Learn About Activating Direct Deposit in QuickBooks

Using the QuickBooks direct deposit form simplifies payroll processes by automating employee and contractor payments and eliminating manual paycheck handling. Employers securely gather crucial details like bank information and payroll authorization, ensuring compliance and accuracy. Activating direct deposit in QuickBooks enhances efficiency and reduces administrative burdens.

For added convenience, employers can opt for employee self-setup, leveraging QuickBooks Workforce to send invitations automatically. This further streamlines the process by enabling employees to directly submit their banking, tax, and personal information. Establishing direct deposit through QuickBooks guarantees security and complies with payroll laws while improving payroll efficiency.

Let’s Set Up Direct Deposits in QuickBooks Desktop

Here, we've covered a few steps to configure for direct deposits in QuickBooks:

Step 1: Link Your Bank Account

1. Select the Overview option after navigating to the Payroll section.
2. Under Connect your bank, click Let’s get started.
3. Choose Get Started.
4. Navigate to Business and click Edit.
5. Include any necessary information, such as your federal tax ID number. Click Next.
6. Enter details like the Principal Officer's name, address, date of birth, and Social Security number. Click Next.
7. Select Add new bank account.
8. Search for your bank name.
9. Please provide your online banking user ID and password.
10. Alternatively, select Enter bank info manually.
11. Click Save after entering your routing and account number.
12. Finally, click Accept and Submit.

Step 2: Verify Your Bank Account

1. Please check your bank statement within two business days for a small deduction made by Intuit Payroll.
2. Once you've identified the deduction, log in to QuickBooks with your administrator credentials.
3. Navigate to the ‘Employees‘ section, click ‘My Payroll Service,' and then ‘Activate Direct Deposit.'
4. Next, access your Intuit account and enter the deducted amount twice when prompted.
5. After entering the amount, choose ‘Verify.'
6. To finish the process, enter your payroll PIN, click ‘Submit,' and then ‘OK‘.

Step 3: Set Up Your Employees' Direct Deposits.

QuickBooks Online Payroll

1. In QuickBooks Payroll, go to Employees.
2. Choose which employee you want to update.
3. Under the Payment method, click on Start or Edit.
4. From the Payment method dropdown menu, select Direct Deposit. You can find the direct deposit authorization form here if your employee hasn't already signed one.
   • Select a Direct deposit method:
   • Direct deposit to one account
   • Direct deposit to two accounts
5. Direct deposit with remaining balance issued as a check
6. Click Save after entering the routing and account numbers from the employee's voided check for direct deposit.

Payroll In QuickBooks Desktop

1. To start, view your list of employees by going to Employees and then Employee Center.
2. Next, select the employee's name that you want to alter.
3. Navigate to the Payroll Info tab.
4. Click the Direct Deposit option.
5. Choose Enable Direct Deposit for the particular employee in the Direct Deposit window.
6. Choose which accounts to open with your paycheck deposits.
7. Enter the employee's banking information, such as the bank name, account number, routing number, and type.
8. If you choose two accounts, indicate how much will go into the first one overall or as a percentage in the Amount to Deposit box.
9. The second account will receive the remaining amount.
10. Click OK to save the information you submitted. When asked, enter.

In summary, we hope you understand that activating direct deposit in QuickBooks can help maintain financial records, etc. You might come across QuickBooks error 40001 while activating direct deposit in QB. So, read the steps mentioned earlier to set up direct deposits adequately.

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jamesrichard8506 Member since March 23, 2023