QuickBooks Direct Deposit - Online Payroll - Direct Deposit FAQ's by PosTechie

Direct deposit requirements, signup, and
activation for QuickBooks Desktop payroll
You can run payroll and pay your employees through direct deposit (DD) in QuickBooks
Desktop. To get DD service, you may sign up and activate this feature in QuickBooks Desktop
with the following steps.
Requirements to sign up for DD:
● Supported version of QuickBooks Desktop
● Active QuickBooks Desktop payroll subscription
● Federal Employer Identification Number (EIN)
● Internet access
● Bank account that can handle Automated Clearing House (ACH) transactions within the
United States
Note​: Nominal per-transaction and per-payroll transmission fees may apply. Terms, conditions,
pricing, features, service options, and support are subject to change without notice.
To sign up for DD:
1. From​ Employees ​menu, select ​My Payroll Services​, and choose ​Activate Direct
Deposit​.
2.
3. Complete and review the form. When asked for zip code in the legal company
information, enter the 5 digits only without the extension.
1. In the ​Verify Your Company Information​ section:
■ Edit the ​Legal Company Name and Address​ to add the Industry

■
Select the ​Industry ​that most closely reflects your company's main
business.
■
■
Note​: The zip code should be 5 digits only, without the extension.
Enter the owner's or principal's email address, nine-digit Social Security
Number, and date of birth (mm/dd/yyyy). This information is required due

to ​National Automated Clearing House Association ​(​NACHA​) rules
and regulations.
Edit the ​Payroll Administrator Information​ and confirm the email
address.
■
2. In the ​Enter Your Bank Information​ section, enter the bank account information
that Intuit QuickBooks Payroll debits for direct deposit transactions and fees. This
is your bank account that you use to pay your employees.

3.
4. Select the ​View Agreement​ link and read it.
5. Select the ​I have read and agree to the terms of service agreement​ checkbox.
6. In the ​Check Security Limits​ section, answer the questions provided.
7.
4. Select ​Submit ​button.
5. IMPORTANT​:​ If nothing happens after selecting ​Submit​: remove all the information on
the form including the information on the ​Edit​ links, manually re-enter the information,
and select ​Submit​ again.
6. A Confirmation page appears with your ​Next Steps​ instructions, which you can print.
7. Select ​Return to QuickBooks ​button at the bottom.
Things you must complete before you can begin paying
your employees using DD:
1. Verify your bank account

2. For security purposes, when you provide your initial bank information during signup,
Intuit makes two small withdrawals of less than $1.00 each from the bank account you
set up for direct deposit. Check your bank account for the amounts and confirm them in
QuickBooks. You are then verified as an authorized user of the account, and the bank
account is ready for authorized payroll transactions and fees. You can check article,
When I activate direct deposit I am asked to enter 2 debits, for the steps. Once your
bank account is verified, Intuit automatically refund the 2 small test debits within 7
business days from the original debit date.
3. Set up your employee's bank account information in QuickBooks​.
4. Collect bank account information from employees who want to be paid by direct deposit.
Employees must give written approval to you for direct deposit of their paychecks. You
can check article, Set up, edit, and remove direct deposit for employees for the Direct
Deposit Authorization form and how to set up the employee in QuickBooks.
5. Start creating paychecks using direct deposit.
Reminders
● You must transmit payroll information to Intuit before 5:00 p.m. Pacific time at least 2
business banking days​ ​before the check date.
● You can send to Intuit your payroll information up to 45 days in advance of check date.
● DD requires Internet access. Your QuickBooks Desktop software and DD service
provide a protected Internet connection that guards against unauthorized access to your
payroll data while it's being transmitted.
● DD can be delivered to an Intuit paycard.
● If 2 business days has passed but the check date falls on non-banking day or a Federal
Reserve holiday, the funds will be deposited in the Employee's bank account on the next
business day.
DD Processing Timeline:
1. DD is sent to Intuit before 5:00 pm PST, 2 banking days before the check date.
○ The status of the transaction during this stage is still pending.
○ You may void any previously sent paychecks or send additional paychecks if
needed.
○ At 5:00 pm PST, payroll offloads.
○ Note: Paychecks can be sent up to 45 days in advance.
○ Holiday Reminder
2. Payroll is offloaded.
○ Typically, DD payroll is offloaded 2 banking days before the paycheck date at
5:00 PM PST.
○ Intuit cannot stop the DD transaction at this point.
○ DD payroll is electronically sent to ACH (Automatic Clearing House) for
processing.

○ Intuit will debit your bank account one banking day before paycheck date which
can happen within a 24 hour window. This means that the payroll must be
transmitted and the funds available in your company bank account, no later than
5:00 PM PST 2 banking days before the check date.
○ FAQs for bank returns (NSF)
3. Funds are posted (Pay Day).
○ Funds are deposited to your employee's account on the paycheck date.
○ Time of DD posting or availability of funds is determined by the employee's bank
and is not controlled by Intuit.
○ If the paycheck date falls on a non-banking day, the funds will be posted in the
employee's bank account on the next banking day.
○ Employee's bank has until 5:00 PM local time the day of the check date to post
the funds to the employee's bank account.
○ When does direct deposit post?
Frequently Asked Questions:
How do I verify my bank account in QuickBooks Desktop?
If you have the 2 small amounts from your bank, you can enter the 2 amounts in QuickBooks
Desktop. From QuickBooks Desktop: ​Employees​> ​My Payroll Service​> ​Activate Direct
Deposit​.
How soon can I start using direct deposit?
Immediately after verifying your bank account in QuickBooks Desktop, the direct deposit service
is available to use. You can refer to the article, Set up, edit, and remove direct deposit for
employees for steps.
How do I process or send direct deposit in QuickBooks Desktop?
Process payroll or create paychecks in QuickBooks Desktop in the same way you usually do,
then send the direct deposit to Intuit.
How soon can you deposit the funds to my employees' account?
It takes 2 business banking days for Intuit to deposit the funds to your employees' bank
accounts.
● You must transmit payroll information to Intuit before 5:00 pm PST at least 2 business
banking days before the check date.
● You can send Intuit your payroll information up to 45 days in advance.
Why is the Activate Direct Deposit option missing in my QuickBooks
Desktop?

This happens if the EIN in your QuickBooks Desktop Company File has been previously signed
up for direct deposit but was cancelled. To reactivate:
1. Go to ​Employees > My Payroll Service > Account/Billing info​.
2. Sign in using your Intuit Account credentials.
3. In the Direct Deposit Box, select ​Activate ​and follow the onscreen instructions.
If you get an error when performing these steps, reach out to our QuickBooks Desktop Payroll
support for assistance.
Online Payroll – Direct Deposit FAQ
This article covers the most frequently asked questions about direct deposit (DD) for Intuit
Online Payroll and QuickBooks Online Payroll
IMPORTANT:
● Except where explicitly indicated, the term employee can refer to either an actual
employee (who receives Form W-2), or to a contractor (who receives Form 1099).
● Quickbooks Online Payroll (QBOP) and Quickbooks Online Full Service Payroll
(QBFSP) DO NOT support Direct Deposit to 1099 Contractors. Only Intuit Online Payroll
(IOP) can support Direct Deposit for 1099 Contractors.
Enrollment
How do I enroll in direct deposit?
See article Enroll in direct deposit (DD).
Can I use direct deposit without federal electronic services?
Yes. However, we recommend that you enroll in e-services to conveniently e-pay and e-file
your taxes through your payroll account. There's no additional charge for direct deposit or
e-services.
How long does it take to set up direct deposit?
On average, It takes about seven business days to set up direct deposit, including verifying
your company's bank account for security purposes.
Bank accounts
What type of funding account can I use for direct deposit?

You can only use a standard checking account for your direct deposit funding account (and
other electronic services if selected).
Are direct deposit debits one lump sum or individual amounts for each
employee?
Direct deposit transactions are individual employee debits. You'll see them as separate
entries on your bank statement.
What type of employee accounts can I send direct deposit to?
Intuit Online Payroll only allows the use of standard checking accounts, savings accounts
and some money market checking accounts. Some savings accounts may have a different
account number to be used for direct deposit. Employees should consult with their bank on
what account number to use for deposits made through Automated Clearing House (ACH).

Does your service support pay cards?
Yes. See article NetSpend Intuit PayCard.
How is the money transferred to my employees' accounts?
If you choose direct deposit, we automatically deposit your approved paychecks into your
employees' bank accounts on the pay date. Money is transferred by the Electronic Payments
Association (NACHA or ACH), a long-established electronic funds transfer system used by
banks. No money is ever transmitted over the Internet.
How do employees know if their bank accounts have been credited
correctly?
You should give your employees printouts of the pay stub you approved. On the day that the
funds are due to be deposited, employees can contact their bank to receive confirmation of
the deposit.
How is the money transferred to my employees' accounts?
If you choose direct deposit, we automatically deposit your approved paychecks into your
employees' bank accounts on the pay date. Money is transferred by the Electronic Payments
Association (NACHA or ACH), a long-established electronic funds transfer system used by
banks. No money is ever transmitted over the Internet.
Can I deposit to an employee's money market or money market checking
account?
This depends entirely on the employee's bank. While generally we do not support deposits to
standard money market accounts, direct deposit to some money market ​checking​ accounts
will work. You should ask the employee to contact their bank to verify that their account can
accept direct deposits. Note that some banks have restrictions regarding deposits and
withdraws from money market checking accounts.
Can I use a foreign account as my funding account, or deposit to an
employee's foreign bank account?
No. Intuit Online Payroll does not allow for the use of foreign accounts as company funding
accounts, nor as a valid recipient account for direct deposit.
Timing
What is the lead time for direct deposit?

The lead time for direct deposit payroll is generally two (2) banking days. This means that the
payroll must be approved, and the funds available in your company bank account, no later
than 5:00 p.m. PT two banking days before the pay date. For example, if your pay date is on
a Friday, the payroll must be approved by 5:00 p.m. PT on Wednesday. However, if either
Wednesday or Thursday were a bank holiday, the payroll would need to be approved by 5:00
p.m. PT on Tuesday.
In some cases, a payroll account will be placed on a five (5) banking day lead time for direct
deposit. (This will be clearly indicated when payroll is run.) Using the above example, if the
pay date is on Friday, an account on a five day lead time would need to approve payroll no
later than 5:00 p.m. PT on the previous Friday (assuming there is no intervening bank
holiday).
Some QuickBooks Online Payroll customers are now at 0-day/1-day lead time. See 24 hr
direct deposit for more details.
Use our Payroll Send Tool to find the latest date to approve direct deposit for a scheduled
pay date.
What happens if I approve a direct deposit check after the cutoff time?
The transaction will process the following banking day.
For example, if you approve a direct deposit payroll at 5:20 pm PT on Wednesday, it will be
processed just after 5:00 p.m. PT on Thursday and posted to the employees' accounts on
Monday. (This assumes there is no intervening bank holiday.)
How far in advance can I create direct deposit paychecks?
You can create direct deposit paychecks well in advance of the pay date. You can also have
more than one direct deposit payroll at a given time. This can be a convenience if you're
travelling or otherwise unable to access your payroll account for an extended period. Note
that for each payroll you create in advance, the funds will still be withdrawn two (2) banking
days before the pay date.
It's important that you create payrolls in sequence (with the earliest pay date first). Also,
running a large number of payrolls in advance can make it more difficult to make any
changes later. Use this flexibility with discretion.
What happens if I create my direct deposit early?
Regardless of when you create your direct deposit payroll, the funds will still be withdrawn
the same 2 business days prior to the check date. Take caution when creating direct deposit
early, as this may lead to incorrect tax calculations if the payrolls are created out of order.

If I run direct deposit on a weekend or holiday, when will it be deposited?
Using our service, we will always post funds to the earliest date possible while maintaining
the 2 business day lead time. If checks are approved on Wednesday before 5:00 p.m. PT for
a Saturday pay date, they will post on Friday. If checks are approved on Thursday before
5:00 p.m. PT for a pay date of Saturday, they will post on Monday. The final decision is
ultimately made by the receiving bank and funds could not post as expected.
Intuit Online Payroll recommends to use a pay date of when the funds will actually post to the
employee accounts, using the 2 business day lead time. Not only does this help clear up
confusion, but should be done anyway due to the law of constructive receipt
Direct deposit dated for a bank holiday acts in the same manner as a weekend date (see
above).
What time should my employee expects to see their funds if I submitted
my payroll within the parameters above?
Your employee should see their funds in their account by 5 p.m. local time.
Accounting
How DD checks show in QBO register?
Sample DD Payroll created in QBOP:
DD payroll view in QBO register:
Special situations

How do I delete a direct deposit paycheck?
Important:
● You cannot undo a paycheck deletion. To restore the paycheck, you'd need to
recreate it.
● Voiding a direct deposit paycheck or contractor payment does not reverse the money
movement of the original transaction. It only adjusts your payroll records for
accounting purposes. You generally need to have the employee or contractor
reimburse you for the net pay amount.
● There are several items to be aware of when deleting or voiding paychecks in prior
periods (that is, in prior quarters for which you've already paid taxes and filed forms):
○ It will change your tax liabilities for those periods. You may owe additional,
late tax payments that are subject to penalty and interest. You may also need
to prepare and file amended forms. (Online Payroll doesn't support
preparation of amended forms.)
○ If you intend to delete/void paychecks and then re-enter them, you'll generally
be blocked from performing the re-entry yourself. Payroll Support would need
to do it for you. (The blocking is due to state unemployment insurance (SUI)
tax payments. If you pay SUI manually (non-electronically), you may be able
to temporarily delete the payments, re-enter the paychecks, and recreate the
payments.)
○ If you intend to delete/void paychecks for a prior year, you'll need to prepare
and file amended annual forms, including federal Forms W-2 and 940. The
affected employees would also need to prepare and file corrected versions of
Form 1040.
To delete a direct deposit paycheck for ​Intuit Online Payroll​:
1. Click ​Reports​.
2. Click ​Paycheck List​.
3. Click the check date.
4. Click​ Delete​.
5. Click ​Yes ​to confirm the deletion.
Note​: Direct deposit paychecks can be deleted up until they start to process. If ​Delete does
not appear as an option, contact Payroll Support for assistance.
To delete a direct deposit paycheck for ​QuickBooks Online Payroll​:
1. Select ​Workers.
2. Select ​Employees​.
3. Click ​Paycheck List​ under the Run Payroll button.
4. Select the check to be deleted.
5. Click ​Delete.
6. Click ​Yes ​to confirm the deletion.
Note​: Direct deposit paychecks can be deleted up until they start to process. If ​Delete does
not appear as an option, contact Payroll Support for assistance.

How can I turn off direct deposit for just one check?
For QuickBooks Online:
1. Click ​Workers​.
2. Select ​Employees​.
3. Click the employee's name and click ​Edit employee​.
4. Click the pencil next to the current pay method.
5. Click the drop down arrow on the ​QuickBooks Direct deposit​ or paper check page,
click the drop down arrow and select the pay method you want.
OR
1. Click ​run payroll​.
2. Click the image of the cheque next to the employee name.
3. Select paper cheque.
4. Run Payroll.
For Intuit Online Payroll:
For an Employee:
1. On the Create Paychecks screen, click the Check Details icon to the right of the
employee's name.
2. Deselect Use direct deposit.
3. Enter the employee's paycheck information.
4. Click Create.
5. The employee's check will not be marked for direct deposit. You'll be asked to enter a
check number before printing.
For a contractor:
1. Click Employees.
2. Click the contractor's name.
3. To the right of Pay Method, click Direct Deposit.
4. In the Payment Method section, select Check, and click Ok.
5. Create the contractor's check.
6. Repeat steps 1-2.
7. To the right of Pay Method, click Check.
8. In the Payment Method section, select Direct Deposit, and click Ok. (Do not re-enter
the contractor's bank account information since it's already saved in the system.)
I received an error message that my direct deposit is larger than normal
and to contact customer support.
We set a security limit to help protect you from fraudulent ACH activities by capping the
amount you can send using our ​QuickBooks Direct deposit services. This limit is set based
on your average payroll. Follow Request a direct deposit limit increase article to request an
increase in your security limit.

I got an error that you were unable to make a direct deposit to my
employee's account.
You'll see this message if your bank's routing number and your account number don't match
or one of the numbers was entered incorrectly. If you've re-entered the routing and account
numbers and verified they are correct, your employee may have been blocked due to too
many failed transactions. Contact us for help in resolving this issue.
We are PosTechie, provide all kind ​QuickBooks Error Support​ ​or ​QuickBooks​ ​POS Error
Support​ ​you can call at our ​Toll-Free 18009350532