Direct deposit saves time in payroll but do you know how does direct deposit work with QuickBooks? This article Will guides you on how to Activate QuickBooks Direct Deposit Payroll Feature in QuickBooks.
- How much does it cost to do QuickBooks direct deposit ?
- Requirements to sign up for Direct Deposit:
- Benefits to Activate Direct Deposit Feature In QuickBooks Payroll Requirements
- Things you should Complete before using Direct Deposit:
- Steps to Sign up and activation of Direct Deposit
- Steps to Set up an employee for QuickBooks Direct Deposit
- How to edit an employee’s direct deposit information?
- Removing Direct Deposit permanently from an employee’s profile
You can activate your own Payroll Feature to pay your employees via DD in QuickBooks Payroll. Employees need not have cash papers or checks to get their paychecks.
This feature has become popular nowadays to pay employers wages than paying via cash or check. Most of the employees expect their paychecks via DD because it is safe and convenient.
How much does it cost to do QuickBooks direct deposit ?
For QuickBooks Payroll, activating direct deposit cost is not applicable as it is basically free.
Let discuss some information in detail:
Although, QB activation of direct deposit is free. It will cost you per paycheck for the bank to bank transactions or by the transfer fee paid by the employer.
This charge is then processed at the time of the payroll run. This charge can also vary according to the product subscription.
Usually, the fees are $1.75 per paycheck sent according to the bank-to-bank processing or transfer fee.
As far as the monthly subscription is concerned flat charges of $39.00 a month are applicable. This includes additional services like automatic calculation of the federal tax as well as state tax etc.
Requirements to sign up for Direct Deposit:
Having all the needed items would be the easy sign up for the users.
- Check QuickBooks version you are using is supported for direct deposit or not.
- Active QuickBooks Desktop subscription.
- Add EIN(Employer Identification Number) to QuickBooks Payroll to use direct deposit feature.
- Easy Internet access.
- You should have a Bank account that can manage all the transactions related to Automated Clearing House(ACH) within the United States.
Benefits to Activate Direct Deposit Feature In QuickBooks Payroll Requirements
There are several benefits some of them listed below:
- No cost to sign up
- No need for a minimum number of employees or paychecks is required
- No minimum or monthly fees
- If you use the service you pay it, otherwise no.
- You can schedule QuickBooks Direct Deposits payments up to 45 days in advance.
- Your employees can be paid on schedule.
Things you should Complete before using Direct Deposit:
Verify your bank account
For security purposes, At the time of sign up when you gave your primary bank details, Intuit performs two small withdrawals of less than $1.00 each from the bank account you set up for DD. Examine your bank account for the sums and verify them in QuickBooks.
After verified, You become an authorized user of the account, And the bank account is ready for authorized payroll transactions and fees. Once your bank account is confirmed, Intuit automatically refunds two small test debits within 7 working days from the original debit date.
Set up the Account details of the employers in your QuickBooks Payroll Account
Collect bank account detail from workers who like to be paid by direct deposit. The Worker must give written approval to you for direct deposit of their paychecks.
- After doing all the things, You can Create Paychecks for your employees by using Direct Deposit.
- You can transfer payroll information to Intuit before 5:00 p.m. in the Pacific time at least 2 business working days before the check date.
- You can send your payroll information to Intuit up to 45 days in advance of the check date.
- Direct Deposit requires internet access. Your QuickBooks Desktop application and DD service issue a secured Internet connection that protects against unauthorized access to your payroll data while it’s being transferred.
- DD can be delivered to an intuit pay card.
- If two business working days have passed, But the check date falls on a non-working day or a Federal Reserve holiday, the funds will be deposited in the Employee’s bank account on the next working day.
DD Processing Timeline:
- Direct deposit is forward to Intuit QuickBooks before 5:00 pm PST and It takes two 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, two banking days before the check date.
- Note: Paychecks can be forward to 45 days in advance.
- Holiday reminder.
- The payroll is offloaded.
- Typically, Direct Deposit payroll is offloaded two banking days before the paycheck date at 5:00 PM PST.
- Intuit cannot stop the DD transactions at any point without having a fault.
- QuickBooks Direct Deposit payroll is electronically sent to ACH (Automatic Clearing House) for processing.
- Intuit will charge your bank account on the working day before the paycheck date which can arise within 24 hours.
- Funds are posted
- Funds are deposited to your employee’s account on the paycheck date.
- The information about DD posting time or availability of funds is checked 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 to the employee’s bank account on the next banking day.
- The Employee’s bank has until 11:59 PM on the day of the check date to post the funds to the employee’s bank account.
Note: Nominal per transaction and per payroll transmission charges may apply. Terms & Conditions, Price, Feature Services Options and Support can be change without any notice.
Steps to Sign up and activation of Direct Deposit
Read and Follow the instructions carefully.
- Go to Main Menu
- Choose Employee Tab
- Select My Payroll Services
- Select Activate Direct Deposit.
- After Finished, Review the form.
- When asked for a Pin Code in the legal company detail, Type the five digits only without the extension.
∎ In the section of verification of your Company:
- Add the Legal Company Name and Address to add the industry.
- Select the most suitable industry to consider your company’s main business.
Note: The pin code must be 5 digits only, without the extension.
- Add the Owner’s credentials: Email id, Nine digit SSN, and DOB.
Note: Credentials are mandatory to fill as per the rules & regulations by National Automated Clearing House Association(NACHA).
- Verify the Payroll Administrator details and E-mail address.
∎ In the section of your Bank Details:
- Type the bank account details that Intuit QuickBooks Payroll debits for DD transactions and charges. A bank account that you use to pay your employers.
∎ Click the View Agreement link and read it.
∎ Choose the checkbox to agree to the terms of service agreement.
∎ In the check security limits section, answer the questions provided.
- Click the submit button.
Note: If nothing happens after clicking Submit: remove all the details on the form including the details on the Edit links, manually re-enter the information and then click Submit again.
- After complete Submission, Page will display a confirmation message with your next instructions, Which you can print.
- Click the “Return to QuickBooks” button at the bottom of the page.
If you are still unable to perform these steps of having issue then call our QuickBooks payroll support to get instant assistance.
Steps to Set up an employee for QuickBooks Direct Deposit
- Firstly, select Employees and then select the Employee Center to open the employee list.
- Now, double-click on the employee’s name.
- Then, select the Payroll Info tab.
- After this, choose Direct Deposit button.
- In the Direct Deposit window, click on Use Direct Deposit for [employee’s name].
- Choose whether to deposit the paycheck into one or two accounts.
- Enter the employee’s financial institution information that includes the Bank Name, Routing No., Account No., and Account Type.
- If you wish to deposit to two accounts, then you need to enter the amount or percentage that the employee wants to deposit to the first account in the Amount to Deposit field. The remaining amount is deposited to the second account.
- Choose OK to save the information.
How to edit an employee’s direct deposit information?
You need to edit the bank account information of the employee before creating a paycheck for him/her. Paychecks that are created before one updates the employee’s account information will be deposited directly to the old bank account. To avoid this, you can delete and reform the paychecks before sending them to Intuit, by following the below steps:
- First, you need to open the paycheck and go to the Paycheck Detail window.
- Now, uncheck the Use Direct Deposit option on the paycheck detail and select Save and then Save & Close.
- In the end, open the paycheck again and choose the Use Direct Deposit option. After this, click on Save.
Removing Direct Deposit permanently from an employee’s profile
For not paying the direct deposit to an employee, you can remove them from the setup.
- Firstly, choose Employees and then select Employee Center.
- Double-click on the name of the employee to edit that profile.
- Now, click on the Payroll Info tab.
- At last, click on Direct Deposit button. Then, select to clear the box Use Direct Deposit for this employee.
Do you need additional QuickBooks Payroll Support and help? Dial our toll-free number to get in touch with our expert: +1-855-441-4417.
More article to read: How to change your Direct Deposit Bank Account QuickBooks