How to Set up Direct Deposit in QuickBooks

QuickBooks allows a direct deposit feature to save more time & effort. Many small organizations activate this payroll feature to deposit salaries on their employee account. This blog will cover major concepts related to direct deposits along with its advantages & the accurate step-by-step guidance to set up direct deposit in QuickBooks.

What is the Direct Deposit Feature in QuickBooks

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. It is a feature that permits payment directly on the employee’s account without the inconvenience of manually writing checks. In this process, funds are integrated straight into savings accounts. This method plays an important role in Payroll checks to prevent large efforts.

Why Direct Deposits

Direct deposit helps in finance management seamlessly. It restricts the no of efforts that you required to go the bank for payment since your money is a direct deposit on the account automatically.

• More Convenient: An employee receives payment via direct deposit; funds are automatically added to their account without any further action. It doesn’t matter where are you staying, the funds will be credited.
• Save money & resources: With this electronic method, you don’t need to write checks or send mail which in turn saves the business investment while saving resources connected with printing tasks. This is less expensive.
• More secure payment: Funds are seamlessly transferred from one account to another in a secure manner. The organization uses direct deposits to perform a secure transaction.

Requirements mandatory while setting up Direct Deposit:

• The QuickBooks version whether it is compatible with direct deposit or not.
• on QuickBooks Desktop Subscription.
• Employer Identification Number which is abbreviated as EIN to the payroll.
• Internet connection to avoid interruption.
• Account is a must to manage entire transactions with Automated Clearing House.

The various scenarios where QuickBooks Direct Deposit is used

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

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 money you earn is deposited into your account after clearing through ACH.

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.

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 to Set Up Direct Deposit in QuickBooks Desktop to Receive Payments

Entire steps including editing depositing & setting are done after activating direct deposits for an organization in QuickBooks Desktop Payroll. To perform a direct deposit follow the below-written instructions. It includes filling up a direct deposit Authorization form, verifying account information & more.

Following is the list of steps for setting up employees for Direct Deposit:

• Initially, Locate the Employee & then choose the Employee Center to display the list containing details of the employee.
• Perform a double-click on the employee’s name with your mouse associated with a system
• After this click on the Payment Info option.
• Now discover the Direct Deposit window and select Use Direct Deposit for preferred employee
• Select the deposit account i.e. one or more accounts.
• Fill in the employee’s financial details including Routing number, account number of employee, Bank name, type of account, and more.
• You are required to input the employee’s amount & percentage that you want to deposit in another account.
• Save the detail by selecting an Ok button.

How to Set up Direct Deposit for Employees in QuickBooks

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

Step 1: Provide Company info

• First, you need to verify your company info.
• It includes your company’s legal name, address, EIN, and the industry in which you are working.
• If any owner info is changed, update that too.

Step 2: Provide Bank Info

• Provide the bank info of the bank from which you pay your employees.
• 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.

Step 3: Security Checks

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

Step 4: 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.
• Find the Employee tab 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.

step 5: Provide Employees with 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.
• 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 directly deposit the whole amount or choose to split the amount.
• Click OK to finish the process.
• Further, OK on the employee screen to save the info correctly.

Step 6: Ready to run the Payroll

• Once you are done with the 5th step, run payroll using DD.
• When finished, select the Send Payroll to Intuit option and pay your employees via DD.
• Use your DD PIN to verify your transactions.

How to Set up Company Payroll for Direct Deposit in QuickBooks

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.

Step 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.

Step 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 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 can 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.

How to Set up QuickBooks Payroll Direct Deposit

The process of setting up QuickBooks Payroll Direct Deposit is very simple, whether you are using a QuickBooks Online Payroll plan or QuickBooks Desktop Payroll. All the process is done within a day, depending on the total number of employees you have, and all the required details are useful.

Step 1: 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.

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 select Get Started.

Step Three: Print the Direct Deposit Authorization Form & Give it 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.

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.

Step Five: Send Your First QuickBooks Direct Deposit

Once your business bank details are confirmed and your employee’s details have been entered, 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.

Similar Post: Cancel a Direct Deposit in QuickBooks Desktop

How to Manage Direct Deposit

edit employee information on direct deposit

• You are required to open your paycheck & locate the paycheck Detail option
• Unselect the Use Direct Deposit tab appearing on the paycheck details & choose Save and after that click on Save & Close
• At last, reopen the Paycheck and select the Use Direct Deposit tab.
• Hit on the Save button.

erase the direct deposit profile?

If you want to remove the direct deposit setup of an employee then follow the given steps:

• Select Employees and then click Employee Center
• Perform click on the preferred employee that you want to apply modification
• Select the Payroll info option
• Hit the Direct Deposit button and clear the field that you want to erase.

Check the Status of an Employee’s Direct Deposit Paycheck

• Go to the Employees menu and select View Payroll Run Status.
• In the Recent payroll area, select finance.
• Select the View Payroll Run Status drop-down and after that select Finance. You’ll see the status of the check on the Payroll status window.

Similar Post: Fix QuickBooks Direct Deposit Not Working Issue

How to reach us

Through this blog, we tried to cover major concepts of Direct Deposit setup on the QuickBooks software. Meanwhile, if you are stuck performing any of the steps or want any assistance regarding QuickBooks errors & any other functional error, you can call anytime to the professionals at the toll-free QuickBooks number anytime. The team has great listening & technical skills to quickly discover the core of your query and provide the best resolution accordingly. There is another method of dropping an email that lets you reach the team instantly.

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