Set up Direct Deposit for Employees in QuickBooks

What is Direct Deposit in QuickBooks

QuickBooks payroll direct deposit is paid via QuickBooks direct deposit form. It is a legal doc that allows a company or an employer to pay a salary to its employees through direct deposit. Just select the accounts to be paid, and submit a report defining your target accounts. This is how you will be able to use the feature.

It seems easy than done. Let us understand it better and learn its process.

How to Set up Direct Deposit for Employees QuickBooks

There are two ways to set up direct deposit. One is to do while setting up payroll or just go to Employee tab, then Payroll info and under the payroll, info Click on Direct deposit

Or follow the steps below:

Provide Company info

Setting up your business for direct deposit in QuickBooks (QB). First, you need to verify your company info. It includes your company legal name, address, EIN, and the industry in which you are working in. If any owner info is changed, update that too.

Provide Bank Info

Provide the bank info of that bank from which you pay to your employees. Provide all credentials. Nature of account whether saving or checking, account number, routing number, or any other bank-related info. Check the box and agree to the T & C. You need to agree to terms and conditions by clicking on the checkbox.

Also Read: How To Delete a Deposit in QuickBooks?

Security Checks

To secure your confidential info from being theft QB asks to provide a three-step security check. Select the relevant options from the drop-down menu, whichever suits your business.

Verify Bank Account & Activate DD (Direct Deposit)

Pay the two-step verification small amount to verify your bank account. Once you pay the charges, you can activate your DD.

If you face any trouble following the above steps, better download the Direct Deposit Getting Started Guide for extra assistance.

Verify DD

Once you are done with the 4th step, find the Employee tab and go to my Payroll Service and click on Activate DD. Fill in the two amounts asked earlier and select the Next button. You are finished verifying your bank account

Provide Employees DD info

Before finishing the DD setup, ensure whether the employee’s info has the authorized DD or not. Follow the steps below for this-

• Go to the Employees tab.
• Further to the Employee center
• Check the employee who needs to set up with DD.
• Match the employee info.
• Move onto Payroll info.
• Find Direct Deposit.
• Click the Use Direct Deposit for Employee Name.
• Provide other bank-related info.
• Name of the bank, account number and type, and routing number.
• You can either direct deposit the whole amount or can choose to split the amount.
• Click OK to finish the process.
• Further, OK on the employee screen to save the info correctly.

Ready to run the Payroll

Once you are done with the 6th step, run payroll using DD. When finished, select the Send Payroll to Intuit option and pay to your employees via DD.

Provide DD Pin

Use your DD Pin to verify your transactions.

Print Pay Slips

Once you have paid your employees successfully using DD, do print payslips. For that go to the File menu, and Print forms and pay stubs to print payslips in QuickBooks. You can hand over these payslips to your employees as salary proof.

Important Point

Do not use the routing numbers beginning with number 5 for direct deposit or DD. These numbers are for internal bank purposes only. These are not meant for deposit slips. If any of your employees gives you this kind of routing number. The number beginning with number 5, do not forget to ensure that the info is drawn from a personal cheque and not a deposit slip.

Conclusion

If you could not understand any of the steps given or have any questions regarding Direct Deposit or any other QuickBooks related issue, Call the QuickBooks Helpline number. For Direct Deposit-related guidance, look for Direct Deposit Started Guide within QB. You can also contact us at our helpline number or can chat online with us, our QuickBooks experts will get back to you.

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