Set up QuickBooks Direct Deposit and Make Payments Timely
The QuickBooks direct deposit is a method to transfer funds from one account to another digitally. Direct deposit allows you to carry out staff payments effortlessly. It’s thus a great way to minimize time on payroll-related tasks.
Through QuickBooks, you can use direct deposit for not only your staff but also vendors. Although, if you choose the latter option, it may cost you a bit more but is worth trying if you really need it.
There’s no need to be physically present while transferring paychecks to your employees. Moreover, setting up the direct deposit is a seamless process. Let’s dive deep into how to configure it and set it up. Not only that, but you will also find what to do when you cannot set it up and solutions to common direct deposit issues.
Steps to Find the QuickBooks Payroll Service You Use
Before you start the QuickBooks direct deposit setup process, you must know the QuickBooks payroll services you are using. Here are the points to follow in order to find precisely the payroll product you use.
- Use the following links to access your payroll.
- https://iop.intuit.com is for Online Payroll Enhanced.
- https://fullservicepayroll.intuit.com is for Online Payroll Full Service.
- https://qbo.intuit.com is for QuickBooks Online Payroll.
If you come across your payroll by tapping on the green QB icon, it means that you employ QB Desktop payroll.
- Now you can find your particular QuickBooks Online or Desktop Payroll service. QB Online Payroll has Core, Elite, or Premium services. QB Desktop Payroll has Enhanced, Standard, Basic, or Assisted services. To find yours, log in to the QB Desktop company file as the payroll admin. Now, choose ‘Employees‘ followed by ‘Payroll Center.’
- In the ‘Payroll’ tab, you will see the service you are using. It will be under ‘Subscription Statuses.’
Setup Direct Deposit QuickBooks for Employees
Before you begin the procedure to set up, ensure that all accounts are in the United States. They must accept ACH transactions.
Connect your payroll account to the direct deposit
The first step is to link your payroll account with the QuickBooks direct deposit. Follow these steps to make the connection between your bank account with the direct deposit service.
- Open QuickBooks and sign in with the admin username and password.
- Now, go to the ‘Employees’ menu and choose ‘My payroll service.’
- Tap ‘Activate direct deposit‘ and choose the ‘Get Started‘ button.
- If you don’t see this button, tap ‘, I am the admin and I am the primary person who can…‘
- Select ‘Continue‘ and input your username and password of Intuit account.
- Now, click ‘Sign in.’
- Lastly, tap ‘Get Started.’
- Navigate to the ‘Business‘ tab and select the ‘Start‘ option.
- Now, input the necessary details.
- Tap ‘Next‘ and input the principal officer data.
- Choose ‘Next‘ followed by ‘Add new bank account.’
- Input the needed bank data. Verify your banking credentials.
- Generate a PIN for the purpose of dispatching the payroll to Intuit.
- Tap ‘Submit‘ after confirming it.
- Tap ‘Next‘ and choose ‘Accept and submit.’
- If you are asked, verify the principal officer’s SSN. Then tap ‘Submit.’
- You will see two messages on your screen.
- ‘Thank you for signing up to QuickBooks direct deposit‘- The message implies that your bank account isn’t correctly linked. You must follow the steps below.
- Your bank account is connected. When you view this message, it means that you can now begin entering the bank account information of your employees.
Verify your bank account
This step should only be followed by those who have signed up for Direct Deposit. It is essential to confirm your bank account so as to connect it well with QuickBooks payroll direct deposit.
- You must inspect your bank account for a 1-dollar debit from Intuit QB payroll in 48 hours.
- After that, sign in to QuickBooks as an admin. Navigate to the ‘Employees’ menu and opt for ‘My Payroll Service.’
- Tap ‘Activate Direct Deposit‘ and log in to your account.
- Enter the Amount that has been debited from your bank two times and hit ‘Verify.’
- Confirm your payroll PIN and hit ‘Submit.’
- Lastly, tap ‘OK.’
Enter the account information of your employees
Now you must input data in QuickBooks taken from the direct deposit authorization forms. Here are the points you must follow.
- Firstly, get a Direct Deposit form QuickBooks from your employees.
- Head over to the ‘Employees’ menu and choose ‘Employee Center.’
- You will find the list of employees. Tap anyone and navigate to the ‘Payroll Info’ tab.
- Tap the ‘Direct Deposit’ button.
- Below the ‘Direct Deposit’ window, opt for ‘Use Direct Deposit for (Employee’s name).’
- Now select how you need to pay the employee. You can deposit the paycheck in any of the accounts and input their bank data.
- After choosing the two accounts option, enter the sum that will go into their first account. You must mention it under the ‘Amount to deposit’ field.
- Save the information by tapping ‘OK.’
What to Do When the Direct Deposit Setup Does Not Work?
This problem usually occurs when the process of direct deposit verification does not take place properly. You can begin by inspecting your direct deposit status from the Payroll settings. By looking at its status, you can find if it’s active or not. Here are the points you need to follow for it.
- Navigate to the gear icon.
- Now, under ‘Your Company,’ tap ‘Payroll Settings.’
- Under the ‘Bank Accounts’ section, choose ‘Company.’
There are primarily three kinds of statuses. They include the following.
- Failed – It means that you need to update your bank account. It has not been verified.
- Pending – It means that your bank account is being readied. You will get the data about test transactions.
- Connected/Active – It means that your bank account details have been linked to sent payroll with QuickBooks Online. You have the option to update it.
- Waiting for verification – You can enter a test transaction if you want.
If you see the ‘Pending‘ status, it means that QuickBooks hasn’t yet verified your account information. Another reason behind this status can be that although the funding bank account is verified, it still has to return to the direct deposit setup.
You can also encounter this status if you haven’t inputted the bank data of your employee.
What Is QuickBooks Direct Deposit Reversal?
It is possible to pay an employee by mistake. If this happens and you cannot collect the money from the worker, you can request a direct deposit reversal. You can request it five days from the date you paid.
Conditions when you can request a direct deposit reversal
There are four cases in which you can request a reversal. They are as follows:
- The entire Amount exceeds $50.
- The request can only be made between the third and fifth days post the pay date.
- The bank account from which you will get the funds back should be in your employee’s profile.
- Your reason for requesting a reversal is in line with the EFT or ACH laws.
Steps to make QuickBooks direct deposit reversal request
Before making a request, ensure that you make it between the third and fifth day after payment. Follow these steps to make a successful request.
- Open the form of ‘Direct Deposit Reversal.’
- Now, choose ‘New Request.’
- Fill in the relevant data along with the transaction information.
- Tap’ Save.’
- After your request gets approved, void the paycheck in the payroll records.
Soon after, you’ll get a notification regarding the approval or rejection of your request. If it’s approved, you’ll get an email wherein the processing time and further steps will be mentioned. It will take up to 9 days for the reversal process to complete.
What Is the QuickBooks Direct Deposit Cost?
There aren’t any extra charges for direct deposits if you employ QuickBooks Online Payroll. However, QuickBooks Desktop users need to pay a $1.25 per paycheck fee.
If you process QuickBooks Direct Deposit for a contractor, the cost will be $2 monthly. But if you don’t make this payment to a contractor for a particular month, you won’t be charged.
Resolve QuickBooks Direct Deposit Issues Effectively
Many users face various problems with direct deposit in QuickBooks. Below is a stepwise explanation of how to resolve the most common problems.
Fix Direct Deposit Activation Not Working
This error arises when the user is trying to set up a direct deposit for another QuickBooks Desktop client. The error message says, “Something’s not quite right. Try again later and it should work.’ The cause behind this problem is usually outdated QuickBooks software. Follow these steps to update QB and activate the direct deposit payroll in it.
- Navigate to ‘Help‘ and select ‘Update QuickBooks.’
- Now, click on the ‘Update Now’ tab.
- Choose the checkbox of ‘Reset Updates’ and tap the ‘Get Updates’ button.
- To confirm the reset, click ‘OK.’
- Now, start QuickBooks again.
- Tap the ‘Install Now‘ button when you see the update service message.
Once the update installs, activate your QuickBooks direct deposit payroll through the steps below.
- Open the ‘Tech Help’ window by accessing the F2 screen and then tapping F3.
- Select the ‘Open file‘ tab. Now, open it by double-tapping the ‘qbw.ini‘ file.
- Find the qbw.ini file part that displays ‘[QBLICENSE] PAYROLL_BUNDLE_STATE=Y.’
- Modify ‘Y‘ to ‘N‘ and select ‘File‘ followed by ‘Save.’
- It will save the qbw.ini file with the modifications you’ve made.
- Go back to QuickBooks and access the ‘WF Invites’ again.
- When you go to the payroll activation screen, follow the activation steps from a to f. However, at this time, don’t change ‘Y‘ to ‘N‘ like you did in the d step. Instead, fully delete the ‘[QBLICENSE] PAYROLL_BUNDLE_STATE=Y’ section.
2. Unable to connect to the bank and to find bank account connection declined.
If this error arises, it is highly likely that the account information you gave was not approved. The new compliance regulations have made it mandatory to gather the following data from the QuickBooks Direct Deposit setup.
- Name and address of the business and EIM.
- The security number of the principal officer, date of birth, and home address.
- Online bank credentials.
After that, connect your bank account by following this process.
- Head over to ‘Employees‘ followed by ‘My Payroll Service.’ Then go to ‘Activate Direct Deposit.’
- Choose ‘Get Started.’
- Tap ‘Start‘ present on the ‘Business‘ tab. After entering the required information, tap ‘Next.’
- Enter the principal officer data and tap ‘Next.’
- Hit ‘Add New Bank Account.’
- Now input your bank’s name and online bank credentials. Make a PIN and confirm it twice. Then select ‘Submit.’
- Choose ‘Next‘ followed by ‘Accept and Submit.’
- Now in two business days, you will find a debit of less than dollar 1 in your bank account from Intuit. Once you see it, sign into QuickBooks as admin and choose ‘Activate Direct Deposit.’
- Log into your Intuit account and input the debit amount two times.
- Choose ‘Verify.’
- Input your payroll PIN. Choose ‘Submit‘ followed by ‘OK.’
3. The employee didn’t get a direct deposit made in QuickBooks Desktop payroll.
When your employee does not get their direct deposit on time, it’s important to inspect the status of the payroll you sent. Check whether the employee who didn’t get direct deposit was included in the payroll or not.
You can view and update the direct deposit bank account data of your employee through these steps.
- Go to the ‘Employees’ menu of QB Desktop. Here, select ‘Employee list.’
- Double-tap the ‘Name of the employee‘ whose payroll data you wish to modify.
- Now, choose the tab ‘Payroll Info.’ After that, select the ‘Direct Deposit’ option.
- Review the information. if required, update the fields of ‘Account No.‘ and ‘Routing No.‘
- Now, tap ‘OK‘ two times.
NOTE – Intuit always sends the payroll via the bank account data of your employee in your QB Desktop when you make the payroll. So, modifying the direct deposit data in your employee record won’t have any impact on the payroll you made before the edit.
The QuickBooks direct deposit simplifies budgeting for the employees. Just adhere to the instructions in this article to set it up efficiently. You don’t need to worry if you face any issues in between the process. We have laid down all the steps to rectify them as well. But if you want to learn more about it, feel free to speak to QuickBooks technical support experts.