The Course of Action to Setup QuickBooks Payroll Direct Deposit

An excellent substitute for using paper checks to pay staff is QuickBooks' direct deposit option. Payroll processing is streamlined, and the bank reconciliation procedure is also made more efficient.

Employees who receive direct deposit receive their salary on payday, straight into their money market, savings, or checking account. In addition to giving you greater control over payroll operations and costs, direct deposit also removes the need to keep copies of forms, files, and payroll records. 

This post will cover the entire process of setting up QuickBooks payroll direct deposit, including establishing your business, confirming your bank account, and obtaining a direct deposit authorization form. To set up QuickBooks payroll direct deposit, you need to continue reading this blog until the end.

Essential Considerations Before Establishing Employee Direct Deposit

• Don't forget to collect the account information from the employee's check while you're setting up direct deposit for them

• QuickBooks only permits direct deposits for accounts located in the United States; thus, employees' accounts shouldn't be located outside of the country

• You must need account information from the card issuer, such as the account and routing number, if you wish to use a payroll card to pay your employees

• If an employee would like to have a direct deposit into their savings account, they can request account information by contacting their financial institution

• Ensure that your staff members' accounts are marked as checking or savings accounts

• QuickBooks is unable to manage the money market account type; thus, employees need to get in touch with their bank to make the required adjustments

How to Setup Direct Deposit on Your Application

• Choose the Settings icon > click the Payroll settings

• Hit on the Bank Account menu > fill the required details in the field for your Business, Principal Officer, & Bank account

• At the end, choose the Save button displayed on your screen

A Comprehensive Guide to Employee Direct Deposit Configuration in QuickBooks Payroll

To enable direct deposit for your staff in QuickBooks, follow the detailed instructions below:

Step I: Set up DD's company payroll

• Name, address, and EIN of the company

• This includes the home location, birthdate, and Social Security number of the chief officer

• Bank account numbers and routing information, as well as online bank login credentials.

• Bank account information for employees and contractors

Step II: Linking the Bank Account to QuickBooks

The linking procedure is available in two modes: one accessed through the online payroll medium and the other via desktop. 

a: QuickBooks Online Payroll Instructions

• Choose Overview under the Payroll section of QuickBooks Online

• From the Connect Your Bank menu, choose Let's Go

• From the Get Started menu, select Edit under Businesses

• After entering your Federal tax ID number and any other missing information, click Next

• After entering the Principal Officer's name, date of birth, and social security number, click Next

• Select your bank, then, when prompted, enter your online banking login information

• Alternatively, provide the account and routing number by selecting the provide bank info manually option

• Lastly, select the Accept and Submit option after clicking Save

b: QuickBooks Desktop Payroll Instructions

• In QuickBooks, enter your QB admin credentials to log in

• Click on My Payroll Service under the Employees menu

• After selecting the Get Started button, click Activate Direct Deposit

• Hit on My Payroll Service under the Employees menu

• Important: Follow the instructions below if the Get Started button is not accessible

•  As the administrator, I am the primary point of contact

• I'm the administrator, and I'm the main person who can confirm the user ID or email address of your administrator

• Once your user ID and password have been entered into your Intuit Account, select Continue and click Sign In

• To create an account if you don't already have one, choose the Create account option

• Click Get Started at the end

• Select the Start option from the Business menu and provide the necessary information

• Enter the principal officer's information and click Next

• Choose the Add new bank account option after selecting Next

• Now, provide your bank's name, account number, and routing information to log in using internet banking

• To transmit the payroll to Intuit, create a PIN, double-check it, and then click Submit

• After choosing Accept and Submit, click Next

• If asked by QuickBooks, confirm the principal officer's SSN and press Submit

• One of the following notifications will now show up on your screen:

• You’ve connected your bank account

• Thank you for signing up for QuickBooks Direct Deposit

Conclusion 

We hope the information mentioned earlier helps you in setting up direct deposit in QBDT & QBO versions. Moreover, if the feature isn’t functioning properly, you can dial +1(855)-738–0359 and directly connect with our tech team, who will guide you.

Explore more:- How to fix QuickBooks Online Login Problems?

Setup QuickBooks Payroll Direct Deposit FAQ

What is QuickBooks Payroll Direct Deposit?

• QuickBooks Payroll Direct Deposit is a feature that allows employers to pay their employees electronically by transferring funds directly into their bank accounts. This eliminates the need for physical checks and ensures faster, safer, and more reliable payroll processing.

How do I set up QuickBooks Payroll Direct Deposit for the first time?

• To set up Direct Deposit, you need an active QuickBooks Payroll subscription, a verified company bank account, and correct employee banking information. Once enrolled, you can add employee details, authorize deposits, and begin processing payroll directly through QuickBooks.

What information is required to set up QuickBooks Payroll Direct Deposit?

• Employers need to provide their company bank account details, including routing number and account number, for verification. Employee information such as bank account details, tax information, and authorization forms are also required to complete the setup process.

How long does it take to activate QuickBooks Payroll Direct Deposit?

• The activation process typically takes a few business days because QuickBooks verifies your company bank account through test deposits. Once verified, you can start paying employees via direct deposit without delays.

Can employees use different banks for QuickBooks Payroll Direct Deposit?

• Yes, employees can provide details of any bank account in which they want to receive their salary. QuickBooks allows multiple employees to have different banks, making it flexible for payroll distribution.

What are the benefits of using QuickBooks Payroll Direct Deposit?

• Direct Deposit ensures timely payments, eliminates the risk of lost or delayed checks, and reduces payroll processing costs. It also provides employees with convenience, as they can access their funds directly from their bank account without needing to visit the office.

Is QuickBooks Payroll Direct Deposit secure?

• Yes, QuickBooks uses advanced encryption and verification processes to ensure that all payroll transactions are safe. By avoiding paper checks, it reduces the chances of fraud or stolen paychecks.

Can I cancel or change a QuickBooks Payroll Direct Deposit?

• Yes, employers can cancel or modify a direct deposit before the payroll submission deadline. If a deposit is already processed, adjustments can be made in the next payroll run. Employee bank details can also be updated anytime within QuickBooks.

Are there any fees for setting up QuickBooks Payroll Direct Deposit?

• Direct Deposit is included with most QuickBooks Payroll plans. While QuickBooks itself does not charge extra fees, some banks may apply standard transaction fees. It is important to confirm with your bank regarding any additional charges.

What should I do if QuickBooks Payroll Direct Deposit fails?

• If a direct deposit fails, the funds are usually returned to the company bank account. Common reasons include incorrect bank details or insufficient company funds. Employers can correct the issue in QuickBooks and reprocess the payroll payment.