confirm the Pre-Note All legal service is turned on (step A).
2. Go to Client Management > Client Maintenance > Legal and temporarily change the client status to Active.
3. In Payroll Run Schedule, schedule a Special payroll run. Under Blocked Services, check whether Pre-Note All was ticked automatically. If it is ticked, untick it so this run sends the pre-note.
4. Preview the payroll and check the Direct Deposit Register to confirm the pre-notes are included.
5. Check that wages and net pay are both $0.00. Stop if they are not.
6. Process the payroll. The pre-note period starts now.
7. Change the client back to Conversion status straight away. This prevents an accidental live payroll while setup continues.

If prior balances are not fully imported yet: give the Special payroll a check date that falls before the first check date of the next data conversion run. Conversion payrolls must be processed in date order.

• Example: Q1 history (Jan 1–Mar 31) is loaded and Q2 is still coming. Date the Special payroll Mar 31, return the client to Conversion, then run the Q2 conversions dated after Mar 31.

If the client has prior-year history: go to Client Management > Client Maintenance > Year End Options > Block Year End Reports and block all year-end reports. This stops W-2 output and keeps the client off the Year End Dashboard.

After the pre-note

• Employees are paid by live check for every payroll during the pre-note period: 10 days, or the pay group's override.
• The account becomes Active automatically on the first payroll processed after the period ends.
• Before that payroll, preview it and confirm the employee shows on the Direct Deposit Register. The Direct Deposit screen still says "Pre-Note" until a payroll is processed, so the register is the reliable check.
• Bank returns: if the bank reports a closed or incorrect account during the window, get corrected details from the employer. Saving the new account creates a new record and starts a new pre-note.

Troubleshooting:

Symptom	Cause	Fix
Account still shows "Pre-Note" after the period ended	Status changes only when the next payroll is processed	Preview the payroll and confirm the account is on the Direct Deposit Register, then process
New override days aren't applied	The schedule was built with the 10-day default	Remove All Schedules, save the override on every affected pay group, then re-add and extend the schedule (Procedure B, step 4)
Conversion pre-note payroll shows wages or net pay	Wrong run type or data on the Special run	Do not process. Correct the run until wages and net pay are both $0.00
Special run did not send pre-notes	Pre-Note All is ticked under Blocked Services	Untick it under Blocked Services and preview again
Conversion runs rejected or out of order	Special payroll dated after the next conversion run	Re-date the Special payroll before the next conversion check date
Client appears on the Year End Dashboard	Prior-year balances plus a live pre-note payroll	Block all year-end reports in Year End Options
Client can't add an Active account	Legal Company Force Pre-Note is on	Expected behavior. The account must pre-note