How To Set Up An Employee For Direct Deposit In QuickBooks

How to Set up Employee for Direct Deposit in QuickBooks? QuickBooks is the accounting software which is used all over the world by the people for large as well as for small business. With the help of QuickBooks Desktop, employees can be paid very easily by Direct Deposit. Direct Deposit the basic step in transferring money from one bank account to another account. This article provides you all the details related to it, For more information contact us:+1-888-202-8743

By the QuickBooks Direct Deposit, you are easily able to pay the employees by not printing a check or by writing. The Direct Deposit creates a PIN which confirms that the transaction is secured. This also confirms that it is secure and there no fraud occurring. 

This payroll process should be flexible and straightforward whenever you will be activating direct deposit in Quickbooks for your employees. With the help of this, all the employees will be paid on time, and while using them you able to set up, remove, edit direct deposit services easily.

To activate the QuickBooks Direct Deposit for employees, they first need to enter all the details in the Authorization form. Then, avoid check is produced for their bank account. This information which you will enter will be for the records, it will not be submitted in the QuickBooks Desktop.

Things Required for Sign Up To Direct Deposit

There are some things included for signing in Direct Deposit:

  • Required Internet Access.
  • QuickBooks version should be updated to the latest version.
  • QuickBooks version should support the direct deposit
  • QuickBooks desktop subscription should be activated.
  • You need to add Employer Identification Number(EIN) to QuickBooks Payroll.
  • There should be bank account which can manage all transaction which is related to the Automated Clearing House (ACH) in the United State.

Steps For Set up Employee For Direct Deposit in QuickBooks

  • Go and select Employees and for opening the employee list select Employee Center.
  • On Employee name double click it, then choose Payroll Info option.
  • Then you choose the DD option and the Direct deposit window will be opened.
  • Then from the Direct Deposit window, click on Use DD for employee name.
  • Then you need to choose for depositing the paycheck into one or two accounts that you want.
  • Then enter the employee financial information which includes bank Name, Account Number, etc.
  • In this, you have one option that if you want to deposit two accounts, then you have to enter the account or the percentage of the amount that the employee wants to deposit to his first account in the Amount to Deposit field.
  • Then click on Save and then Close it.

How to add your employee to direct deposit

After performing these below steps, when you create any paycheck for the employee will be considered as a direct deposit. Go with the steps according to the version of your payroll.

Quickbooks Desktop Payroll

When your employee’s bank states that the account should be marked as a money market, then in this scenario, you need to inform your employee that QuickBooks Desktop only allows checking or savings accounts, so you must choose to check option.

  • Go to the Employees and click on the Employee Center and launch your employee list.
  • Next, click on the employee’s name.
  • Later, go to the Payroll Info tab. And look for the Direct Deposit button and click on it.
  • Now, go to the Direct Deposit window, and click on Use Direct Deposit for [employee’s name].
  • Choose whether to deposit the paycheck into one or two accounts.
  • Next, insert the employee’s financial institution information such as Bank Name, Routing No., Account No., and Account Type.
  • If you select the option deposit to two accounts, then you need to insert the amount or percentage that the employee requires to deposit to the first account in the Amount to Deposit field. The rest balance moves to the second account.
  • Click on OK to save the information.
  • Now, insert your direct deposit PIN when indicated.

QuickBooks Online Payroll

  • First, go to the Payroll menu and click on the Employees.
  • Next, choose the employee’s name, and later look for the edit icon(pencil) near the Pay option.
  • How do you want to pay this employee? Here you need to choose the method which your employee desires to receive their pay, choose any one of them
    • Direct deposit
    • Direct deposit to two accounts
    • Direct deposit with balance as a check
  • Now, insert the routing and account numbers from the employee’s voided check and then click on Done.

Note: If you want to set up the accounts to divide the money between, then you require to set a dollar amount instead of a percentage.

Intuit Online Payroll

  • First, click on the Employees.
  • Next, go to the employee’s name, and next click on the Edit option alongside Pay.
  • Click on OK.
  • Select one of the choices:
    • Direct deposit
    • Direct deposit to 2 accounts
    • Direct deposit with balance as a check
  • How do you want to pay this employee? Here you need to choose the method which your employee desires to receive their pay, choose any one of them
    • Direct deposit
    • Direct deposit to two accounts
    • Direct deposit with balance as a check
  • Now, insert the routing and account numbers from the employee’s voided check and then click on Done.

Note: If you want to set up the accounts to divide the money between, then you require to set a dollar amount instead of a percentage.

Edit an Employee DD Information

If any detail of the bank is changed say as address or any other information then you need to edit the bank account information of the employee before you create a paycheck. The Paychecks which will be created before updating the information of the employee account will automatically submit to the old bank account. The steps are:

  • Open the Paycheck and then go to the Paycheck Detail window.
  • Then you uncheck the Use Direct Deposit option in Paycheck Details.
  • Then select the Save and then Close it.
  • Then open the paycheck again and then you can able to choose the Use DD option and click on the Save button.

Delete or Remove Direct Deposit Permanently

If you need to delete the DD from the employee profile permanently then you need to follow these steps:

  • Choose the Employee and then select Employee Center.
  • Then double click on the employee name to edit his/ her profile.
  • Then click on the Payroll Info tab for employee information and then click on the DD option.
  • Then you need to clear the box 
  • Abd at last Use DD for employees.

Final Words

Here we have discussed setting up the Direct Deposit for an employee in QuickBooks. By this DD will be done easily and employees can be paid easily and on time. We have discussed to activate the employee account and how to edit or delete the employee Direct Deposit Information. If you face any issue regarding this then you can contact our QuickBooks support team and can able to contact our QuickBooks ProAdvisor for the perfect advice and can solve any issue that occurred.

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