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VBS
Level 2

Regarding new Federal and State compliance rules for direct deposit information

Federal & State compliance ruse for direct deposit accounts.  Requiring "Principal Officers" address, ssn, DOB, physical address, etc.   For church clients I have - there is no "Principal" officer  or as on some,  the board changes the "President of the Board" every year.  What Do you want me to use for these churches?

82 Comments 82
Adrian_A
Moderator

Regarding new Federal and State compliance rules for direct deposit information

Hi there, VBS.

 

We can use either your Company or Master Admin's information in setting up for direct deposit.

 

Since your company will change the President of the Board every year, you can request to replace the primary principal. In doing so, ensure to prepare these requirements:

 

  1. Complete Primary Principal change form.
  2. A request letter signed by all principals on the company letterhead explaining reason for the principal change.
  3. Photocopy of the new principal's government issued ID.
  4. Contact QuickBooks Desktop payroll support to submit the form and other requirements above via Intuit File Exchange.

 

After setting up the direct deposit, you're good to connect your bank account. I've added this reference as your guide: Step 2: Connect your bank account.

 

Get in touch with me if ever you need my assistance in connecting your account. Have a great day!

Luttrells Auto
Level 2

Regarding new Federal and State compliance rules for direct deposit information

Why do I have to provide that information to you since my bank has all of that information.  I very leery about giving your company our personal information.  If I decide not to provide that information, what amount will I be billed for using just the payroll service and not the direct deposit?

Joesem M
QuickBooks Team

Regarding new Federal and State compliance rules for direct deposit information

Thanks for joining this thread, @Luttrells Auto. Let me share some information about changing the account credentials of the Primary Principal.

 

Since you're using QuickBooks Direct Deposit Services, you'll need to send provide a Direct Deposit Primary Principal Change Request. This to make sure that the information in your company file is updated with the new Primary Principal.

 

The complete instruction and downloadable form are provided in this article: Change primary principal for Basic, Standard, and Enhanced Payroll.

 

Once we receive the form, our back-end team will review the request and the attached requirements. Processing takes 3 to 5 business days from the date the complete requirements are received. Please wait for an email confirming the status of your request.

 

If you decide not to provide the information, you'll only be billed with your payroll service and your direct deposit will be canceled. In case you need to create a one-time regular (non-direct deposit) paycheck for an employee, refer to this article: Change a direct deposit paycheck to a regular paycheck in QuickBooks Desktop Payroll.

 

For further assistance, I'd suggest contacting our Payroll Support Team. Our representative has tools capable of pulling up the company account in a secure environment and help you from updating the primary principal information. Just click this article on how to reach them: Contact QuickBooks Desktop support.

 

I've also added this great source where you can find articles that can help you in managing your books in QuickBooks, please head to QBDT help articles at this link. This includes topics such as reconciliation, track income, and expenses, run reports, etc.

 

That's it! Let me know if you have any other questions. I'm here as your number one resource for QuickBooks Desktop. Have a wonderful week!

Luttrells Auto
Level 2

Regarding new Federal and State compliance rules for direct deposit information

The main point is - our bank has all that information!!  There is no need for Intuit/Quickbooks to have that information and with all of the hacking going on these days, the less our information if out there, the better.  In fact I am considering doing our payroll manually.

VBS
Level 2

Regarding new Federal and State compliance rules for direct deposit information

Are you saying that since I (VBS) pay for the enhanced payroll subscription,  and am the Master Admin,  I can use VBS as the principal for each client I have on my payroll subscription?

RCV
QuickBooks Team
QuickBooks Team

Regarding new Federal and State compliance rules for direct deposit information

Thanks for checking in with us, VBS.

 

The Primary Principal is the owner of the company and provides authorization for major account changes. Since you pay the Payroll service, you can be the Payroll Administrator. Wherein you are the company's main contact person for day-to-day payroll issues and activities. The Payroll Administrator should be someone who is authorized to process payroll for the company, who has access to all the company's payroll information, and who can answer questions on behalf of the company principal regarding payroll details. 

 

In some cases, clients can add a secondary principal. This is recommended for companies where payroll is managed by an accountant. Here's how:

  1. Completed Primary Principal change form.
  2. A request letter signed by both primary and secondary principal on the company letterhead stating that they will be adding another principal.
  3. Photocopy of both primary and secondary principals' government issued ID.
  4. Contact QuickBooks Desktop payroll support to submit the form and other requirements above via Intuit File Exchange.

 

To learn more about this one, see the Change primary principal for Basic, Standard, and Enhanced Payroll article. Feel free to visit our Process Payroll page for more insights about managing your payroll in QuickBooks.

 

I'm just one post away if you need a hand with running payroll reports or any QuickBooks related. I'll be here to ensure your success. You have a good one. 

MelissaH1021
Level 1

Regarding new Federal and State compliance rules for direct deposit information

Quickbooks really needs to educate their team on this process. I spent 30 minutes yesterday on a chat waiting for a person to respond and another 30 minutes this morning so that I could upload the documents securely.  The person from Intuit that joined the chat told me that he could not assist me because I did not pay extra for an extra technical support subscription.  "This is a do-it-yourself issue that you will need to resolve on your own," he says. 

 

I am willing to change it own my own, but Quickbooks/Intuit has restricted my access to that information.  Thank you

z1300
Level 1

Regarding new Federal and State compliance rules for direct deposit information

Can you please provide the specific Federal or State Statute information that explains why this personal information is now required? Our company owners are reluctant to provide this information due to not being able to locate any information about this requirement. 

JenoP
QuickBooks Team

Regarding new Federal and State compliance rules for direct deposit information

Joining the thread to help with your question about updating the primary principal, z1300.

 

This guideline is ​​​​​​in compliance with the Office of Foreign Asset Control (OFAC) that falls within the Executive Branch of the U.S. It's a requirement by the U.S. Government to help fight the funding of terrorism and money-laundering activities. This guideline requires us to obtain, verify, and record information that identifies the principal officer listed on an account used for electronic services, including direct deposit. 

 

Here's an article for further details: Principal Officer Verification for Payroll IDV Holds.

 

Let me also share these articles for additional guidance and future reference: 

 

 

Don't hesitate to join us again in the Community or reply to me if you have other questions while working in QuickBooks. We're always here to help and guide you again. 

donnagrail
Level 3

Regarding new Federal and State compliance rules for direct deposit information

So, this isn't a federal or state requirement, it is your requirement.  We already pay for the direct deposit, and there is nothing in your reply that requires Principal Owners to provide you with their personal information.  If a principal leaves a company, the company information doesn't change.  It also does not include all primary principals.  There could be multiple primary principals in a company.  How are you handling the security of this personal information?

 

And since it has been working just fine without this information, why do you suddenly need this information?

donnagrail
Level 3

Regarding new Federal and State compliance rules for direct deposit information

Again on this response:  The primary principal is the company.  You have our primary contact and the company information.  Why are you now requiring personal information for that person?  If that primary contact changes, it is up to the company to make the change by the Primary User authorization.

 

And you are selling my information to a 3rd party, which is unacceptable.

donnagrail
Level 3

Regarding new Federal and State compliance rules for direct deposit information

Then let the government come to my office to procure this information.  My Payroll Direct Deposit has nothing to do with the primary principal.

 

All employees are EVerified, as required by the Dept. of National Security and Labor Law.  If the person I am paying has cleared that system, there is no reason for personal information of the company principals to be floating about in your system.

donnagrail
Level 3

Regarding new Federal and State compliance rules for direct deposit information

This is my other thought.  If OFAC is part of the Treasury, as is the IRS, they can go the records for each company and garner the principal information from the corporate tax returns.

donnagrail
Level 3

Regarding new Federal and State compliance rules for direct deposit information

Good luck with that one!!!!

donnagrail
Level 3

Regarding new Federal and State compliance rules for direct deposit information

And yet still no site on where to find this Law to which you speak.

JasroV
QuickBooks Team

Regarding new Federal and State compliance rules for direct deposit information

I see how important it is in running your business seamlessly, Donna.

 

I also appreciate you for sharing your thoughts about verifying Principal Officers. Allow me to add additional insights regarding this matter. 

 

Recently, QuickBooks mandates every employer to enter their principal officer's information. This is to in line with the Office of Foreign Asset Control (OFAC) in fighting laundering activities. 

 

If the OFAC detects inaccurate information, it can cause delay as they need to run a security check to verify your account. If there are changes made with your company principal, you'll want to update it in QBDT. This way, we can avoid any hurdles in running your business. 


You can also visit these links for the complete details:

 

 

Rest assured, any information you shared with us is strictly confidential. The security and safety of your account is our top priority. 

 

Moreover, I'm adding these articles that you can use for future guidance:
 

 

You can always get back to me if you have other follow-up questions verifying your principal. It's always my pleasure to help you. Keep safe and have a great weekend ahead!

Alternatives
Level 2

Regarding new Federal and State compliance rules for direct deposit information

Wow, you guys are really trying to pull one over on your users.

Shame on you.

 

Alternatives
Level 2

Regarding new Federal and State compliance rules for direct deposit information

Wow... You (Intuit) says "This is a check required by the U.S. Government to fight the funding of terrorism and money-laundering activities."   FIRST THIS IS NOT REQUIRED by the US Governement.

The Office of Foreign Assets Control ("OFAC") of the US Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United​ States. 

You (Intuit) are now subjecting innocent companies to a "OFAC List" of criminals.  SHAME ON YOU.

We will no longer be using your Direct Deposit if this is what you are going to require us to do.

donnagrail
Level 3

Regarding new Federal and State compliance rules for direct deposit information

Just so everybody knows, I personally called OFAC and FinCen.  They do not require us to provide personal information.   We also may be going back to paper checks.  I will not divulge personal information of our principals.

donnagrail
Level 3

Regarding new Federal and State compliance rules for direct deposit information

I just posted that OFAC does not require us as a business to provide anybody with principal personal information.  Neither does FinCen.  And I will ask again, provide me the LAW that you state I am required to comply with.  OFAC and FinCen cannot find that law.

Alternatives
Level 2

Regarding new Federal and State compliance rules for direct deposit information

There is no law!  Intuit has taken it upon themselves to do this... there is absolutely no reason for them to ask for this and then say it is a government requirement.  ...they have to be getting something out of it to benefit them.

marcyD
Level 2

Regarding new Federal and State compliance rules for direct deposit information

Thank you for the response.  However, I do not see any federal mandate involving personal information of employers for the purpose of payroll direct deposits.  Unfortunately, Intuit has decided to suspend a Quickbooks user's ability to use direct deposits if the personal information is not provided.  That leaves users with the choice of providing the intrusive information, switching to paying employees by check, or switching to a different accounting software. 

marcyD
Level 2

Regarding new Federal and State compliance rules for direct deposit information

I have been Googling for the past hour and see no mandate from any agency that requires personal information of employers in connection with the use of direct deposits.  Unfortunately, this is a Quickbooks requirement, and QB will suspend the ability to use direct deposit if the information is not provided. 

keepingmyprivacy7
Level 2

Regarding new Federal and State compliance rules for direct deposit information

You are correct...... there is no such federal or state law. Quickbooks is lying.   Their intrusive request is a company policy...not a legal mandate. Quickbooks now does loans.  I will never give my personal information to a financial institution that already has access to all my company's banking and financial information.  These trumped up  personal information requests often result in hard inquiries on your personal credit reports...via 3rd party company's who deem it necessary for "security checks".   Next Quickbooks and their "partners" will be emailing us with loan solicitations.  Who knows who they will sell our information to.  Data is a trillion dollar industry.   I will never give one company access to everything.  I formed a corporation so my personal information would not be vulnerable.  I am done with intuit.  I AM CANCELING ALL OF MY SOFTWARE......after using them for 12 years.  Others will drink the koolaid...but not me.   I will never pay a company to violate my privacy.       

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