After activating direct deposit for your company in QuickBooks Desktop Payroll, you can set up, edit, and remove direct deposit service for your employees.
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.
RemindersConsider the following information before setting up an employee for direct deposit:
- You must ALWAYS enter direct deposit bank account information from a check, not from 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.
- Employee's 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.
Set up an employee for direct deposit:
- Select Employees and choose Employee Center to open your employee list.
- Double-click the employee's name.
- Select Payroll Info tab.
- Select Direct Deposit button.
- In the Direct Deposit window, select Use Direct Deposit for [employee's name].
- Select whether to deposit the paycheck into one or two accounts.
- Enter the employee's financial institution information (Bank Name, Routing No., Account No., and Account Type).
- 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 Amount to Deposit field. The remainder goes to the second account.
- Select OK to save the information.
- If you are using QuickBooks Desktop 2016/2017, you may be asked to enter your direct deposit PIN.
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 check mark next to Use Direct Deposit, add the check mark 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.
Edit an employee's direct deposit informationYou can update the employee's bank account information on the same page where you set it up.
- If you are using QuickBooks Desktop 2016/2017, you may be asked to enter your direct deposit pin.
- Open the paycheck and go to the Paycheck Detail window.
- Uncheck the Use Direct Deposit option on the paycheck detail and click Save > Save & Close.
- Open the paycheck again and select the Use Direct Deposit option. Be sure to Save.
Remove direct deposit permanently from an employee's profileIf you no longer want to pay an employee for direct deposit, you can remove them from the set up.
- Select Employees and choose Employee Center.
- Double-click the name of the employee whose profile you want to edit.
- Select Payroll Info tab.
- Select Direct Deposit button. Select to clear the box Use Direct Deposit for: this employee.
Disable direct deposit temporarily on a paycheck onlyIf you want to create a one-time regular (non-direct deposit) paycheck for an employee who is normally paid through direct deposit, see Change a direct deposit paycheck to a regular paycheck in QuickBooks Desktop Payroll.
FAQs on foreign bank accountsTo prevent unnecessary delays or rejections for electronic payments, we ask you to certify that your payment does not ultimately originate from and is not ultimately being sent to a foreign bank account.
Why are we asking for this?
New bank reporting requirements necessitate additional information for electronic payments that are made to or from foreign bank accounts. Since these requirements are relatively new, most senders and recipients of electronic payments, including most state agencies, do not yet support the collection of this information and do not, therefore, accept electronic payments that originate from or are sent to foreign bank accounts.
What does "originate from" and "sent to" mean?
Payments are considered to originate from a foreign bank account if your bank is not a U.S.-based bank or if funds in your U.S.-based bank account come from electronic transfers from a foreign source.
Payments are considered to be sent to a foreign bank account if the recipient's bank is not a U.S.-based bank or if the recipient has an existing agreement with a U.S.-based bank to automatically transfer funds from the recipient's account to a foreign bank.
What should I do if my transaction is from or to a foreign bank account?
For payments to or refunds from a state agency, contact the agency to see what alternatives are available. Click here and choose the state to find contact information.
For payments to employees or contractors, consider another payment option such as writing a check or using a reloadable debit card, or contact us to discuss options for your payroll service.
What if I am not sure if my transaction is from or to a foreign bank account?
Your financial institution will be able to provide the most accurate information on whether or not a transaction is affected by these new restrictions on transfers from or to foreign bank accounts.