The direct deposit feature in QuickBooks is a great alternative to the paper check method to enumerate employees. In addition to saving time, money, and effort from the user end, it also reduces the risk of fraud and theft by encrypting the business’s bank details which are often displayed openly on a paper check. Through direct deposit, the employees get their wages on the payday itself, and it also eliminates the need for storing copies of forms, files, and records of payroll in filing cabinets. With so many features at the bay, you might as well setup QuickBooks Payroll Direct Deposit today by following the blog till the end.
If you face any errors while trying to set up QuickBooks Payroll Direct Deposit through the steps below, feel free to ask for assistance by calling on the Asquare Cloud Hosting Helpline Number anytime.
What to Do Before QuickBooks Direct Deposit Set up?
There are some basic requirements for signing up for direct deposit in QuickBooks. Before you go on to activate QuickBooks payroll direct deposit, you need to fulfil these requirements.
- Your Business name, address, and EIN.
- Social security number, birth date, and home address of your Principal officer.
- Your online banking credentials and routing or account numbers.
- A properly set up payroll bank account.
- A US bank account set up for ACH transactions.
- Completed Direct Deposit Authorization forms of your employees.
How to Setup Direct Deposit for Employees in QuickBooks Desktop?
You can setup QuickBooks Payroll Deposit by following the steps mentioned below.
Step- 1: Link Your Bank Account to the Direct Deposit Service
The QuickBooks Desktop payroll direct deposit service uses your payroll account to pay to your employees. So, in the first step, we will connect your payroll checking account with the direct deposit service from QuickBooks.
- Go to QuickBooks and log in with your QB admin credentials.
- Navigate to the Employees menu and select My Payroll Service.
- Click on Activate Direct Deposit and select the Get Started button.
Important: If the Get Started button is not available, then follow the steps mentioned below.
- Click on I’m the admin, and I’m the primary person who can… and verify your admin user ID.
- Choose Continue and click on Sign In after entering your Intuit Account’s user ID and password.
- If you don’t have an Intuit Account, then click on Create an account option.
- At last, click on Get Started.
- Choose the Start option on the Business tab and fill in the required details.
- Click on Next and fill in the Principal officer info.
- Select Next and choose Add new bank account option.
- Fill in all the necessary bank information and verify your online banking credentials along with bank routing and account numbers, if prompted.
- Create a PIN to use for sending the payroll to Intuit, confirm it twice, and click on Submit.
- Click on Next and select Accept and Submit.
- Verify the SSN of the Principal officer if prompted by QuickBooks and click on Submit.
- Either of the two below-mentioned messages would come up on your screen:
- Your bank account is connected: If this message appears, then you can move on directly to the third step of the procedure.
- Thank you for signing up for QuickBooks Direct Deposit: This message means that your bank is not fully connected yet and you are required to follow the second step of the procedure.
Step- 2: Confirm Your Bank Account
The instructions mentioned below are meant only for those users who only signed up for QB direct deposit in the previous step. You need to verify your bank account to fully connect it with QuickBooks direct deposit service.
- Within two business days, check your bank account for a debit of $1 or less from Intuit QuickBooks Payroll.
- Once the amount is debited, go to QuickBooks and sign in as QB admin.
- Go to the Employees menu and select My Payroll Service.
- Click on Activate Direct Deposit and sign in to your Intuit Account.
- Mention the amount debited from your bank account twice on the page and click on Verify.
- Verify your payroll PIN and click on Submit.
- At last, select OK.
Step- 3: Enter Your Employees’ Bank Account Info
Finally, you need to enter the information in QuickBooks referenced from the Direct Deposit Authorization forms of your employees. The form itself is for your company’s records only and there’s no need to file it in QuickBooks.
- For the company’s records only, obtain a voided check along with the Direct Deposit Authorization form from your employees.
- Go to the Employees menu and select Employee Center to bring up the employee list of your organization.
- Click on any employee’s name and go to the Payroll Info tab.
- Click on the Direct Deposit button, and under the Direct Deposit window, select Use Direct Deposit for [employee’s name].
- Choose whether to pay the employee by depositing the paycheck into one or two accounts and enter their bank info like Bank Name, Routing No., Account No., and Account Type.
- If you select the two accounts option, mention the amount or percentage to go into the first account under the Amount to Deposit field.
- Click on OK to save the info and mention your direct deposit PIN if prompted.
Need Assistance To Setup QuickBooks Payroll Direct Deposit
At the end of our informative blog on the explanatory process to setup QuickBooks Payroll direct deposit, we would like to provide an easy and time-efficient way to get quick answers to your QB related-queries in the future. If you still need some explanation for questions that we failed to mention in the blog, feel free to dial the Asquare Cloud Hosting Helpline Number and get immediate assistance from a QB expert.
QuickBooks Direct Deposit Setup FAQs
The service sign-up itself is free of cost for all QuickBooks users. However, Intuit charges a fee for every direct deposit to employees done using your QuickBooks account. It’s usually more or less than $1.75 per paycheck, and users can also pay for monthly subscriptions to avail services like federal and state tax calculation.
Suppose an employee wants to change their bank account preference for salary deposit. In that case, you can make the necessary changes following the exact instructions you used to enter the information in the first place (Step- 3). However, if you created paychecks before updating the employee info, it will still deposit in the old bank account. You must delete or recreate the paychecks by following the given steps.
1. Go to the Paycheck Detail window by opening the paycheck and unmark the box against the Use Direct Deposit option.
2. Click on Save and then select Save & Close.
You can permanently remove an employee from QuickBooks to discontinue their direct deposit by following the given steps.
1. Open QuickBooks and select the Employees menu.
2. Click on Employee Center and right-click on the name of the employee you want to remove.
3. Choose the Delete Employee option and confirm the action by clicking on Yes.
As a preventive caution from fraud, there is a limit on the amount of money you can deposit to an employee’s account through the direct deposit facility from QuickBooks.