Direct Deposit with QB Payroll

QuickBooks has been playing an important role in helping a firm accomplish many things at the same time. Your e filing, payroll set up and many more jobs can be done in the wink of an eye. Of all the jobs, Direct Deposit is another feature that can be utilized in QuickBooks.

Direct Deposit is the process by the virtue of which your checks can be electronically deposited to your savings or checking account. The amount becomes available to you on the day of salary.

Steps How to setup QuickBooks Payroll Direct Deposit

The process of setting up QuickBooks Payroll Direct Deposit is very simple, either you are using an Online QB Payroll  plan or QB Desktop Payroll. And all the process is done within a day, it’s depending on the total number of employees you have, and all the required details are useful. According to, your choice sends both the same – day and next day direct deposits, depending on the plan you choose. 

Here some steps given below : let’s discuss how to setup QuickBooks Payroll Direct Deposit;

  • Setup your QuickBooks Payroll Account
  • Connect Your Bank Account (QuickBooks Payroll)
  • Print Direct Deposit Authorization Form & Give to Employee
  • Maintaining Employee Bank Account Data
  • Send Your First QuickBooks Direct Deposit

1. Step One: Setup your QuickBooks Payroll Account

  • Firstly, complete the setting  up your account.
  • After that fill the payroll tax information  & data about any existing employees:  Name , Address and Pay rate etc.
  • In the final step, if you follow the task list, you’ll  get to fill bank account details and start the process of setting up your direct deposit.

2. 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 selected Get started .

You’ll have the chance to review the details you are providing previously about your business, like  contact details , websites  and your tax id number. And also check  the name, date of birth and social security number of your principal officer.

You want to  know about the principal officer, the principal officer is the person who is legally in charge of the bank account you want to use. Finally,  you’ll have a chance to fill or review your bank account and routing number with any online banking login details .

There are two options available;

  • Add  bank account details manually .
  • Or login with your online banking credentials.

If you are using manual processes then delay the process for a few days. So you can provide your login details online , no worry about that because QuickBooks Payroll uses a secure system for all of its processes.  

Check if your bank account is connected to your payroll account, Then QuickBooks will send two pre authorized debits(both less than $1) to your bank account; After a few days they’ll disappear so don’t worry about that. Also you’ll receive an email requesting you to check the debit  amounts.

As soon as you check the amounts, then you’ll receive an email  confirmation stating your account has been verified.

If anyhow , you don’t get the email prompting you to verify the debit amounts,

  • Click the Setting button ->Payroll setting->Direct Deposit and Verify Test Transaction.

If you don’t see this option, the test amount hasn’t been debited.

  • Go back to step 2 Connect Your Bank Account, so you can restart.

3. Step Three: Print Direct Deposit Authorization Form & Give 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 each and every participating employee.

It is important and protects you, because legally they are not  authorized to send a paycheck to an employee’s bank account unless they provide you their approval. 

If you want to access the direct deposit authorization form with in the software so,

  • Click the “Tax and Forms” menu,
  • Employee and Contractor Setup->Authorization for Direct Deposit->And,  Bank Verification.
  • Select View 
  • Then print sufficient copies of each employee who wants to opt in to the direct deposit option.

Direct deposit, if employee want to attach a voided check linked to the bank account and they want their paychecks(salary) deposited into. And there are some Information show on the check such as bank name and routing and account numbers and if you’ll need to enter this into the QuickBooks Payroll software. Also there are options for depositing their checks into two different bank accounts; and  attach a voided check for both accounts.

4. 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 individually from the list and enter their corresponding bank details.

Whenever you’ll then enter the routing & account numbers listed on the employee’s voided check before hit OK. Make sure to double check the numbers, or they could experience a delay in receiving their first deposit.

5. Step Five: Send Your First QuickBooks Direct Deposit

Once your business bank details are confirmed  and  your employee’s details have  been entered, so 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 allow employees receiving their paychecks:

Direct Deposit With QuickBooks Desktop Payroll

If you are using  a QuickBooks Desktop Payroll , all the procedures to set up direct deposit for your business are the  same as online QuickBooks Payroll follows; the arrangement is little bit different & there are some extra methods.

For example:

  • Firstly go to the Employees menu. 
  • Then My Payroll Services
  • After that Activate Deposit .
  • Now finally you’ll need to recheck your company  details ,including bank account details also, then go to the Verify Your Company Information  section  .
  • Use the  Edit button for making any changes. 
  • Now select the View Agreement , if you want to review the details of the direct deposit service.

Once you agree to the terms & conditions you’ll answer questions in the “Check Security Limits” section and submit.Once your account is being verified, now you can set up each employee for direct deposit by opening each record or details through the Employee Center. And into the Payroll info tab will have a Direct Deposit button , here you’ll select Use Direct Deposit for employees and fill the bank account information for where the money should be deposited.


How to Using Direct Deposit in QuickBooks with Another Provider

1. Step One: Process of Creating a Payroll Item

  • Firstly go to the List menu & select Payroll Item List. 
  • Select the Payroll item then press New.
  • Now select Custom setup then Click New.
  • Select Deduction ->Bank Direct Deposit ->Direct Deposit Liabilities then click Next. 
  • Select None from the drop down menu on the Tax Tracking page .
  • Then Click Next.
  • Into the Calculate Based on Quantity page select Neither radio button, click Next.
  • Now select Net Pay on the Gross vs.Net page
  • Click Next.
  • Into the Default Rate & Limit page enter 100% in the first text field.
  • Second field will be blank. Click Finish.
  • Hit on the Employees menu and choose Employee Center and select the employee who receives direct deposit.
  • Into the drop down hit on the Change Tabs then enter the Bank Direct Deposit item in the Deduction section.
  • Click OK.

2. Step Two: Modify Payment Method

  • Firstly click the Employees menu then select Payroll Center.
  • Select Related Payment Activities and click Edit Payment Due Dates/Methods.
  • Now in Schedule Payment and select Bank Direct Deposits.
  • Click Edit.
  • Only mention the name of the bank in the payee field, and no need to give an account number or any type of contact information .
  • After that select the Weekly radio button  and choose the day that you process payroll
  • Now click Finish.

3. Step Three: The Process Payroll

  • Select Pay Employees into the Employees menu.
  • Clarify about your Pay Period Ends date, check Date and Bank Account.
  • Firstly check the employee you want to pay.
  • Then click Save & Next, to move on the next employee 
  • Now select Save & close for return to the enter Payroll information window.
  • In the final step click Continue & select Create Paychecks

print the pay stub and make sure to pay the liability in your check register with the bank account used to send direct deposit payments.


cancel Direct Deposit in QuickBooks Payroll

Simple methods to Cancel Direct Deposit in QuickBooks Payroll

Follow the given steps to cancel direct deposit in QuickBooks Payroll

  • Firstly select the Employees edit/Void  Paychecks.
  • Select show paychecks through dates to dates of a check.
  • Hit Tab .
  • Click on the check in the question and press void option.
  • Type Yes in the pop up box and click void.
  • Now click the terms & condition box of paycheck.
  • Once the checks have been cancelled , then shut the edit/  void paycheck window.
  • Then click on the Employees and choose the Payroll data.
  • Now click on the send option but you don’t get any deposit to send.
  • Be sure the paycheck has been voided by looking in your bank register .The memo line will  display the modification has been made to the check.

There are three simple steps to get the process done in QB. They are as mentioned below-

  • Select Employees’ details like the working hours, leave details and any other detail you think determines the person’s salary
  • Schedule the payment two days or forty five days in advance by selecting from which account the money needs to be debited
  • Finally you run Payroll to make sure the checks of pay get deposited into the account of the employees directly

We should understand that every step to be followed needs to have s set of requirement which need to be fulfilled. The same goes for Direct Deposit with QB Payroll. There are a set of requisites you need to check before you sign up and activate your Payroll in QB for direct deposit.

The requirements are as listed:

  • Any supported updated version of QuickBooks
  • Subscription of QB Desktop Payroll which is active
  • EIN which is the Federal Employer Identification Number
  • High speed internet access
  • A bank account that enables you to process Automated Clearing House or ACH transactions

After you have met the entire above mention criterion, you are deemed suitable to sign up for Direct Deposit with QB Payroll.

How to Sign up for Direct Deposit?

It is not a very complicated procedure. You need to be calm and patient while signing up so that no error pops up. This is a universal step for any important sign up.

You can follow the steps below to sign up:

  • Click on Employees menu, then select My Payroll Services and select Active Direct Deposit
  • Complete the form filling process and before submitted make sure you review it.
  • When Zip code is asked, make sure to enter only the five digits with no extension
  • Now click on Submit
  • An agreement link will pop up at the bottom of the screen. Read the agreement carefully
  • Now select I have read and agree to the terms of the service agreement checkbox
  • Now time for sign up, click on Sign Up
  • Don’t forget to get the Direct Deposit getting Started Guide which is very important

After the process of sign up is over, print the confirmation page when you print the guide mentioned above too. The guide is more about the necessary forms and materials which need to be completed before the paying to the employees start through Direct Deposit with QB Payroll.

It also consists of the instructions to be followed in order to complete the verification process of the Bank. Apart from this, it contains the instructions to process the Direct Deposit. To proceed with the Direct Deposit for the employees, you will have an authorization too in that guide.

The guide is quite useful as it also contains the list of Federal Reserve Holidays which can be helpful to plan your Payroll process.

If you couldn’t download the guide of Direct Deposit with the usual process, you have another option. You can clock on Help in QuickBooks menu and select Direct Deposit getting Started Guide and download it. You should make sure you have PDF file opener in your system as the guide will open in PDF format only.

That was easy, wasn’t it? Let’s take a look on certain conditions which you need to keep in mind before you process the Direct Deposit with QB Payroll after having fulfilled the criterion.

Don’t forget-

  • To transmit the Payroll Data in order to intuit before 1700 hours Pacific Time at least two banking days in advance before the actual check date. You can also transmit 45 days in advance
  • To have an Internet connection. QuickBooks however provides a secure connection in order to avoid any unauthorized access
  • Your Direct Deposit can be also transferred to an Intuit paycard
  • If the check date falls on a non-working day, then the deposit will take place on the next business day
  • DD Payroll is sent to ACH for clearance
  • Intuit does the process of debit from your bank account a business day before the check date. So make sure funds are available
  • The Paycheck will be deposited on the employees account on the day of salary

The whole process is length but a simple one. It is considered as one of the best process of getting your employees paid with not much paper work to be done. It is a one-time process and the process will recur every month unless you put a stop to it. QuickBooks Direct Deposit has brought a smile on many employers’ face. Do you want to be one of them?

If you get stuck anywhere in the process, feel free to get in touch with Payroll.AccountingErrors QuickBooks Technical Support Team, Which is available 24/7 on 📞+1-844-827-3817.


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