Direct Deposit with QuickBooks Payroll

QuickBooks has been playing an important role in helping a firm accomplish many things at the same time. Your e-filing, payroll setup, and many more jobs can be done in the wink of an eye. Of all the jobs, Direct Deposit is another feature that can be utilized in QuickBooks.

Direct Deposit is the process by the virtue of which your checks can be electronically deposited to your savings or checking account. The amount becomes available to you on the day of your salary.

Steps How to setup QuickBooks Payroll Direct Deposit

The process of setting up QuickBooks Payroll Direct Deposit is very simple, either you are using an Online QB Payroll plan or QB Desktop Payroll. And all the process is done within a day, it’s depending on the total number of employees you have, and all the required details are useful. According to, your choice sends both the same–day and next-day direct deposits, depending on the plan you choose. 

Here are some steps are given below: let’s discuss how to set up QuickBooks Payroll Direct Deposit;

• Set up your QuickBooks Payroll Account
• Connect Your Bank Account (QuickBooks Payroll)
• Print Direct Deposit Authorization Form & Give to Employee
• Maintaining Employee Bank Account Data
• Send Your First QuickBooks Direct Deposit

1. Step One: Set up your QuickBooks Payroll Account

• Firstly, complete the setup of your account.
• After that fill in the payroll tax information  & data about any existing employees:  Name, Address Pay rate, etc.
• In the final step, if you follow the task list, you’ll get to fill in bank account details and start the process of setting up your direct deposit.

2. Step Two: Connect Your Bank Account (QuickBooks Payroll)

• If you are ready to set up your QuickBooks Direct Deposit.
• Click Let’s go then click Connect your Bank account.
• Then selected Get started.

You’ll have the chance to review the details you are providing previously about your business, like contact details, websites, and your tax id number. And also check the name, date of birth, and social security number of your principal officer.

You want to know about the principal officer, the principal officer is the person who is legally in charge of the bank account you want to use. Finally,  you’ll have a chance to fill out or review your bank account and routing number with any online banking login details.

There are two options available;

• Add bank account details manually.
• Or log in with your online banking credentials.

If you are using manual processes then delay the process for a few days. So you can provide your login details online, no worry about that because QuickBooks Payroll uses a secure system for all of its processes.  

Check if your bank account is connected to your payroll account, Then QuickBooks will send two pre-authorized debits(both less than $1) to your bank account; After a few days, they’ll disappear so don’t worry about that. Also, you’ll receive an email requesting you to check the debit amounts.

As soon as you check the amounts, then you’ll receive an email confirmation stating your account has been verified.

If anyhow, you don’t get the email prompting you to verify the debit amounts,

• Click the Setting button ->Payroll setting->Direct Deposit and Verify Test Transaction.

If you don’t see this option, the test amount hasn’t been debited.

• Go back to step 2 Connect Your Bank Account, so you can restart.

3. Step Three: Print Direct Deposit Authorization Form & Give to Employee

• Firstly check your bank account is connected.
• Then make sure your employees’ bank account details are set up in the system.
• Print Intuit’s direct deposit authorization form, before entering anything.
• You have to sign every participating employee.

It is important and protects you because legally they are not authorized to send a paycheck to an employee’s bank account unless they provide you their approval. 

If you want to access the direct deposit authorization form within the software so,

• Click the “Tax and Forms” menu,
• Employee and Contractor Setup->Authorization for Direct Deposit->And,  Bank Verification.
• Select View 
• Then print sufficient copies of each employee who wants to opt into the direct deposit option.

Direct deposit, if employees want to attach a voided check linked to the bank account and they want their paychecks(salary) deposited into. And there is some Information shown on the check such as bank name and routing and account numbers and you’ll need to enter this into the QuickBooks Payroll software. Also, there are options for depositing their checks into two different bank accounts; and attaching a voided check for both accounts.

4. Step Four: Maintaining Employee Bank Account Data

To maintain employee bank account data;

• Firstly go to the Employees tab & set them up.
• If the payroll records or information is already done /set up,
• you can choose each individual from the list and enter their corresponding bank details.

Whenever you’ll then enter the routing & account numbers listed on the employee’s voided check before hitting OK. Make sure to double-check the numbers, or they could experience a delay in receiving their first deposit.

5. Step Five: Send Your First QuickBooks Direct Deposit

Once your business bank details are confirmed and your employee’s details have been entered, so you can start sending electronic payroll deposits.

 Small business owners and human resources When it comes to processing payroll, it’s usually best to invest in a payroll. Set up a payroll schedule that allows employees to receive their paychecks:

Direct Deposit With QuickBooks Desktop Payroll

If you are using a QuickBooks Desktop Payroll, all the procedures to set up direct deposit for your business are the same as online QuickBooks Payroll follows; the arrangement is a little bit different & there are some extra methods.

For example:

• Firstly go to the Employees menu. 
• Then My Payroll Services
• After that Activate Deposit.
• Now finally you’ll need to recheck your company details, including bank account details also, then go to the Verify Your Company Information section.
• Use the  Edit button for making any changes. 
• Now select the View Agreement, if you want to review the details of the direct deposit service.

Once you agree to the terms & conditions you’ll answer questions in the “Check Security Limits” section and submit. Once your account is verified, now you can set up each employee for direct deposit by opening each record or detail through the Employee Center. And into the Payroll info tab will have a Direct Deposit button, here you’ll select Use Direct Deposit for employees and fill in the bank account information for where the money should be deposited.

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How to Using Direct Deposit in QuickBooks with Another Provider

1. Step One: Process of Creating a Payroll Item

• Firstly go to the List menu & select Payroll Item List. 
• Select the Payroll item then press New.
• Now select Custom setup then Click New.
• Select Deduction ->Bank Direct Deposit ->Direct Deposit Liabilities then click Next. 
• Select None from the drop-down menu on the Tax Tracking page.
• Then Click Next.
• On the Calculate Based on Quantity page select the Neither radio button, and click Next.
• Now select Net Pay on the Gross vs.Net page
• Click Next.
• On the Default Rate & Limit, page enter 100% in the first text field.
• The second field will be blank. Click Finish.
• Hit on the Employees menu and choose Employee Center and select the employee who receives the direct deposit.
• Into the dropdown hit on the Change Tabs then enter the Bank Direct Deposit item in the Deduction section.
• Click OK.

2. Step Two: Modify Payment Method

• Firstly click the Employees menu then select Payroll Center.
• Select Related Payment Activities and click Edit Payment Due Dates/Methods.
• Now in Schedule Payment and select Bank Direct Deposits.
• Click Edit.
• Only mention the name of the bank in the payee field, and no need to give an account number or any type of contact information.
• After that select the Weekly radio button  and choose the day that you process payroll
• Now click Finish.

3. Step Three: The Process Payroll

• Select Pay Employees into the Employees menu.
• Clarify your Pay Period Ends date, check Date, and Bank Account.
• Firstly check the employee you want to pay.
• Then click Save & Next, to move on to the next employee 
• Now select Save & close for return to the enter Payroll information window.
• In the final step, click Continue & select Create Paychecks

Print the pay stub and make sure to pay the liability in your check register with the bank account used to send direct deposit payments.

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Cancel Direct Deposit in QuickBooks Payroll

Simple methods to Cancel Direct Deposit in QuickBooks Payroll

Follow the given steps to cancel direct deposit in QuickBooks Payroll

• Firstly select the Employees edit/Void  Paychecks.
• Select show paychecks through dates to dates of a check.
• Hit Tab.
• Click on the check in the question and press the void option.
• Type Yes in the pop-up box and click void.
• Now click the terms & conditions box of a paycheck.
• Once the checks have been canceled, then shut the edit/  void paycheck window.
• Then click on the Employees and choose the Payroll data.
• Now click on the send option but you don’t get any deposit to send.
• Be sure the paycheck has been voided by looking in your bank register. The memo line will display the modification that has been made to the check.

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There are three simple steps to get the process done in QB. They are as mentioned below-

• Select Employees’ details like the working hours leave details and any other detail you think determines the person’s salary
• Schedule the payment two days or forty-five days in advance by selecting from which account the money needs to be debited
• Finally, you run Payroll to make sure the checks of pay get deposited into the account of the employees directly

We should understand that every step to be followed needs to have s set of requirements that need to be fulfilled. The same goes for Direct Deposit with QB Payroll. There are a set of requisites you need to check before you sign up and activate your Payroll in QB for direct deposit.

The requirements are as listed:

• Any supported updated version of QuickBooks
• Subscription of QB Desktop Payroll which is active
• EIN which is the Federal Employer Identification Number
• High-speed internet access
• A bank account that enables you to process Automated Clearing House or ACH transactions

After you have met the entire above mention criterion, you are deemed suitable to sign up for Direct Deposit with QB Payroll.

How to Sign up for Direct Deposit?

It is not a very complicated procedure. You need to be calm and patient while signing up so that no error pops up. This is a universal step for any important signup.

You can follow the steps below to sign up:

• Click on the Employees menu, then select My Payroll Services and select Active Direct Deposit
• Complete the form filling process and before submitting make sure you review it.
• When Zip code is asked, make sure to enter only the five digits with no extension
• Now click on Submit
• An agreement link will pop up at the bottom of the screen. Read the agreement carefully
• Now select I have read and agree to the terms of the service agreement checkbox
• Now time to sign up, click on Sign Up
• Don’t forget to get the Direct Deposit getting Started very important Guide

After the process of signing up is over, print the confirmation page when you print the guide mentioned above too. The guide is more about the necessary forms and materials which need to be completed before the paying to the employees starts through Direct Deposit with QB Payroll.

It also consists of the instructions to be followed to complete the verification process of the Bank. Apart from this, it contains the instructions to process the Direct Deposit. To proceed with the Direct Deposit for the employees, you will have authorization too in that guide.

The guide is quite useful as it also contains the list of Federal Reserve Holidays which can be helpful to plan your Payroll process.

If you couldn’t download the guide on Direct Deposit with the usual process, you have another option. You can clock on Help in the QuickBooks menu and select Direct Deposit Getting Started Guide and download it. You should make sure you have a PDF file opener in your system as the guide will open in PDF format only.

That was easy, wasn’t it? Let’s take a look at certain conditions which you need to keep in mind before you process the Direct Deposit with QB Payroll after having fulfilled the criterion.

Don’t forget-

• To transmit the Payroll Data to intuit before 1700 hours Pacific Time at least two banking days in advance before the actual check date. You can also transmit 45 days in advance
• To have an Internet connection. QuickBooks however provides a secure connection to avoid any unauthorized access
• Your Direct Deposit can be also transferred to an Intuit pay card
• If the check date falls on a non-working day, then the deposit will take place on the next business day
• DD Payroll is sent to ACH for clearance
• Intuit does the process of debit from your bank account a business day before the check date. So make sure funds are available
• The Paycheck will be deposited into the employee account on the day of the salary

The whole process is long but a simple one. It is considered one of the best processes of getting your employees paid with not much paperwork to be done. It is a one-time process and the process will recur every month unless you put a stop to it. QuickBooks Direct Deposit has brought a smile to many employers’ faces. Do you want to be one of them?