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Quick Start with a QBO Expert: Setting up your Payroll Direct Deposit Account

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Hello QuickBooks Community! Today we have Trista, a QuickBooks Support Expert, sharing her top 3 tips when setting up your Direct Deposit Account in QuickBooks Online! 

 

A little bit about Trista is that she has over five years of experience at Intuit and has supported many QuickBooks Online and Desktop products. Currently, she assists large firms in the National Accounts Space. She loves spending the summer outdoors with her adventure pup, exploring hot springs, rafting, kayaking, hiking, and camping. When not outside, she enjoys playing video games such as Diablo 4 and FF7 Part 2 or creating custom photo-realism portraits or acrylic paintings! 

 

So, let’s get into it and hear her advice on getting started with your QuickBooks Payroll Direct Deposit Bank Setup. 

 

Tip 1: Choose your Primary Principal Phone Number Wisely

When entering a phone number, it's crucial to choose the primary principal phone number wisely, as this is where a Multi-Factor Authentication Text Message Code will be sent if any future bank changes need to be made. It's important to note that this code can only be sent to a phone number, not via email, so having the correct phone number is vital. If an office phone number is used with an automated answering machine or requires an extension, it may prevent the code from being received, and therefore, no changes can be made. This can lead to missed or late tax payments, which Intuit is not responsible or liable for.  

 

Additionally, the phone number is used to verify the legitimacy of the business when contacting support, so it's necessary to have the bank account owner's contact number with the ability to receive text messages to avoid any issues. We strongly recommend against using an accountant or administrative employee's phone number.

 

 It's also worth noting that the Multi-Factor Authentication Text Message Code is necessary for any changes made to the direct deposit account, the phone number that the code is sent to, & any personal data associated with the primary principal user. This includes their name, social security number, and address. Without this code, the client would have to work directly with Intuit Support to resolve the issue.  

 

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Tip 2: Set your Payroll Bank Account Owner as the Primary Principal 

When setting up the account, it's essential to enter the correct information, such as the correct social security number and date of birth, as it can cause issues down the line and can even lead to the account being put on hold or canceled. It is extremely important that the owner of the bank account be added as the Primary Principal and be present during the setup or be the one to set up the connection. 

 

The Primary Principal is legally and financially responsible for the payroll account, so it shouldn't be an accountant or an employee of the company. Giving this permission to someone else could lead to a lot of stress and heartache down the road, especially if they leave the company on bad terms. I've personally spoken to business owners where legal ownership/liability of their company account was taken over by a "bad actor," which can lead to disastrous circumstances. We've seen employees lock owners and other employees out of payroll accounts, run fraudulent payroll, wreak havoc on account data, remove payroll banks altogether, cancel company payroll accounts, and run fraudulent paychecks that cannot be returned via a direct deposit reversal request. 



To avoid these situations, remember to have the bank account owner be the primary principal during the payroll direct deposit bank setup and you should be set! 

 

Tip 3: Know that setting up a Payroll account for direct deposit and Taxes is essentially an application for approval by Intuit to use Direct Deposit and, Tax Epay/ Efile. 

Essentially, applying for a payroll bank account is an application for approval by Intuit to use Direct Deposit and Tax Epay/Efile. Once you apply, it will be reviewed by the underwriting and risk team. They will then determine your abilities to use the payroll bank account feature, your funding/lead times, and your direct deposit limit allotment.    

 

It's important to note that the lead times advertised on the QuickBooks Payroll sales page aren't guaranteed and can vary based on different factors. I always take the time to explain why these reviews are necessary, as it helps customers understand why we do what we do. Since Intuit isn't a bank, we use a credit system for direct deposit and tax payments, meaning that we pay the customers' employees along with some tax agencies directly out of an Intuit-owned bank account.

 

 Afterward, we debit the employer's bank account for the funds we paid out on their behalf. It's similar to a credit line, and there's no guarantee that we will be able to recoup/debit the clients for the full amount paid on their behalf. That's why the underwriting and risk team is here to ensure that we follow Natcha regulations and provide a safe ACH credit service. 

 

The more you know about this process, the more likely you are to accept and understand any news that support has to deliver, making your overall experience with us a positive one!  



That’s all we have for you today! I hope you found Trista’s Top 3 tips when getting started with your payroll direct deposit account helpful and that you feel more confident taking on this awesome feature within your account!  

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