Direct Deposit for QuickBooks Payroll

QuickBooks Online (QBO) is one of the most sought after software of QuickBooks lineage. This software has garnered much popularity due to its many benefits like

  • Easy access from anywhere and anytime.
  • Accessible from any gadget – smart phones, tabs, Android and iOS
  • Much tighter Data Security.
  • Auto Update –The user does not have to update the software to next version manually.

Another best feature is that most of the new features incepted by Intuit are first hosted in QuickBooks Online. The same is the case with feature called Direct Deposit. Direct Deposit option for QuickBooks Payroll allows user to directly transfer salary and other incentives of the employees in their account. This feature at present is available in Beta version for QuickBooks Online. Get download or print Intuit QuickBooks Direct Deposit Form

How to Setup Direct Deposit for Employees QuickBooks

1. First Step: Open Employees section

Click on employees tab and under this section select edit button against a particular employee. Now go to 6th point asking “How do you want to pay your employee?” For this select the option stating ‘Paper Checks’.

2. Second Step: Specifications for paying the Employee

Now provide specifications regarding the method through which the company will forward the pay check of the employee. At times the employee could want to direct a part of their check to a savings account.

However, the employer can only transfer the salary directly to savings or chequing account type. TFSA or RRSP transfer can be performed in the next step that too only by the employee from their own bank or credit union.

3. Third Step: Open Employees section

Click on employees tab and under this section select edit button against a particular employee. Now go to 6th point asking “How do you want to pay your employee?” For this select the option stating ‘Paper Checks’.

4. Fourth Step: Specifications for paying the Employee

Now provide specifications regarding the method through which the company will forward the pay check of the employee. At times the employee could want to direct a part of their check to a savings account.

However, the employer can only transfer the salary directly to savings or chequing account type. TFSA or RRSP transfer can be performed in the next step that too only by the employee from their own bank or credit union.

Before proceeding to next step choose the appropriate option from below as per your preference:

  • Paper Check
  • Direct Deposit
  • Direct Deposit to 2 Accounts.
  • Direct Deposit with Balance as Check.

5. Fifth Step: Complete Authorization from the Employee

Now type in the required employee information and garner his authorization to start up a Direct Deposit account for either both Chequing and saving or for any one of them.

6. Sixth Step: Store Employees’ Documents

Along with completely filled form of authorization (in either electronic or paper form) for Direct Deposit, store other imperative documents in the permanent file of the employee like employment contract, correspondence and approval for vacation pay per pay period.

7. Seventh Step: Update Company’s Information

In order to complete the Direct Deposit process, the employer needs to provide complete and authentic details of the company. Once the banking details of the employee are entered, click on Done tab. Now the next step will be to enter relevant information regarding the company’s bank account details for not only company’s account but also for the knowledge of principal officer to complete the process for the 1st employee. The good news is that this step is need only once and not again for every further employees.

Note: After the completion of 5th step, all the steps from 1 to 4 needs to be repeated for each and every employee.

8. Step Eight: Verification

After the completion of whole process for all employees, the user will have to wait for the verification process to get over. A proper risk analysis is performed which can take up to 3 days to get completed.

The user will be asked to approve for certain amount to be transferred from your account, less than $1.00, in order to test the activeness of the bank account. In order to view the status of the process, Click on Payroll Settings tab on the top right corner and select Direct Deposit option.

Now under Employees list the user can see Employee’s Payment Method which will fluctuate between Direct Deposit and Pending to Direct Deposit. Once the approval is received, Pending will be removed automatically.

  1. In case the pay checks are generated on the basis of time-sheet, the user should review the data collection timing along with timing for payment. Also determine whether the cut-off amended in needed to create pay checks on time.
  2. It is imperative to activate this method of Payroll much in advance in order to complete the verification process in time so that the employees can receive salary on correct date.
  3. Ensure proper review of finances is done as funding of the payroll two days prior can lead to bump in smooth transfer of salary due to shortage in the cash flow.

Get Started With Related QuickBooks Payroll Questions:

  • I’m Old User of QuickBooks Payroll 2014, Recently I Bought Apple Mac. Do I Need to Purchased New Payroll for QuickBooks Mac or Is There Method to Use Old QuickBooks Registration Keys?
  • How do I write annual bonus checks for my employees that are specific from the regular payroll?

These steps should smoothly set up the Direct Deposit account for the employees. In case the user does face any issue in the process, they should immediately get in touch with experts of Intuit or QuickBooks from responsive QuickBooks Payroll Support Number. However, in case of urgency, alternative agency called QBPayrollHelp can be contacted directly via online chat and Toll Free Number Phone: 📞+1844.827.3817

FAQs

  1. How do I edit an employee’s direct deposit information?

    You have to modify the employee’s bank account details before you create a paycheck for him/her. Paychecks that are issued before one change the account details of the employee will be directly deposited into the old bank account.

    Before sending them to Intuit, you may remove and reform the paychecks to prevent this by following the steps below:

    💠The very first, open your paycheck
    💠Next, go to the Paycheck Detail window
    💠After that, uncheck the option named “Use Direct Deposit”
    💠And then, select the Save & Close option after clicking the Save button
    💠And finally, try to open a paycheck once again and select the Use Direct Deposit then Save button.

  2. How do I remove Direct Deposit permanently from the profile of the employee?

    You can remove the direct deposit from the setup for not paying the employee.

    Here’s how:

    💠Initially, go to the Employees and then choose the “Employee Center”
    💠Select the employee to which you want to edit by double-clicking on the name
    💠Next, go to the tab named “Payroll Information”
    💠Now, hit the “Direct Deposit” option
    💠At last, the box named “Use Direct Deposit” should be unchecked for that particular employee.

  3. Does my account have limits if I pay with direct deposits?

    Yes, your account does have a limit on the amount of money that you send with direct deposit to protect against fraud. But you are running a larger than normal payroll for things like pay raises, bonuses, then you can request for an increase.