A QuickBooks payroll direct deposit is a feature that allows businesses to transfer employee wages and contractor payments directly into their bank account, without depending on paper checks. It automates the process of paying your team, ensuring timely, accurate payments by calculating and depositing funds directly into their accounts, with employees able to view their pay stubs online through QuickBooks Workforce.
The only requirements are that the accounts must be United States accounts and accept ACH transactions. To get started, you must set up direct deposit in QuickBooks Payroll and begin processing payments automatically. Explore this guide to learn how to process automatic transactions; let’s take a deep dive into this blog.
Let’s Set Up Payroll Direct Deposit in Both Desktop & Online Versions
To process the QuickBooks same-day direct deposit to your employees or contractors directly to their bank accounts, as previously discussed, you must set up and initiate QuickBooks Payroll direct deposit.
The steps below cover detailed steps on how to set up the company file, get an authorization form, set up the direct deposit for employees, and finally process a deposit. So, let’s get started:
1. Set up your company payroll
For QuickBooks Payroll direct deposit, you must set up your company file first for better security and an enhanced employee experience. This way, you don’t have to gather all the information separately. Proceed with the steps below and prepare your company file for the direct deposit:
a. Gather your business, bank, and principal officer info
You will need to do the following to set up the direct deposit:
- Business name, address, and EIN
- Principal officer’s Social Security number, birth date, and home address
- Online bank credentials, or your company’s bank routing and account numbers
- Employees’ or contractors’ bank account info
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b. Connect your bank account
QuickBooks Online Payroll
- Follow this link to perform the steps in the QB product.
- Select Let’s go under Connect your bank.
- Hit Get started.
- Select Edit from Business.
- If there is any missing information, add it, including your federal tax ID number. Then, select Next.
- Add your Principal Officer name, address, date of birth, and Social Security number, then select Next.
- Choose Add new bank account.
- Look for your bank name. You might be asked to enter the online banking user ID and password. Otherwise, click on Enter bank info manually. Enter the routing and account number, then click on Save.
- Hit Accept and Submit.
- If there’s a need to change the existing payroll bank account, check out Change your payroll bank account.
Note: When updating the bank information, you might need to enter a code that you will receive on your mobile number to save the changes.
QuickBooks Desktop Payroll
- Launch QuickBooks, then sign in using the QuickBooks admin username and password.
- Navigate to Employees at the top.
- Select My Payroll Service, then Activate Direct Deposit.
- Hit on Get Started. If you don’t see the Get Started option:
- Click I’m the admin, and I’m the primary person who can…, then enter the admin email address or user ID.
- Select Continue.
- Type the email address or User ID with the password for the admin Intuit account and select Sign in. If you are a new user or do not have an Intuit Account, select the Create an account link.
- Note: If you have already signed into the Intuit Account somewhere else in QuickBooks, you won’t see this screen.
- Hit on Get Started.
- Go to the Business tab and select Start. Fill in the information and select Next.
- Enter the Principal Officer’s info and click Next.
- Click Add new bank account.
- Type the name of your bank and the online banking credentials, or you can enter the bank routing and account numbers.
- Create a PIN. This will be used each time you send a payroll to Intuit. Confirm the PIN twice and select Submit.
- Select Next, then click Accept and Submit.
- When prompted, make sure the Principal officer’s full Social Security number is entered and select Submit.
You will see the following messages on the screen:
- Your bank account is connected. It means you are all set to pay your employees via direct deposit in QuickBooks Desktop right away. Check step 4: Set up your employees’ bank account info and continue.
- Thank you for signing up for QuickBooks Direct Deposit. Wondering what’s next to activate direct deposit? It means you need to perform a few more steps to connect the bank account. Check Step 3: Verify your bank account.
c. Verify your bank account (if you couldn’t connect instantly)
If you aren’t able to connect your bank instantly, Intuit will ping your account with a test debit of less than $1.00. To authorize this, you will need to enter the amount and process the payroll transactions. This may take up to 2 business days for the amount to be debited.
d. Set up your employees’ direct deposit
To start paying your employees via direct deposit, you must set up their direct deposit accounts and process their pay.
2. Get a direct deposit authorization form
A QuickBooks Payroll direct deposit form and voided check serve as a legally binding agreement that grants permission for an employer or agency to electronically deposit funds into an employee’s or recipient’s bank account, and it will be a way to share the bank information as well.
a. QuickBooks Online Payroll
Your employees may be able to add their information independently if you use QuickBooks Online Payroll and have access to the QuickBooks Workforce web portal.
To get your direct deposit information by paper:
- Follow this link to finish the steps in your QB product.
- Select Fillings, then click on Employee Setup.
- Select Bank Verification next to Authorization for Direct Deposit.
- Click on View.
b. QuickBooks Desktop Payroll
To get the Intuit QuickBooks payroll direct deposit form, obtain a voided check or specific info, such as bank account and routing number, directly from your employee. This voided check is the only record you have; no need to submit it to QuickBooks Desktop. It will be used for the information and bank details only.
3. Add direct deposit to your employees
Finally, let’s process the direct deposit to your employee’s account in the section below:
a. QuickBooks Online Payroll
- Follow this link to finish the steps in your QB product.
- Choose your employee from the list.
- Select Start or Edit from the Payment method.
- Under the Payment method drop-down, select Direct deposit. If your employee hasn’t signed the direct deposit authorization yet, you can access the form to finish the deposit.
- Select your preferred Direct deposit method (Splits can be done as a dollar amount or as a percentage.):
- Direct deposit to one account
- Direct deposit to two accounts
- Process the direct deposit with the balance as a check.
- Type the routing and account numbers from your employee’s direct deposit voided check and select Save.
b. QuickBooks Desktop Payroll
If your employee’s bank asks that the account to process the QuickBooks payroll direct deposit should be tagged as a money market, make sure to update your employee that QuickBooks Desktop only accepts checking or savings accounts, so you can select Checking before processing.
- Go to Employees at the top.
- Select Employee Center to open your employee list.
- Choose the employee’s name you are processing the direct deposit to.
- Navigate to the Payroll Info tab.
- Hit the Direct Deposit button.
- In the Direct Deposit window, choose Use Direct Deposit for [employee’s name].
- Select whether the paycheck should be deposited in one or two accounts.
- Enter your employee’s financial institution information, such as Bank Name, Routing No., Account No., and Account Type.
- If you choose to deposit to two bank accounts, enter the amount or percentage of the employee’s salary to be deposited into the first account in the Amount to Deposit field. The remaining amount goes to the second account.
- To save the information, click OK.
- Enter the direct deposit to finish the direct deposit when prompted.
Conclusion
So, this is the end of this detailed guide where we have discussed how to set up or get started with QuickBooks payroll direct deposit in both Desktop & Online versions. This information should be very helpful in starting to process direct deposits, whether you use QuickBooks Desktop or the Online versions.
If you get stuck somewhere or need help with something, connecting with QuickBooks professionals is recommended. Dial +1(866)500-0076 to talk to an expert now!
Frequently Asked Questions
- Why is my QuickBooks payroll direct deposit not working?
Your QuickBooks payroll direct deposit may not be working due to incorrect or outdated employee bank details, a weak internet connection, an inactive payroll subscription, or an outdated QuickBooks software version.
- How does QuickBooks pay employees by direct deposit?
To pay employees by direct deposit with QuickBooks, you must first enable the payroll feature and then add each employee’s bank routing and account numbers to their profile in the Employee section. When you run payroll, QuickBooks processes the direct deposit from your linked bank account and sends the funds to your employees’ bank accounts, taking one to two business days for completion.
- How do I activate direct deposit in QuickBooks?
To activate direct deposit in QuickBooks, navigate to the Payroll section, activate the direct deposit feature for your business by providing your bank details and completing the verification process, and then enter your employee’s bank account information, potentially by having them fill out a direct deposit authorization form for you to upload or manually enter the details into QuickBooks.
- Why is my QuickBooks payment not available for instant deposit?
Your QuickBooks payment may not be available for instant deposit due to an insufficient balance in your QuickBooks payments account, incorrect or improperly linked bank account details, a restriction on your bank account, or if the payment is still under review by QuickBooks for new users or large transactions.
- How do I know if a QuickBooks direct deposit went through?
You can verify if a QuickBooks direct deposit went through by checking the confirmation report in the Items Received section after sending payroll, having employees use QuickBooks Workforce to view their pay stubs, and confirming the funds have been deposited into the employee’s bank account, which can take up to two business days.