How to Set up Direct Deposit for Employees in QuickBooks


In this tutorial, you will learn how to set up QuickBooks Direct Deposit service for your employees.

Points to Remember

You are expected to send your payroll data 2 banking days prior to the check date, till 5 pm, PST, to ensure that the money is received by your employees on time. Intuit withdraws money from your bank account 1 day prior to the check date and then transfers it to your employee’s account on the check date.

Direct Deposit Authorization form must be filled by employees who want direct deposit.Employees will also provide you a canceled check from their bank account that must not be a deposit slip. The authorization form and voided check are for your records only. These records are not required to be submitted to QuickBooks Desktop.

Step by Step Process to set up an employee for direct deposit in QuickBooks

Step 1:
Go to Employees> Employee Center to open your employee list.

Step 2:
Click the employee’s name twice

Step 3:
Select the Payroll Info tab.

Step 4:
Select the Direct Deposit button.

Step 5:
Go to the Direct Deposit window, Click Use Direct Deposit for [employee’s name].

Step 6:
A select number of accounts: For Example 1 Account or 2 Accounts.

Step 7:
Input the employee’s financial institution information like Bank Name, Routing No., Account No., and Account Type.

Step 8:
If you select to deposit to two accounts, input the amount or percentage that the employee wishes to deposit to account no.1 in the

Optional Amount field. The remaining amount goes to account no. 2.

Step 9:
Select OK to save the information.

The next paycheck that will be created for the employee will be considered for direct deposit. If you wish to have direct deposit of a paycheck which has already been created but not sent you must delete that paycheck and create it again.

If there is a wrong direct deposit bank account on a paycheck but it is not sent you can locate and open the paycheck in the register then remove the checkmark next to use direct deposit information that has been added and save the paycheck.

There is no provision of adding direct deposit service to a paycheck that has already been sent.

Read about  Additional Information and Information about Foreign bank accounts.

Learn how to disable direct deposit temporarily and remove direct deposit from an employee’s profile.


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