The setup for QuickBooks Payroll direct deposit will require the input of your companys basic information (such as business name, address, and employer identification number or EIN), your business bank account details, and your employees banking information (like account and routing numbers). In this guide, well walk you through how to set up direct deposit for QuickBooks Payroll online and then highlight the differences in setting it up for QuickBooks Desktop Payroll.
Visit QuickBooks Payroll
Note: For new QuickBooks Payroll users, you must complete the initial steps of your account setup (following the instructions on the Overview screen) before you can set up its direct deposit feature. Before you are granted the option to enter your business bank account details into its system, you have to input payroll tax information and data about your existing employees such as name, address, and pay rate. For more details, check out our full-length guide on how to set up payroll in QuickBooks .
Step 1: Connect Your Business Bank Account to QuickBooks Payroll
When youre ready to set up your QuickBooks Payroll direct deposit, you have two options. If you are in the process of setting up QuickBooks Payroll, just click the Start button located beside the Connect your bank task and then select Get Started . QuickBooks then leads you through the steps for inputting (or verifying) bank account and other information needed to set up your account.
On the other hand, if your payroll account is already in use, and youve been processing paper checks, you can go directly to the systems Settings and then click on Payroll Settings to get started.
Before moving forward, have all of your business and bank account information, including the principal officer information, ready for reference and easy verification.
Depending on your view, there are two ways to get to the setup. (Source: QuickBooks demo on YouTube)
Next, you will have to connect your business bank account to QuickBooks. The setup screen will walk you through what information youll need to include.
QuickBooks takes you step by step through the process of adding your account. (Source: QuickBooks demo on YouTube)
- Log in to your bank account online; this makes it easier for QuickBooks to connect to it.
- Input your business information, including your EIN. Click Next .
- Enter the information about your companys principal officerone legally in charge of the business bank account you want to use (the person who signs the checks). Aside from their full name, the system will require you to input their birth date, home address, and Social Security number.
- Input your account information into QuickBooks. It already has some bank information loaded, but if you do not see your bank in your choices, you can manually input the information.
- Click Accept and Submit, then OK .
If you connected your bank account to QuickBooks Payroll manually
Its easiest to connect to QuickBooks by signing into your account online first and letting the platform handle the rest. In such a case, it can verify the account in moments, whereas manual connection can delay the verification by a few days. However, if you could not find your bank or preferred to input the information manually, then QuickBooks will need you to verify the connection.
If you connected manually because youre worried about providing your login information online, keep in mind that QuickBooks Payroll uses a secure system for all of its processes to keep your data safe.
- QuickBooks will send a test deposit transaction of less than $1 into your account within two business days. You can call your bank and check your bank statement online to see if the test transaction pushed through. It will appear on the statement as either Intuit: Verify Bank or QuickBooks: Verify Bank. This transaction will disappear in a few days.
- You will receive an email requesting you to verify the test transaction. After you have confirmed the amount, you will receive another email stating that your account has been verified.
- If you dont receive the email prompting you to verify the test transaction, you can log in to your QuickBooks Payroll account to complete the verification. There are several ways to do this. a. You can check your to-do list on the Overview screen and click Lets Go on the Check Your Account for Small Deposit, then verify option. Select Verify your Account and then enter and confirm the amount of the test transaction from your bank account. b. If the verify account task doesnt appear on your Overview screen, you can select Settings , and then Payroll Settings . Under Bank Accounts , select Company , and then click Verify Account . Then, enter and confirm the test amount.
- If you dont see the option to verify your account, it means that the test amount hasnt been debited. Youll need to restart this step Connect Your Business Bank Account . You can also contact QuickBooks payroll support team for assistance.
You dont need to enter the dollar sign. If the test transaction amount is $0.53, you should enter 0.53 into the boxes.
Step 2: Have Employees Authorize Direct Deposit for Their Pay
Connecting your bank account is only the first part of paying employees with direct deposit. Next, you need to set up their accounts. For that, you need two things:
- Their account information . That includes the account number and routing number of their bank accountor accounts, if they want to split their pay.
- Signed permission to pay them via direct deposit . You need to have each participating employee sign an authorization form for direct deposit. This is for your protection, as youre not legally allowed to send a paycheck to an employees bank account unless they give you their approval.
If you have HR software with electronic onboarding , this form may already be available and allow electronic signatures.
QuickBooks has a form that you can print and use, but you can also use your own direct deposit form . In addition to signing the document, have each employee attach a voided check for each of the bank accounts in which they want their paychecks deposited.
To access the direct deposit authorization form within QuickBooks Payroll, go to the Taxes menu and click Payroll Tax . Then, select Filings and Employee Setup . Next to Authorization for Direct Deposit , youll select Bank Verification . Select View and print enough copies for employees who prefer to receive their pay through direct deposits.
Keep the signed authorization forms in your employee records. QuickBooks Payroll doesnt need a copy of it. (Source: QuickBooks)
Step 3: Enter Employees Bank Account Details
You can enter employee information in one of three waysadd it when you add a new employee, update it before running payroll for an existing employee, or have the employee add their own information. Regardless of how you do it, be sure you have a consent form and that you double-check the numbers. Putting in the wrong numbers can delay your employee getting paid on time.
- Add for New Employee
- Update for Existing Employee
- Use Employee Self-setup
QuickBooks Payroll will let you download employee information from other payroll services or spreadsheets. Here, we show you how to do an individual employee.
Its best to add employee bank information from their check stub. (Source: QuickBooks demo on YouTube)
- Go to Payroll, then Add Employee . Make sure that Self-Setup is off.
- Add employee information as necessary. There are some sections you dont need to fill, but you do need to add name, Social Security number, contact information, and pay schedule.
- Where it asks How Would You Like to Pay (employee) , select Direct Deposit and input the account and bank routing information.
If you have an employee already on the payroll, the easiest way to change it is from Payroll.
You can add account information from the employee information section or from payroll. (Source: QuickBooks demo on YouTube)
Click on Payroll , then the employees name. It will take you directly to How Do You Want to Pay . Put in the employees account and bank routing number. Click Done and Save .
Click on Self-Setup , and QuickBooks will invite the employee to input their information. (Note: when Self-Setup is activated, you cannot make changes to some personal information. You can deactivate this at any time.)
Self-Setup lets your employees input their personal and banking information. (Source: QuickBooks demo on YouTube)
Step 4: Send Your First QuickBooks Direct Deposit
After your business bank information has been confirmed and all of your employees data has been entered into QuickBooks Payroll, you can start sending electronic payroll deposits. You can enjoy same- or next-day deposits, depending on your chosen plan.
To send a same-day direct deposit, you must submit payroll by 7 a.m. Pacific time on the date you want the employee to receive payment. For next-day payroll services, you have to process payroll by 5 p.m. Pacific time one business day before payday. (So, for Monday, you need to submit by 5 p.m. Friday)
Differences in Setting Up Direct Deposit for QuickBooks Desktop Payroll
If youre a QuickBooks Desktop Payroll user, the overall process to set up direct deposits for your business is the same. However, the systems menu and/or button selections are just a little different, plus there are a few extra steps.
For example, to connect your business bank account, you go to the Employees menu, then My Payroll Service , and then Activate Direct Deposit . From there, you add your company, principal officer, and bank account information just as you do with QuickBooks Online. However, you will need to manually add the information.
Getting to the direct deposit signup is a little different from QuickBooks Online. (Source: QuickBooks demo on YouTube)
This is where the process diverges from QuickBooks Online. You need to connect to your account through QuickBooks, which may require additional verification. You also need to select a PIN that will be used whenever you process payroll. Just like when manually entering account information with QuickBooks Online, QuickBooks Desktop will send a test deposit within two days, and you will need to verify the deposit in QuickBooks.
You dont need to use decimal points when putting in the deposit amount for verification. (Source: QuickBooks demo on YouTube)
In setting up each employee for direct deposit, you open each staff record through the Employee Center .
- Click on Employee Center .
- Double-click on the name of the employee.
- Click on the Payroll Info tab, then the Direct Deposit button.
- Select Use Direct Deposit and then enter the bank account information for where the money should be deposited. As always, double-check that the numbers match what your employee gave you, and be sure you have a signed consent form.
Although a payroll service provider can make paying your employees much easier, you still need to know the basics. Check out our tips on how to get the best payroll training to help.
What Sets QuickBooks Payroll Direct Deposit Apart
While most payroll software providers offer a direct deposit feature, most usually have a standard two- to four-day processing period. This means that you have to initiate the payment two to four days before the employee will actually receive it. With QuickBooks Payroll, you can send same- and next-day direct deposits at no extra cost, depending on the plan you chooseno prior approval needed.
However, QuickBooks may put you on a five-day direct deposit plan. If that is the case, you need to manually request a faster time, submitting six months of financial data. You may also need a five-day direct deposit plan if your payroll goes beyond your direct deposit limit, such as for holiday bonuses. Talk to your QuickBooks representative in these cases.
Reconsidering QuickBooks but arent sure how to judge if another service is better? Check out our article on finding the best payroll service for you.
Bottom Line
By following four simple steps, you can easily set up your QuickBooks Payroll direct deposit. Just be sure to have all of your company and bank account information, including your employees bank account details, ready to prevent processing delays. Once you have successfully completed the setup process, you can start sending same- or next-day paychecks to employees.
Visit QuickBooks Payroll
How does QuickBooks work for direct deposit
How do I set up direct deposit
How to Set Up Direct Deposit
- Get a direct deposit form from your employer.
- Fill in account information.
- Confirm the deposit amount.
- Attach a voided check or deposit slip, if required.
- Submit the form.
How do I set up direct deposit from a vendor in QuickBooks
QuickBooks Desktop Payroll Assisted
- Open the Vendor Center.
- Select a vendor and double-click their name.
- Select the Additional Info tab, then select the Direct Deposit button.
- Enter your Direct Deposit PIN and select Continue.
- Follow the on-screen instructions until you get to the Confirmation screen.
Does QuickBooks payroll have direct deposit
In QuickBooks Desktop Payroll, you can create and send direct deposit paychecks to your employees . Your payroll must be processed and sent to Intuit prior to your paycheck date in order to guarantee your direct deposits process on time.