Overview

This article explains how to set up, edit, and remove Direct Deposit service for your employees.

Note: Reminder: You need to send your payroll data 2 banking days before the checkdate, before 5pm PST, to make sure your money gets to your employees on time. Intuit withdraws money from your account 1 banking day before the check date, and then sends it to your employees accounts on the check date.

Details

Employees who want direct deposit must fill out a Direct Deposit Authorization form and provide you with a voided check from their bank account (not a deposit slip). The authorization form and voided check are for your records only; you do not need to submit them to QuickBooks Desktop.

To set up an employee for direct deposit:

  1. In QuickBooks Desktop, choose Employees > Employee Center to open your employee list.
  2. Double-click the employee's name.
  3. Click the Payroll Info tab.
  4. Click the Direct Deposit button.
  5. In the Direct Deposit window, select Use Direct Deposit for [employee's name].
  6. Choose number of accounts: Use 1 Account or Use 2 Accounts.
  7. Enter the employee's financial institution information (Bank Name, Routing No., Account No., and Account Type).
  8. If you chose to deposit to two accounts, enter the amount or percentage that the employee wants to deposit to the first account in the Optional Amount field. The remainder goes to the second account.
  9. Click OK to save the information.

Note: The next paycheck you create for the employee will be marked for direct deposit. If you want direct deposit on a paycheck you have already created but not sent, you must delete the paycheck and recreate it.  If the wrong direct deposit bank account is on a paycheck created, but not sent, you can also locate and open the paycheck in the register, remove the checkmark next to Use Direct Deposit, add the checkmark back next to Use Direct Deposit, confirm the correct direct deposit information has been added and save the paycheck.  Intuit cannot add Direct Deposit service to a paycheck that has already been sent.

Additional Information

 

  • You must ALWAYS input direct deposit bank account information from a check, not a deposit slip, since the information on a deposit slip is not valid for direct deposit.
  • Account information must be within the United States. Automated Clearing House (ACH) processes are different outside the United States and do not correlate with QuickBooks Desktop.
  • For pay cards, contact the card provider for routing and account number information.
  • You can update the employee's bank account information on the same page where you set it up. You must do this 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. To avoid this, you can delete and recreate the paychecks before sending them to Intuit, or you can:
    1. Open the paycheck and go to the Paycheck Detail window.
    2. Uncheck the Use Direct Deposit option on the paycheck detail and click Save > Save & Close.
    3. Open the paycheck again and select the Use Direct Deposit option. Be sure to Save.
  • Employees' money market accounts can be used for direct deposit as long as they accept ACH transactions. Ask the employee to verify with their bank whether the money market account should be tagged as savings or checking.
  • For savings accounts, the employee will need to get the account routing number from the bank or other savings institution.
  • If the employee's bank says that the account should be tagged as money market," inform the employee that QuickBooks Desktop only accepts checking or savings accounts, so they should select checking.

 

Note: You can temporarily disable direct deposit for one paycheck only, or remove direct deposit permanently from the employee's profile.

Disable direct deposit temporarily (on a paycheck only):

  1. Locate and open the paycheck.
  2. Click Paycheck Detail.
  3. Clear the Use Direct Deposit checkbox.
  4. Click OK.
  5. Remove the phrase Direct Deposit from the Memo field on the face of the Paycheck and click Save & Close.

The next paycheck created for the employee will be marked for direct deposit.

If you would like direct deposit on a paycheck already created not sent, you must delete the paycheck and recreate it.  We are not able to add direct deposit to a paycheck that has already been sent to the payroll service.

To remove direct deposit from an Employee Profile:

  1. Choose Employees > Employee Center.
  2. Double-click the name of the employee whose profile you want to edit.
  3. Click the Payroll Info tab.
  4. Click the Direct Deposit button. Click to clear the box Use direct deposit for this employee.
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