Direct deposit FAQs

This article covers the most frequently asked questions about direct deposit for QuickBooks Payroll.

Frequently asked questions

Here are answers to some questions you may have about direct deposit.

What's the cutoff time for approving payroll for direct deposit?

Submit your payroll by 5 pm PT at least two banking days before the pay date. Paycheques submitted after the cutoff time will be processed on the next banking day and paid two banking days after that.

For example, if your pay date is on Friday, submit payroll by 5 pm PT on Wednesday. If you pay your employee on Monday, submit payroll by 5 pm PT on the previous Thursday.

How do employees know direct deposit is correct in their bank accounts?

Be sure to give your employees printouts of the pay stubs you submitted. On the day that the funds are due to be deposited, they can contact their banks to receive confirmation of the deposits.

When will my employee's account be credited?

We credit your employee's account on the pay date you specified when you ran the payroll. For direct deposit, the pay date must be at least two business days after you submit a pay cheque.

For example, if you submit a paycheque before or at 5 pm, Monday, and set the pay date for Wednesday, the money will be in your employee's account by 9am Wednesday, assuming there are no banking holidays in this date range.

How can I see which paycheques are direct deposit?

To see which paycheques were paid with direct deposit for a particular employee:

1. Go to Payroll and select Employees (Take me there).
2. Select the employee's name.
3. Select Pay Cheque list.
4. Look for Direct deposit in the Pay Method column.

To see a list of employee paycheques:

1. Go to Reports (Take me there)
2. Enter pay cheque list in the search box, and then select Enter.
3. Specify the date range for the pay cheques you want to see.
4. Look for Direct deposit in the Pay Method column.

What do I need to do when I have insufficient funds?

1. Find the email we sent you about insufficient funds.
2. Follow the email instructions about wiring money to your bank account.
3. Follow the email instructions about confirming with us when you complete the wire.
4. When we confirm that your wire was successful, we'll remove the hold on your payroll. Usually this occurs the same day or the next day, depending on when you complete the wire.

Note: Why a wire instead of a credit card, debit card, or other transfer? Wiring is the fastest way to get your payroll back up and running.

Direct deposit security limits

Direct deposit limits help protect you from fraudulent Automated Clearing House (ACH) activities by capping the amount you can send by direct deposit. Employers usually exceed the limits only once or twice a year—when they pay bonuses. If you expect that the total amount of your year-end payroll or bonus run will be more than your current direct deposit limit, you can increase your limit.

If you don't want to increase the direct deposit limit, you can try paying large bonuses by cheque instead of using direct deposit. You can also try breaking up the direct deposit into separate cheque dates.

How do I increase the direct deposit limit?

If you want to increase your limit, you can file a request.

Be sure to have the following information handy:

• Company legal name
• Business number
• Primary Principal name and email address
• Requestor name and email
• Pay cheque date
• Requested amount

What if my pay date falls on a weekend or holiday?

If your pay date falls on a weekend or holiday, approve the direct deposit payroll early enough that employees will receive their net pay on the last business day before the weekend or holiday. See payroll and holidays for more.

For example, if your pay date falls on a Saturday and you want employees receive their pay on Friday, approve payroll by Wednesday at 5 pm PT. If you approve payroll after that time, employees will likely receive their pay on Monday.