Payroll payment settings

Master99 · ‎January 12, 2021

Hi,

The information given online is a bit confusing. Advanced QuickBooks payroll has the option payment settings. Does this mean if i will set this up the payments to employees will be made by QB one the payrun is processed?

thanks

JoesemM · ‎January 12, 2021

Thanks for getting back to us, @Master99.

You can read more about it here once you have downloaded the file from Quickbiooks you can then upload it to your bank and the bank would then set up the payments.

Yes, you're right, QuickBooks Online Advanced Payroll has an option to make payments electronically from one bank account to another through BACS. To be clear the payment is still done and set up through your bank but you can download the payment file and pass it to your bank. You'll just have to set up your payment file settings. Let me guide you how:

From the left menu, select Payroll.
Select the Payroll Settings tab, then select Payment Settings.
Select Add to set up a bank account you'll use to pay your employees.

- File Format (either standard BACS format or bank-specific)
- Sort Code
- Account Number
- Account Name
- Submission Reference (description of the payroll payment appears on your employee’s bank statement)
- Service User Number (SUN)

4. Click Save.

Once done, you can now download your payment file. However, if you haven't set a pay run, you can check out this article: Create a New Pay Run on QuickBooks Online Advanced Payroll. Then proceed to your payment file, here's how:

From the left menu, select Payroll.
Select the Pay Runs tab, then select the pay period you need.
In the Actions tab, select the Download Payment File ▼ dropdown menu.

If you have a single payment file, select Download Payment File.
If you have multiple payment files, select ⚙ Payment File Settings, then select a payment file to use.

Once everything is set up, you can now choose what payment file settings to use every time you run payroll.

I'd also like to share these articles that allow users to download the BACS file for a specific finalised pay run and links to some of our help and guide articles:

Please feel free to add a comment if you have any additional comments or other questions. I'll be right here to help. Take care!

View solution in original post

JonpriL · ‎January 12, 2021

Hello @Master99,

Let me help share how your employee's automated pay runs works in QuickBooks Online Advanced Payroll.

Yes, your employees' payroll will run automatically based on the schedule you created and the expense request setup. You'll also receive an email for the pay runs you need to approve within a day or two.

But don't worry if you missed the approval days, the system will automatically process them so your employees will receive their wages on time. Learn more about automated pay runs with these articles:

On top of that, I've also included this reference for a compilation of articles you can use while working with us: QuickBooks Online Advanced Payroll hub.

If there's anything else that I can help you with, please let me know in the comments below. I'll be here to lend a hand.

Master99 · ‎January 12, 2021

Hi,

No I meant can I make BACS payments through the quickbooks? if the pay run is processed does the system have a function to make a BACS payments?

MariaSoledadG · ‎January 12, 2021

I can see how this will help your business and I'm here to find another way so you can make BACS payment, Master99.

For now, you'll have to search for Third-Party apps if you want to use BACS payment for your employees' payroll.

Then, check out the reviews and ratings to make sure that you've selected the right one. (The app that you see below is only a sample.)

For more information, you can read this article: Set Up Payment File Settings in QuickBooks Online Advanced Payroll.

For your reference, you'll want to a finalise a pay run so it will be available in reports and for the pay run to be visible from the employee portal.

Keep me posted if you have any other concerns about BACS payment. Remember, we're here to assist you as we could.

Master99 · ‎January 12, 2021

I dont understand when i signed up it definitely said that advanced payroll has a BACS option.

Also the link below states that too

https://quickbooks.intuit.com/learn-support/en-uk/employees-and-payroll/how-to-input-employee-bank-d...

Can you please advice and talk me through how i will be able to set it up?

Thans

JoesemM · ‎January 12, 2021

Thanks for getting back to us, @Master99.

You can read more about it here once you have downloaded the file from Quickbiooks you can then upload it to your bank and the bank would then set up the payments.

Yes, you're right, QuickBooks Online Advanced Payroll has an option to make payments electronically from one bank account to another through BACS. To be clear the payment is still done and set up through your bank but you can download the payment file and pass it to your bank. You'll just have to set up your payment file settings. Let me guide you how:

From the left menu, select Payroll.
Select the Payroll Settings tab, then select Payment Settings.
Select Add to set up a bank account you'll use to pay your employees.

- File Format (either standard BACS format or bank-specific)
- Sort Code
- Account Number
- Account Name
- Submission Reference (description of the payroll payment appears on your employee’s bank statement)
- Service User Number (SUN)

4. Click Save.

Once done, you can now download your payment file. However, if you haven't set a pay run, you can check out this article: Create a New Pay Run on QuickBooks Online Advanced Payroll. Then proceed to your payment file, here's how:

From the left menu, select Payroll.
Select the Pay Runs tab, then select the pay period you need.
In the Actions tab, select the Download Payment File ▼ dropdown menu.

If you have a single payment file, select Download Payment File.
If you have multiple payment files, select ⚙ Payment File Settings, then select a payment file to use.

Once everything is set up, you can now choose what payment file settings to use every time you run payroll.

I'd also like to share these articles that allow users to download the BACS file for a specific finalised pay run and links to some of our help and guide articles:

Please feel free to add a comment if you have any additional comments or other questions. I'll be right here to help. Take care!

nick flinders · ‎September 21, 2023

i checked with Monza and they do not process bacs payment files in any format.

so now im confused how to make payments to my employees? I could do it manually from the figures on the payslip but surely that's inviting errors

I thought quickbooks had the ability to pay from the connected business account?

QueenC · ‎September 21, 2023

Welcome to the Community thread, Nick.

I understand that the information provided may have caused some confusion, and I apologize for any frustration it may have caused. Allow me to provide you with additional information regarding how payroll functions in the QuickBooks Online UK version.

It is important to note that having connected bank accounts in QuickBooks Online does not automatically enable us to pay our employees using our bank. In addition to the connected bank accounts, an active payroll subscription is also required to facilitate this process.

Supposedly, we can pay our employees from our connected business accounts in QuickBooks Online (QBO) by following a certain process, but you mentioned that Monza won't process BACS payment files in any format. Although we can utilize a workaround which is to set up a direct deposit so we can transfer funds from your business account, however, direct deposit is unavailable in QBO UK.

With that being said, I'd recommend manually running your payroll, which is what you're currently utilizing right now. I can see how much you would want to automate your payroll, however, it's the best we can do right now, given that your bank doesn't support or process BACS payment files in any format.

Additionally, in addition to paying your employees their regular wages, there may be instances where you need to provide them with additional compensation such as bonuses, overtime pay, expense reimbursement, and more. These additional forms of compensation can vary depending on your specific business needs and the agreements in place with your employees. To assist you in managing these various contribution rates and ensuring accurate compensation, I recommend browsing through the following article. Managing holiday, bonus, and other pay types.

We sincerely appreciate you taking the time to post your question here. It's customers like you who make our Community forum a valuable resource for everyone. If you have any further inquiries or need assistance with any other aspect of QuickBooks Online Payroll, please don't hesitate to ask. We're always here to lend a helping hand. Wishing you continued success in your payroll endeavors!

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