I have my employees on direct deposit. The first payday is showing "check" as pay method. I also don't see money/tax deducted from my bank account. What happened?

Glad to have you here in the Community, @SEED.

The reason why it's showing as a check on the payment method because the direct deposit may be turned off when running payroll. That's why the money/tax didn't deduct from your bank.

Also, let's make sure the direct deposit was completely set up. To check, here's how:

1. Go to the Gear icon.
2. Under Your Company, select Payroll settings.
3. Select Company under Bank Accounts.
4. Depending on the status, this is what will appear:

• Connected/Active: Bank account details connected to send payroll with QuickBooks Online and option to Update it.
• Pending: "We're getting your bank account ready." Information about test transactions will also show.
• Waiting for verification: You have the option to enter a test transaction.
• Failed: "Update your bank account. We couldn't verify this bank account."

For more information, you can check this article: How to check your direct deposit setup status.

Lastly, I've added these articles to help you manage your direct deposit payroll:

• When do direct deposits post?
• Resolve Direct Deposit Issues

Get back to us if you have other questions. We're always here to help. Take care!

Thank you Maybelle. I double-checked that my bank account is connected. 

Is it possible to void the check and re-run payroll with direct deposit? 

Thanks for the quick reply, @SEED.

Yes, it's possible to void the check and re-run payroll with direct deposit in QuickBooks Online (QBO). I'm happy to walk you through the process.

Voiding checks change the records and update the dollar amount to zero. Also, this option will appear if you designated that the check has been cashed.

Here's how: 

1. Go to Payroll, then choose Employees. 
2. Under Run payroll, hit Paycheck list. 
3. Pick checks, then click Void. 
4. Hit I understand that this action cannot be undone checkbox. 
5. Tap Void Paycheck. 

You may refer to this article: Delete or void employee paychecks.

You can also create a report for voided checks in QBO by opening the Transaction List by Date Report. Then select Check in the Transaction Type drop-down and type Void in the Memo field. 

Once confirmed that the company and employee bank are set up, you can now re-process the payroll. For the complete steps, you may check this link: Create paychecks in online payroll.

If the setup is unsuccessful, then please set it up again. Remember that the enrollment process takes three business days. For more information, visit this article: Set up your company payroll for direct deposit. 

I've also added these articles about handling issues in DD, employee transactions, and other topics. 

• Edit or delete paychecks in Online Payroll.
• Fix direct deposit issues
• Help Articles

Place a question below if you have anything else in mind. I'll be sure to get back to you.