How to Set up Employee for Direct Deposit in QuickBooks? QuickBooks is the accounting software that is used all over the world by people for large as well as for small businesses. With the help of QuickBooks Desktop, employees can be paid very easily by Direct Deposit. Direct Deposit is the basic step in transferring money from one bank account to another account. This article provides you with all the details related to it, For instant response, you can contact us for QuickBooks Desktop payroll support through the number [quickbook].
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What does Quickbooks’ direct deposit mean?
Basically, direct deposit is the way to transfer the funds digitally in the other words you can say transfer funds electronically directly into the accounts of the receiver. You can use the direct deposit method to transfer the paycheck and payroll to the account of the employee directly. You don’t need to present there physically to deposit the funds so you can save time easily and it is also beneficial for both either employees and employers. Through direct deposit, employer lowers their cost as well as track and maintain the record easily. An employee can also get benefits through this as getting a tax refund from the government because the government also preferred to send funds or tax refunds directly to the beneficiary account. You need to request your financial institution where you have an account for releasing the funds in the beneficiary accounts on payday. It may take 2 working days to transfer the funds to the account of the beneficiary.
With 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 that confirms that the transaction is secured. This also confirms that it is secure and there is no fraud occurring.
This payroll process should be flexible and straightforward whenever you will be activating direct deposits in Quickbooks for your employees. With the help of this, all the employees will be paid on time, and while using them you are able to set up, remove, and 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 that 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 a bank account that can manage all transactions which are 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 the Employee name double click it, then choose the 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 the employee name.
- Then you need to choose to deposit the paycheck into one or two accounts that you want.
- Then enter the employee’s financial information which includes bank Name, Account Number, etc.
- In this, you have one option 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.
Steps for set up direct deposit for employees
As you know that direct deposit is used for paying your employees directly in their accounts. So, before doing this you have to set up and add employees to direct deposit. Follow the given steps for moving forward.
Step 1. Set up your company payroll for direct deposit
Before using the direct deposit you’ll need to set up your company payroll’s bank account. So if you set for QuickBooks online payroll then:
- The very first step is to connect your bank account first and for this, you need to do instant bank verification. You have also the option to change the existing payroll bank account for this you have to go to Change your payroll bank account.
- Now the next step is to verify your bank account for this you have to go through the test debit to authorize your account.
- Now the last step is to pay your employees.
If you are using QuickBooks Desktop Payroll
- Firstly you need the information of your business, bank, and principal officer’s social security number and online bank credentials.
- Then the next step is to connect your bank account by login Quickbooks
- After that, you have to verify your bank account.
- Then you have to set up your employees’ bank accounts.
- After doing the above steps you can pay your employees.
Step 2. Get a direct deposit authorization form
Employees have to fill out the direct deposit authorization form and then complete the document with a sign, and date and have to include a voided check from their bank account.
Step 3. 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
QuickBooks Desktop payroll is used 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 Number, Account Number, and Account Type.
- If you select the option to 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 Employees.
- Next, choose the employee’s name, and later look for the edit icon(pencil) near the Pay option.
- Then select 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
For Intuit Online Payroll you have to follow the given steps:
- First, click on 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 employee’s bank account information 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 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’s’s 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 activating 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.