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Intuit

How to set up payroll direct deposit

You can easily set up payroll direct deposit in QuickBooks Online. After you do the initial set up you can set up each employee on direct deposit and also verify your test transaction.

Using QuickBooks Online Advanced Payroll powered by Wagepoint? Click here.

Direct deposit initial set up

Here's how to initially set up the direct deposit:

  1. Select the Gear icon on the Toolbar, then Payroll Settings.

  2. Under Payroll, select Direct Deposit.

  3. Review what you'll need to set up direct deposit and select Yes! Let't get started.
  4. Fill in required fields for Employer Bank Account and Account's Principal Officer. 
  5. Select Continue.

  6. You'll receive a confirmation email from notify@quickbase.com prompting you to verify your information. Once the information is verified, you'll receive another email confirming your pre-authorized debits.

Verify a test transaction direct deposit

After you do the initial set up you need to verify a direct deposit test transaction. In 2-3 business days, a small debit of less than $1.00 (CAD) will be taken from your account as a test. To verify this amount:

  1. Select the Gear icon on the Toolbar, then Payroll Settings.

  2. Under Payroll, select Direct Deposit.

  3. Select Verfiy Test Transaction. (Note: This option will not be available until the test amount has been debited.)
  4. Enter the test transaction amount in both boxes (less than $1.00). Enter the pennies only, without a dollar sign. (i.e. .47)
  5. Select Ok.

  6. After successful verification, you're ready to set up employees!

If you don't see this transaction within three business days of entering direct deposit information in to your Payroll Settings, there are steps you can take to re-trigger the test transaction. To do this:

  1. Select the Gear icon on the Toolbar, then Payroll Settings.

  2. Under Payroll, select Direct Deposit.

  3. Select Yes! Let't get started.
  4. Select the Edit button next to the Bank Account field.
  5. Input the following number sequence into the bank account field: 123456789.
  6. Select Save.

  7. Immediately go back into your Payroll Settings from the Gear icon and select Direct Deposit.
  8. Select the Edit button next to the Bank Account field.
  9. Re-enter the correct bank account number and save the changes.
  10. This should re-trigger QuickBooks Online to send the test transaction to your bank. Please wait another three business days for the transaction to appear on your bank account.
Note You have three attempts to verify your test transaction. If you aren't successful, contact us for assistance.

Set up each employee on direct deposit

After your direct deposit test transaction has been verified, you're ready to set up each employee:

  1. Ensure the employee has properly filled out the Direct Deposit Authorization Form.
  2. Once you've completed the initial set up your direct deposit settings screen will look like this. Select Set Up beside the desired employee.Set up direct deposit in QuickBooks Online
  3. From the What do you use to pay Employee? drop-down arrow, choose Direct Deposit.
  4. Fill in the fields using the information from the employee's authorization form.
  5. Select Ok.

  6. This completes the set up process and you're now ready to use direct deposit to pay your employees.

 

Agent Notes

  • Direct Deposit (DD) can take up to 1 week* (longer, if there are any delays or errors) to get set up, depending on if there are errors. Best Practice is to have customers start this process the day after they run a payroll with paper cheques to ensure they are not in "Pending" status for the next payroll run.

*For more information about DD Timelines see Direct Deposit Processing Timeline
*For more information about status definitions Canada - Direct Deposit VDB Status

  • Encourage customers to double-check ALL ACCOUNT NUMBERS and banking information as they are entering information to set up Direct Deposit (DD) for Payroll. Incorrect numbers/information may result in delays in the DD process, funds being deposited to the incorrect account, and/or additional fees for DD reversals.
  • The Principle Officer's information refers to the Primary Owner of the Bank Account the payroll cheques will be withdrawn from.
  • Once the Direct Deposit function is set up, customers must approve pay cheques paid with DD at least TWO BANKING DAYS BY 5 PM Pacific Time before the pay date. NOTE: Some customers have a 5-day lead time. The lead time can be found in the main screen in CS Server at the top right corner as DD LEAD TIME:
  • The Risk Analysis can take UP TO THREE BUSINESS DAYS to complete after DD set up.
  • All communications to the MMA on the file, with the exception of the verify test transaction and AML/OFAC email, which goes to the Principal Officer (Bank Owner) 24-48 hours after sign up, the Principle Officer will be sent an email to submit their ID’s to the compliance team to remove the AML/OFAC Blocking and the customer can then start using our direct deposit service.
  • All email communications for DD WILL BE SENT TO THE MMA on file. If that role is being filled by an Accountant or Office Personnel, it is up to that person to communicate this information to the Owner or other people the messages pertain to.
  • A test transaction (under $1.00) will be debited and then credited from the bank account associated with payroll to verify the validity of the banking information/account number. (Agent can see the dates of any test transaction attempts in "Bank Account Status" link in top right corner of CS Server home screen.)
  • If customer does not see this transaction after three business days after entering DD information in Payroll Settings, have the customer put 123456789 in the bank account field and save the changes. Then, have them immediately go back into Payroll Settings>Direct Deposit and re-enter their correct bank account number and save the changes. This should re-trigger QBO to send the test transaction to their bank. Have them wait again for three business days for that transaction to appear on their bank's website/account.
  • Customer will receive an email with a link to upload their ID to the compliance team. If they have not received the email, reach out to a Lead to get the email resent.

AML emails are sent from notify@quickbase.com

Verify test transactions

  • Customer can go to Gear>Payroll Settings>Direct Deposit>Verify Test Transaction to enter that amount there.
  • If the customer can't verify the test transaction on their own for any reason, follow the steps below and have the customer read the amount to you.

To manually confirm the test transaction (VBD)

  1. From the CS Server, click Account Actions > Tier 1 > Test transaction
  2. Ask the customer for their test transaction amount and enter it in CS Server.
  3. Click Verify.

If the test transaction amount doesn't match, ask the customer to double check their banking statement or call their bank directly