How to Set Up Direct Deposit in QuickBooks

QuickBooks Desktop software is accounting software that has been highly valued by many bookkeepers, accountants, and businesses since its release. The QuickBooks Desktop software nearly covers all areas of bookkeeping and accounting. QuickBooks Desktop software allows you to keep track of invoices, budgets and create accurate reports. The software always remembers to submit your taxes on time and to import all of your spreadsheet data.

Talking about these different features that can make managing accounting very easy direct deposit is one such feature.

In this blog, we will break all the aspects and the importance of set up direct deposit in quickbooks online, so please read the whole blog very attentively and add this to your knowledge bank.

How do I Set Up Direct Deposit in Quickbooks Desktop

Direct deposit can be described as a wire transfer between different bank accounts. You can transfer your money from one of the employer’s accounts to your employee’s bank account. But you can use it for various other features as well.

Direct Deposit uses the ACH network, which takes care of these payments among the banks and financial institutions.

Initial Setup for Direct Deposit:

You can set up direct deposit for employees quickbooks, and to set it up, you need to follow the instructions that are given below:

• Click on the settings, and then you need to open the Payroll Settings.
  • Now you will need to tap on the direct deposit option, which is lying under the Payroll.
  • You need to setup the Direct Deposit and Tap on Yes, and start.
  • After that, you need to fill in the required credentials for the Employer Bank Account and Account’s Principal Offer.
  • Then you need to tap on Continue.
  • Lastly, you will receive a confirmation email from notify@quickbase.com that will ask you to verify the information.
  • Once you verify the same, you will receive the confirming email with the pre-authorized debits.

Following the aforementioned steps will help you to set up direct deposit in quickbooks desktop canada at the initial level. Now that you know this, you must learn how to verify a test transaction after the deposit. For that, you need to read the next section.

Verify a simulated Direct Deposit transaction:

The next step after direct deposit initial setup is to verify a test transaction Direct Deposit and to do that, and you need to follow the steps that are as follows:

• Click on the settings, and then you need to open the Payroll Settings.
• Now you will need to tap on the direct deposit option, which is lying under the Payroll.
• After that, you need to choose Test Transaction, and please note that you will only get this option after the test amount is debited.
• You need to enter the test transaction amount, and also, you need to enter the amount.
• Tap on OK, and after that, this will be verified, and you will be ready to setup the employees.

Now you will see this transaction in your account in three business days after entering the direct deposit into your Payroll Settings, and then you need to follow the steps to check the test transactions, which are given below:

• Click on the settings, and then you need to open the Payroll Settings.
• Now you will need to tap on the direct deposit option, which is lying under the Payroll.
• Tap on Yes! Let’s get started option.
• Now you need to tap on the Edit option, which is given next to the Bank Account Field.
• Enter the number into the accounting field from 1to 9.
• After that, you need to tap in Save and Close.
• Now you need to go back to your payroll setting from the given gear option and select Direct deposit from there.
• Tap on the Edit option, which is next to the Bank Account field.
• After this, you need to re-enter the bank account number and save the changes.
• This will help you to re-trigger QuickBooks Online so that you can send the test transaction.

Now that you have learned set up direct deposit in qb online successfully, you must learn how can you set up each employee on Direct Deposit, and know more about that, you need to read the next section of the blog.

Set up each employee on Direct Deposit

After setting up and verifying the direct deposit, you then need to setup each employee, and to do that, and you need to follow the steps that are given below:

• Please make sure that all your employees have correctly have filled the Direct Deposit Authorization Form.
• Tap on Direct Deposit from the drop-down.
• Use the information from the employee’s permission form to fill in the fields.
• Now you need to tap on OK.

These steps will help you to setup the employee on Direct Deposit, and you will be able to pay all your employees and workers through direct deposit.

Set up direct deposit quickbooks Desktop payroll

As already detailed, QuickBooks will help you set up the payroll that will eventually help you transfer your employees’ salary or wages directly into their bank account or the Pay Card that they carry along with them.

You got to set up the direct deposit before you can transfer the salaries to your employees’ bank account. Direct deposit needs a bank account that is set up by ACH transactions. You also need to add the employee’s credentials and essential information.

Please note that if you want to use direct deposit, you need to pay a subscription that will depend on your QuickBooks subscription, so please make sure that you’ve read the details before going through with it.

• Obtain information about your company, bank, and key officer: As already mentioned, you will have to give your employee some important details and credentials to set up the direct deposit. The information you will need is the Name, Address, EIN, Principal officer SSN, Date of Birth, Online Login Details of your bank account, including the account number.

These are some of the information you need to have if you wish to set up vendor direct deposit in quickbooks desktop software for your employees.

• Connect your checking or savings account: To connect your bank account, you need to follow the steps that are given below:

• Firstly, you need to open the QuickBooks Desktop software and then sign in with the QuickBooks admin username and password.
  • After that, you need to tap on the given Employees option, tap on to My Payroll Service, and click on the Activate Direct Deposit option.
  • Now you will see Get Started as an option. You need to tap on that, and if you don’t see that option, then:

• You need to tap on ‘I’m the admin, and I’m the primary person who can…’, and then you need to give in the admin’s email id along with the user ID.
  • You need to tap on Continue afterwards.
    • Now, at last, you need to enter the login credentials and then tap on to sign in. you can also create an account link.

Please note that you need to ensure that you are not signed into your intuit account on some other device.

• Tap on the ‘Get Started’.

• You need to tap on the given ‘Business’ option, and then you need to fill in the details, and then you need to tap on Next.
  • Now you must give the Principal officer info, and then after that, you need to tap on Next.
  • Then you need to add a new bank account and enter the bank name, and then enter the online banking credentials.
  • Now you must create a PIN and then tap on Submit.
  • After that, you need to tap on accept and then tap on Submit.
  • When you get the prompt, you must confirm the principal’s SSN and then again tap on Submit.

These steps will help you connect your bank account to set up direct deposit for contractor in quickbooks online software, now after this, you need to verify your bank account, and for that, you can read the following segment.

• Check the balance of your bank account: To verify your bank account, you must follow the steps are given as follows:

• At first, you will get a small debit amount from Intuit QuickBooks Payroll.
  • Now you need to open the QuickBooks, and then you need to sign in as the admin of the QuickBooks.
  • After that, you need to tap on the Employees option, and then you need to select the My Payroll Service and then choose the Activate Direct Deposit.
  • You must sign in to your QuickBooks again.
  • Now you must enter the debit amount that got deducted and then tap on Verify.
  • Now you must enter the payroll PIN and then tap on Submit and then tap on OK.

• Set up the bank account information for your employees: As mentioned earlier, you need to set up your employee’s bank account info and all the details related to the login credentials.

• Employees should be paid: To pay your employees, you can always create a paycheck, and then you can send the same to direct deposit, which will be the easiest way to spend your employees.

Setup QuickBooks Online Payroll

To set up QuickBooks Payroll you need to simply need to take care of the steps that are given below:

Please note that all the steps are almost going to be the same as the last section, so you can always draw from that, and whatever the necessary changes are, you will get in this section, so be flexible that way.

• Your bank account must be connected: It can easily take upto three business days to setup the account for direct deposit, and after that, you can use the same to pay your employees and the payroll taxes. Please make sure that you have connected your bank account.

• Bank Account Verification: As already mentioned in the last section, to verify the bank account, you may receive a modest deposit of less than $1.00 into your account when you provide your first bank account information from Intuit. You may use that amount to approve payroll transactions on the account. It may take up to two days for you to see the deposit.

• Employers should be compensated: As already mentioned, you may always generate a paycheck and then send it to direct deposit, which is the most convenient method to pay your employees and workers.

These are some of the steps that will help you setting up direct deposit through quickbooks in some of the different versions of the Desktop software. If you can still not understand the steps, you can always talk to one of our representatives, who will always help you fix any issue or set up anything in QuickBooks Desktop software. You just need to place a call at QuickBooks Desktop Error Support.

Conclusion

In conclusion, QuickBooks Desktop software is accounting software that will always help you manage the accounting of a particular organization. The software comes along with many different features, and Direct Deposit is one of them that will help you when you try to transfer the salaries of your employees and workers, so please read the whole blog attentively.

I hope that this blog proves to be a little helpful and was worth your time.