Direct deposit automatically deposits your employees' or contractors' pay into their bank account (checking or savings) or onto a pay card on payday. Once they're set up for direct deposit, all you need to do is submit the checks to Intuit and we'll do the rest.
With QuickBooks Full Service Payroll's free Same-Day Direct Deposit, you can submit payroll as late as 7am PT the morning of payday, and your team will be paid by the end of the day.
Here are some of the most frequently asked questions about direct deposit:
How do I set up direct deposit for my employees?
- QuickBooks Full Service Payroll: See how to set up an employee with direct deposit.
- Intuit Full Service Payroll: See how to set up and edit direct deposit for employees in IFSP.
How do I set up my bank account?
You must link a bank account to your online payroll account
Can I use an international bank account?
No. International bank accounts cannot be used for the company bank account or for an employee or contractor direct deposit account. International ACH transactions (IATs) have strict reporting requirements that we do not support. Our service cannot be used to make any transfers that require IAT reporting.
What are the fees associated with direct deposit?
Direct deposit is free with your payroll subscription.
How far in advance do I need to submit direct deposit payroll?
- QBFSP: You can approve direct deposit on a business day before 7:00 an for the employees to be paid the same day.
- IFSP: All direct deposit payrolls must be submitted before 5:00 pm PT, two banking days before the pay date.
What if the paycheck date lands on a federal banking holiday?
To allow for federal banking holidays like Labor Day or Thanksgiving, you might need to send payroll a day earlier than usual. Doing so will help you to comply with the Fair Labor Standards Act and ensure timely payroll tax payments. Please see Direct deposit processing & banking holiday timelines for additional information.
What happens if I submit payroll after the cutoff time?
Your employee or contractor is paid the following banking day. Alternatively, if you missed the deadline, you can create paper checks to ensure payroll is issued timely.
What happens if I create my direct deposit early?
Regardless of when you run direct deposit payroll, funds start to process 2 banking days prior to the pay date and are deposited in your employee/contractor’s bank account on pay day.
When does my employee/contractor receive their funds?
Funds normally appear in your employee/contractor’s account early in the morning. However, the receiving bank ultimately has the final say, and funds could appear as late as 11:59 pm PT on pay day.
How can I check on the status of a check for an employee?
- Locate the check.
- QBFSP: Select Workers then Paycheck List.
- IFSP: Select Home then View Paycheck List.
- See Status column:
QuickBooks Full Service Payroll
Intuit Full Service Payroll
- Scheduled:Payroll has been submitted
- Processing:Paychecks can no longer be edited
- Processed: Direct deposit information has been transmitted to your employees' bank
- Canceled:Direct deposit of funds will not be executed
- Returned:Paycheck was returned due to an error or fraud
- If your employee/contractor does not receive their direct deposit and the pay day has passed, contact us. We cannot trace the direct deposit until after the check date has passed.
Processing and troubleshooting
Can I turn off direct deposit for just one check?
Yes. Changes only affects this payroll. Next time you create a paycheck for the employee, direct deposit is reenabled. If you want to make a permanent change to the employee's pay method, edit the employee's pay method details.
Can I delete a direct deposit paycheck?
Direct deposit paychecks can be deleted as long as the submission deadline (3 pm PT on the day you submit payroll) has not passed. After this, you can no longer delete a direct deposit check on your own.
An Intuit Full Service Payroll agent may be able to delete a direct deposit check up until 5 pm PT, two banking days before the pay date. Please contact us if you’re still within this time frame.
Can you reverse the funds I deposited into my employee or contractor's account?
Due to additional risks associated with late returns and the fact that reversals against individual accounts can be rejected for up to 60 days, it is our policy to not attempt reversals. You are in the best position to collect the funds back from the employee, even if the employee is terminated.
We only attempt a reversal if the following criteria are met:
- You've exhausted all methods to retrieve the funds directly from the employee.
- The settlement date is within 5 business days.
- You agree to a $25 fee for each reversal attempt.
See Reverse a Direct Deposit for more info and steps on how to submit a direct deposit reversal.
To resolve the issue in your Intuit Full Service Payroll account, contact payroll support to void the check. You can then recreate the check as a manual check or attempt another direct deposit.
I received an error message that my direct deposit is larger than normal and to call customer support.
If your total direct deposit net for all employees exceeds your established daily credit limit with us, see Request a direct deposit increase to request an increase. You can also modify your payroll to be paid on different days, or pay some employees by paper check to get under the limit.