NACHA (National Automated Clearing House Association) has a new requirement when submitting payroll.
(and they’re making it our job to let you know)
To catch fraud faster, this new rule requires labels to certain electronic payments.
Starting March 20, 2026, any PPD (Prearranged Payment and Deposit) for payroll, like wages or salaries, must include “PAYROLL” in the Company Entry Description.
Here's what it should look like in a NACHA Formatted file:
Company Entry Field located in the 5 record, position 54-63