Direct deposit is the most convenient and safest way to pay your employee's customers with just a single click in no time. Besides the speed and ease, it also offers other features such as the unnecessary worry of losing a paper check, timely payment of employees, and more. To get started with this advanced feature, you must set and activate direct deposit in QuickBooks Desktop, which lets you enjoy the peace of paying your employees without any hassle.
Setting Up and Activating Direct Deposit in QB by Following These Steps
The steps below will help you get started with the QuickBooks direct deposit feature, which lets you pay your employees most conveniently.
Note: Missing any information while setting up the direct deposit or not following the steps to the end might trigger QuickBooks error 40001 and interrupt the completed process. So, we recommend you be careful and stay with us until the end.
Step 1: Get Your Business, Bank, and Principal Officer Info
To set up the direct deposit for your company in QuickBooks, you will require the following information:
Your address, EIN, and Business name
Home address, birth date, and principal officer’s Social Security number
Your company’s bank routing and account numbers or online bank credentials
Bank account info of employees’ or contractors’
Step 2: Now, Connect Your Bank Account
With Instant Bank Verification, you can link your bank account instantly and start using direct deposit for your team immediately.
Launch QB and sign in using the admin password.
Navigate to Employees> My Payroll Service and Activate Direct Deposit.
Click Get Started and then move to the Business tab. Then, click Start.
Enter the required information and click Next.
Now, fill in the Principal office information and hit Next.
Click on Add a new bank account and enter your bank name and credentials, either your bank routing or bank account numbers.
Now, create a security PIN, which you will use each time you use payroll.
Confirm the PIN twice and click Submit.
Hit Next and then click Accept and Submit.
When prompted, confirm the Principal officer’s full Social Security number and hit Submit. Now, you will receive one of the following messages:
Your bank account is connected. This means you are all set to pay your employees.
Thank you for signing up for QuickBooks Direct Deposit. What’s next to activate Direct Deposit? It means you still have to follow some other steps.
Step 3: Verify Your Bank Account
Let’s verify your bank account to ensure it is connected to QuickBooks. Intuit will ping your account with a test debit of less than $1.00 if you cannot connect with the bank instantly. You must enter that amount to authorize your account for payroll transactions. Be patient, seeing that debit can take up to 2 days.
Step 4: Finally, Setting Up Your Employees’ Direct Deposit
In the last step, we will set up your direct deposit for employees. Get the direct deposit authorization form and have your employees fill out, sign, and date the direct deposit authorization form while attaching a voided check from the employee's bank account. You can choose payroll for the next steps.
Ask your employee for a voided check or specific information, like their bank account and routing number. The voided check must not be submitted to QuickBooks Desktop; it is solely for your records.
Above, we have learned how to set up and activate direct deposit in QuickBooks Desktop for your employees. Once you activate this advanced feature, you will be able to send your employees their pay without any hassle and in a timely manner.
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