Direct Deposit is an easy way to save your time on QuickBooks Payroll. If you are a new user in QB Payroll and you don’t understand how to set up Direct Deposit in QuickBooks Payroll, don’t worry. In this blog, everything is explained about Direct Deposit in QB Payroll and if you want more information about it, then you can contact our QuickBooks Payroll Support team.
What is Direct Deposit in QuickBooks Payroll?
QuickBooks Direct Deposit is the part of QuickBooks Payroll. QB allows you to use Direct Deposit for both employees and vendors. It also helps you to manage all your track inventory which contains completed information in the form of statements. You can pay your employees without the hassle of writing or printing Checks.
What Are The Requirements For Initial Set up of Direct Deposit In QuickBooks Payroll?
- Firstly, click on the Settings icon, then select Payroll Settings.
- From Payroll, choose Direct Deposit.
- Now check set up direct deposit
- Click on Yes option.
- Enter the required fields for Employer Bank Account and Account’s Principal Officer.
- Select Continue.
- Now, you will also receive a confirmation email prompting you to verify your information.
- Once the information is verified, then you will receive another email confirming your pre-authorized debits.
How to Set up Direct Deposit?
All the given steps are very easy and simple so you can set up direct deposit. If you want the instant solution you can contact our QuickBooks Support team. Our expert team solved all types of queries.
Step 1: Enter Company Details
First, verify your company information, including legal name, address, EIN and, industry.
Step 2: Enter your bank information
Next, you have to enter your business bank information. Then select the bank account from which you want to pay employees. Indicate whether it is a checking or savings account and enter the legal name, routing number and, an account number associated with the bank account. Finally, agree to the terms and conditions at the bottom of the screen.
Step 3: Set security limits
As an additional security measure, QuickBooks will now enter you into three security checks. Use the drop-down menu and choose the most accurate option for the business.
Step 4: Activate your Direct Deposit
To verify your bank account, QB will charge you two small verification amounts. Once you see these charges on your banking records, you can officially activate your direct deposit amount.
Step 5: Verify direct deposit
Once you see two verification charges in your bank records, activate Employee> My Payroll Services> Direct Deposit. Input the two amounts and then click on Next to verify your bank account.
Step 6: Enter Employee Direct Deposit Details
Click Use Direct Deposit for this Employee box and enter the following details: bank name, account number, account type, and routing number. You can also choose whether to deposit the entire amount directly or divide the amount. When done, click OK and then click OK on the Employee screen to save the information correctly.
Step 7: Run your payroll
Now you are ready to run payroll using direct deposit. Then follow the instructions given first to run the payroll. When you arrive at the last screen, send it to your employees to pay via direct deposit.
Step 8: Enter Direct Deposit PIN
Direct deposit pins are helpful for security purposes. You will be provided with a direct deposit PIN which you will have to input to verify the transaction. this will make sure of the security breach.
Step 9: Print Pay Stubs
Now if you have paid to your employees using direct deposits, then you do not forget to print the payment stubs. To print pay stubs in QB payroll – go to File, then Print Forms and then Pay Stubs.
How to edit direct deposit information?
- You should enter your direct deposit PIN when notified.
You must edit the bank account information before creating a paycheck for the employee. Paychecks created before you updated the employee’s account information will be deposited to the old bank account. If you want to avoid this, you can follow these steps such as:
- First of all, open the paycheck and navigate to the Paycheck Detail window.
- Then uncheck the Use Direct Deposit option on the paycheck detail.
- Click Save and then select Save & Close.
- Again open the paycheck and choose the Use Direct Deposit option.
- After that, make sure to save it.
How to remove direct deposit ?
- Firstly, select Employees and then click on Employee Center.
- Double-click on the name of the employee you want to edit.
- Select Payroll Info tab.
- Then click on the Direct Deposit button.
- Now select to clear the box Use Direct Deposit for: this employee.
What Are The Benefits For Employers In QB?
- Cost savings and managing the cash flow.
- Low risk of check fraud because it will help you.
- More control over payroll and all kinds of payroll expenses.
- Timely payments of salary checks, even when employees are away.
- Reduced bookkeeping because of immediate payments into employee accounts.
- Online transaction reports will be available immediately
Frequently Asked Questions
1.Do direct deposits have limits?
Ans In order to protect against fraud, your account have a limit on the amount of money you can send with direct deposit. If you are also planning on running a larger than normal payroll for things such as bonuses or pay raises, in that case you can also request an increase.
2.Can I pay anything else with direct deposit?
Ans You can only use Intuit’s direct deposit services to pay your employees or contractors. If you want to pay any other company expenses, then you will need to use another method of payment. In case of contractors, you can only pay direct deposit into a single savings or checking account.
In this blog, there are some steps that guides you how to set up your Direct Deposit in QuickBooks Payroll. This blog will be helpful for your business and your queries. Stay connected with our QuickBooks Support Phone Number to get more information about QB Payroll and our support service.