Issue/Symptom/Question

There is a new NACHA rule for payment files containing PPD credits for payroll and similar compensation type payments. The Entry Description in the file header (row 2, field 54-63) must begin with "PAYROLL". The new rule is effective 3/20/2026 and all payroll NACHA files must comply on or before the effective date. 

How is this set up in Penta?

Applies To

Penta for Windows

Payroll > Payroll Check Processing > Create ACH Direct Deposit File

Payroll > Centralized Payroll Check Processing > Create ACH Direct Deposit File

Payroll >  Setup Legal Entity Information > Us Direct Deposit Transmission Information

Resolution/Fix/Answer

This information pulls from the Create ACH Direct Deposit File > Entry Description field. This field populates as the first 10 characters of the OU description but, can be overwritten to the new required entry. 

The default Entry Description can be updated via Payroll > Setup Legal Entity Information > Us Direct Deposit Transmission Information > Default Company Entry Description field:

ACH File: