How to Set up Direct Deposit in QuickBooks for Company Payroll

We all know that direct deposit saves valuable time in payroll. So now every QuickBooks users want to pay their employees and contractors through QuickBooks direct deposit. But the matter is that, ‘How to set up direct deposit in QuickBooks for company payroll?’. 

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In this blog, you will be able to know the procedure of QuickBooks direct deposit payroll, so let’s begin:  

Set up Procedures of QuickBooks Direct Deposit Payroll in Different Products: 

Here in the below, we have provided some methods to set up the direct deposit in QuickBooks payroll for different Intuit and QuickBooks payroll services. You just have to choose your product and follow the steps carefully for the direct deposit of paychecks.   

How to Set Up Direct Deposit in QuickBooks Desktop Payroll

Those who are using QuickBooks Desktop payroll follow the below steps to set up QuickBooks direct deposit for company payroll. 

Activate the direct deposit for QuickBooks Desktop Payroll

  • First of all, visit the ‘Employees’ menu and click the ‘My payroll Services’ option from the list.
  • After that click on the ‘Activated Direct Deposit’ option. 
  • Then complete and review the QuickBooks direct deposit form.
  • After that click on the ‘Edit’ option from the verify your company section.
  • Now it’s your time to fill out all the required fields including the bank account details.
  • The bank details will be used in the direct deposit transaction and fees.
  • Now click on the ‘View Agreement’ option.
  • Read the agreement carefully, and click on the ‘I have read and agree to the terms and service agreement’ checkbox.
  • After that, some security questions will appear on your screen, provide the answer to the questions in the ‘Check Security Limits’ section.
  • Then click on the ‘Submit’ option.
  • Remove all the information, if nothing happens after selecting the ‘Submit’ option.
  • After that renter, the information manually, and click the ‘Submit’ option again.
  • Now you can see instruction in the confirmation page, and you can also print it.
  • Click on the ‘Return to QuickBooks’ option.    

If in case, you are unable to see the ‘Activate Direct Deposit’ option, then follow the below steps:

Generally, in this case, the EIN in the QuickBooks company file was used to sign up for the direct deposit but was canceled. 

  • Go to the ‘Employees’ tab and click on the ‘My Payroll Service’ option.
  • Then click on the ‘Account/Billing’ information.
  • Then sign in with the credential of Intuit account.
  • Click on the ‘Activate’ option and follow the instructions on the direct deposit box.

How To Verify Direct Deposit in QuickBooks Desktop payroll 

To verify the direct deposit in QuickBooks Desktop you have to follow the given method, but before that, you have to know something about the verification of direct deposit in QuickBooks Desktop.

Intuit makes 2 small transactions, 1 deposit, and one withdrawal amount less than $1.00, when a user provides his/her initial bank information. You have to check it. Go to the bank statement and search for the small transaction done by Intuit. Then enter the amount to verify the account in QuickBooks Desktop. 

  • Go for the ‘Employees’ menu and select the ‘My Payroll Service’.option from the list.
  • After that click on the ‘Activate Direct Deposit’ option, and the ‘Enter Test Debits’ option.

Set up the bank account details of employees in QuickBooks:

  • If your employees like to get their paychecks 2through direct deposit, then you have to collect their bank accounts details.
  • And written permission also needs to deposit their paychecks direct.  

Pay your Employees: 

  • After the complete set up of the direct deposit, create paychecks.
  • Then send the direct deposit to Intuit, it may take 2 days to deposit paychecks to the bank account of employees.

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How to Set Up Direct Deposit in QuickBooks Online Payroll 

If you are a user of QuickBooks Online Payroll then follow the below procedure for QuickBooks Online direct deposit:

Choose the pay type of your employees’ for direct deposits 

  • To choose the pay type of your employees’, first of all, visit for the ‘Workers’ option and then choose the ‘Employees’ option.
  • Now choose the Employee’s name and then click on the ‘Edit’ icon.
  • Then choose an option (Direct deposit, Direct deposit to two accounts, Direct deposit with balance as a check) for the question (How do you want to pay this employee?).
  • From the Employees voided check, enter the routing and account numbers, and click on the ‘Done’ option.
  • Then connect your bank account, it may take 1-3 days to set up the direct deposit.
  • Verify the bank account, and pay your employees by following the same process of the above QuickBooks Desktop Payroll.

How to Set Up Direct Deposit in Intuit Online Payroll 

Enable the direct deposit

Enable direct deposit for Employees 

  • Choose the employees’ pay method from the ‘Employees’ option.
  • Then choose one of the options (Direct deposit, Direct deposit to 2 accounts, Direct deposit with balance as a check).
  • From the employee’s voided check, enter the bank account, and click the ‘Ok’ option. 

Enable direct deposit for Contractors

  • Go for the ‘Employees’ option, and choose the contractor’s pay method.
  • Click on the ‘Direct deposit’ as the contractor’s pay method in the payment information section.
  • Then click the ‘Ok’ option, and enter the bank details from the contractor’s voided check.

Connect and verify the bank account 

In the next step, connect the bank accounts, it may take 2 days to set up, and verify the test transaction for your account. At last, pay your employees and contractors

How to Set Up Direct Deposit in Intuit Online Payroll Full Service

If you are using Intuit Online Payroll Full Service, and want to paychecks through direct deposit, then follow the below steps: 

Enable direct deposits for both employees and contractors

For Employees:

  • Go for the employees and select the employee’s pa method.
  • Switch pay method by choosing one option, after clicking on the ‘Edit’ option.
  • Put the bank details from the voided check of employee’s.
  • Save all the changes.

For Contractors:

  • Follow the same process as Intuit Online payroll, click on the ‘Employees’ option, and then select the pay method of contractor’s.
  • Click on the ‘Edit’ option, and then on the ‘Direct Deposit’.
  • Enter the bank details from the voided check, and click ‘Ok’.

Connect and verify the bank account 

Connect and verify the bank accounts, and pay the employees and contractors.

The Final Word

So this was the blog, where you can recollect the knowledge regarding the setup of QuickBooks direct deposit for company payroll. We tried our best to put information in this blog, hope you like it and you can follow the above steps easily without facing any kind of issues, Further, if you have any kind of doubts related to this blog or any queries then get our ProAdvisor support through the toll-free number +1-844-405-0904.

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How to Set up Direct Deposit in QuickBooks for Company Payroll