Set up company payroll for direct deposit

What is QuickBooks Direct Deposit?

Direct deposit is a method of sending funds from one account to another that is digital or electronic. QuickBooks Payroll allows you to pay your employees fast using direct deposit. It’s possible to do so with their money market, savings, or checking accounts.

It is used to transmit employee paychecks without having to be physically present. You can transfer funds from your account to the employee’s bank account using this method. Using direct deposit has advantages for both the employee and the employer. But first you need to set up company payroll for direct deposit.

The various scenario where QuickBooks Direct Deposit is used

The following are some of the instances in which direct deposit is used:

1. Employee Pay

Many employers pay their staff by direct deposit. Employers benefit from increased convenience and decreased costs. It makes payday a snap for employees because the monies you earned are deposited into your account after clearing through ACH.

2. Refunds of Taxes

The United States government prefers to pay its residents by direct deposit. Both parties have safeguarded and streamlined the process. If you owe a tax refund, you will get it via direct deposit. If you don’t already have it, set it up to receive a rapid transfer from the IRS.

3. Checks for Stimulus

Citizens who opted into the IRS direct deposit program received checks deposited into the bank account listed on their tax returns.

How Does Direct Deposit Work?

Employees’ direct deposit information is used by the company to transfer the paycheck. After that, on payday, your financial institution deposits it into your account. Then they are transferred to the employer’s account within two working days. This is a simple digital fund transfer that benefits both parties.

1. set up direct deposit for your company’s payroll

The procedure for setting up company payroll for direct deposit is outlined below. 

• To begin, gather information about your company, principal officer, and bank. Name of the company, its address, and its EIN. Social security number, home location, and date of birth for the Principal Officer. Bank account numbers and credentials (user id and password).
• You must connect your bank account to your computer.
• Open the QuickBooks software on your computer.
• Then use your credentials to log in (User ID and Password).
• Go to the Employee menu and select the My Payroll Service option as well.
• Then, from the drop-down option, choose Activate Direct Deposit.
• Choose a button Let’s get started. 
• After entering the admin details, click on Continue.
• To sign in to your Intuit account, enter your email address or your User ID and Password, then click Sign in.
• choose the option Get Started.
• Click the Start button on the Business tab, then enter all of the information.
• After you’ve filled out all of the fields, click Next to continue.
• Now, enter the Principal Officer’s information and click the Next button.

2. Create a Bank Account

• Mention your bank’s name, then supply the credentials or, if an account number is requested, provide it.
• For your bank account, you must create a PIN. This pin must be used every time you transmit payment or paycheck. So double-check your PIN.
• After that, press the Submit button.
• Then, after clicking the Next button, click Accept and Submit.
• When the main officer’s full social security number is requested, confirm it and submit it.
• You now see one of the following messages on your screen:
  • Thank you for taking the time to sign up for QuickBooks Direct Deposit. What’s next in the Direct Deposit setup process? That means you’ll have to go through a few extra procedures to link your bank account.
• Your bank account is now linked. This indicates that you are ready to pay your staff via direct deposit as soon as possible. Set up the bank account information for the employee.
• Enter your bank account information into QuickBooks (in case of the bank is not connected automatically in QuickBooks)
• In two working or business days, check your bank account for a tiny debit amount of less than a dollar from QuickBooks Payroll.
• You will be able to see the amount when you are able to see it.
• Log in as the administrator of QuickBooks by opening the software and logging in.
• Then click on the Employees option.
• Select My Payroll Service as well.
• After that, select Activate direct deposit from the drop-down menu.
• Sign in to your Intuit Account using your credentials now (User ID and Password).
• After two mentions of the debit amount, click Verify.
• Enter the Payroll PIN you already created.
• Then click the OK button after selecting the Submit option.

Conclusion:

You must provide the information for the employee’s bank account. To set up direct deposit, you must first enter the data of the employee’s bank account into QuickBooks. You must first create the paychecks as usual, and then send the direct deposit to Intuit. In most cases, it takes roughly two business days. The paychecks are then deposited straight into the employee’s bank account, and direct deposit is completed.

Note: You can call or chat with us, in case of any issues or errors related to company payroll for direct deposit. 

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