Posted On: March 11, 2026 by Austin Bank in:
We wanted to let you know about upcoming ACH rules changes that will affect you as an ACH originator. Nacha has passed two amendments that will roll out in 2026, the first which is described below and the second which we will inform you of in more detail in the coming weeks.
Amendment One: Standard Company Entry Description Effective Date: March 20, 2026
The new amendment requires companies to input the following in the Company Description field, which is used to describe the purpose of a payment:
(1) “PAYROLL” when they are initiating payments to Consumers related to wages, salaries or similar types of compensation (PPD credits)
When you originate a payment transfer that is related to wages, salaries or similar types of payment, if you see PAYROLL already in the Company Description field, you are compliant for that transfer. If you do not see it there, you are required to input PAYROLL in that field going forward (see below).
If you create your ACH transfers using our ACH module, please train your staff on the new requirement, including updating your procedures for entering Company Entry Descriptions.
If you are importing a file from an accounting system, ensure the required Company Entry Descriptions are being inserted by your software. Most software providers are aware of the new rule and are inserting the correct description when producing payroll related ACH files.
We will provide details of Amendment Two (effective date June 22, 2026) in a future communication.
Thank you for your attention to this important matter.
For more information, contact our Treasury Management Support Team at 903-295-4444 or at treasurysupport@austinbank.com
0 comments