How to Activate Direct Deposit in QuickBooks Payroll ? – Step 1: Connect your bank account

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Before setting up and running QuickBooks payroll direct deposit. QuickBooks Online payroll direct deposit is a popular choice. Direct deposit is a benefit for employers and employees alike. This guide explains how to set up the QuickBooks Payroll direct deposit function. Setting up QuickBooks payroll direct deposit makes processing payroll efficient. The vast majority of employees prefer and receive payroll via direct deposit. Using QuickBooks payroll direct deposit will save you time and money.

This article is for business owners and accountants looking to process payroll through QuickBooks Online. Direct deposit benefits businesses in several ways: You have more control over payroll processing and expenses. Direct deposit is a paperless payroll process, saving the time and expense associated with printing checks. Direct deposit payments are timely.

Your employees receive payment even if they are out of the area. There is no lag in check cashing, meaning bank reconciliation is simplified. It decreases the risk of fraud and lost or stolen checks. Before setting up and running QuickBooks payroll direct deposit If you have previously run payroll through QuickBooks Online, setting up direct deposit requires just a few additional steps. You should also complete the following tasks: Ensure your business information is complete. Prepare everything needed to pay your team.

Ensure your tax information is accurate. If you have completed these tasks, green checkmarks should appear in QuickBooks Online. Once you have completed the above steps, take the following steps to enable direct deposit. Select Start and Connect your Bank. Have each employee complete an authorization for direct deposit form.

Select Employee and Contractor Setup. Select Authorization for Direct Deposit. Select Bank Verification and then View. Pay your employees via QuickBooks Online direct deposit. Trish Petak. Trish Petak is a business educator. She holds a doctorate of business administration degree and has been a subject matter expert and writer for accounting, finance, and management topics for over 8 years. Grow Your Business. Updated Find out what qualities and costs you should look for when Paycards vs.

Direct Deposit: Which Is Right for Is a paycard or direct deposit a better payment method for your Gusto vs. Trying to choose between the Gusto and QuickBooks payroll Our Brands Business. Contact Us info businessnewsdaily. Keep the signed authorization forms in your employee records. Source: QuickBooks. You can enter employee information in one of three ways—add it when you add a new employee, update it before running payroll for an existing employee, or have the employee add their own information.

Regardless of how you do it, be sure you have a consent form and that you double-check the numbers. Putting in the wrong numbers can delay your employee getting paid on time. QuickBooks Payroll will let you download employee information from other payroll services or spreadsheets. Here, we show you how to do an individual employee. You can add account information from the employee information section or from payroll.

Click Done and Save. Click on Self-Setup , and QuickBooks will invite the employee to input their information. Note: when Self-Setup is activated, you cannot make changes to some personal information.

You can deactivate this at any time. Self-Setup lets your employees input their personal and banking information. You can enjoy same- or next-day deposits, depending on your chosen plan. To send a same-day direct deposit, you must submit payroll by 7 a. Pacific time on the date you want the employee to receive payment. For next-day payroll services, you have to process payroll by 5 p.

Pacific time one business day before payday. So, for Monday, you need to submit by 5 p. For example, to connect your business bank account, you go to the Employees menu, then My Payroll Service , and then Activate Direct Deposit. From there, you add your company, principal officer, and bank account information just as you do with QuickBooks Online. However, you will need to manually add the information.

Getting to the direct deposit signup is a little different from QuickBooks Online. This is where the process diverges from QuickBooks Online. You need to connect to your account through QuickBooks, which may require additional verification.

You also need to select a PIN that will be used whenever you process payroll. Just like when manually entering account information with QuickBooks Online, QuickBooks Desktop will send a test deposit within two days, and you will need to verify the deposit in QuickBooks. In setting up each employee for direct deposit, you open each staff record through the Employee Center.

Although a payroll service provider can make paying your employees much easier, you still need to know the basics. Check out our tips on how to get the best payroll training to help. What Sets QuickBooks Payroll Direct Deposit Apart While most payroll software providers offer a direct deposit feature, most usually have a standard two- to four-day processing period.

This means that you have to initiate the payment two to four days before the employee will actually receive it. With QuickBooks Payroll, you can send same- and next-day direct deposits at no extra cost, depending on the plan you choose—no prior approval needed. However, QuickBooks may put you on a five-day direct deposit plan.

If that is the case, you need to manually request a faster time, submitting six months of financial data. You may also need a five-day direct deposit plan if your payroll goes beyond your direct deposit limit, such as for holiday bonuses. Talk to your QuickBooks representative in these cases. Check out our article on finding the best payroll service for you. Bottom Line By following four simple steps, you can easily set up your QuickBooks Payroll direct deposit.

Once you have successfully completed the setup process, you can start sending same- or next-day paychecks to employees. Find Charlette On LinkedIn. Charlette Beasley is a writer and editor at Fit Small Business focusing on payroll. With more than a decade of accounting and finance experience, Charlette has worked side-by-side with HR and accounting leaders to establish and help implement payroll best practices, controls, and systems.

Her experience ranges among small, mid-sized, and large businesses in industries like banking and marketing to manufacturing and nonprofit. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Fit Small Business content and reviews are editorially independent.

 
 

 

Set up your company payroll for direct deposit – Step 2: Get a direct deposit authorization form

 
Select the employee’s name. Select Payroll Info tab.

 
 

Set up direct deposit for employees

 
 
Select the employee’s name. Select Payroll Info tab.