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Level 1

Direct Deposit Liabilities

I am in the process of cleaning up balances in certain accounts, and I noticed that there is a positive balance in the direct deposit liabilities account. I went through all the charges in there and it appears that the positive balance is due to when a wrong account was used to pay an employee. How do I adjust this to get it to zero out? Thank you!

2 Comments 2
QuickBooks Team
QuickBooks Team

Direct Deposit Liabilities

Let me share some information about the account balance for Direct Deposit liabilities, jval1.


The Direct Deposit (DD) liabilities account should always have a balance of zero. This causes by missing paychecks/liability checks, duplicate paychecks, or duplicate liability checks. For missing liability check that stemmed from a DD transaction, we'll need to recreate a missing or deleted DD payroll liability check in QuickBooks.


If it is modified paycheck information, you might have cleared the checkbox for Use Direct Deposit on a DD paycheck. Then, it was already been sent to Intuit in order to print it as a paper check. If this is the case, change the check back to how it was originally and if you need to account for the check number on the printer paper check, recreate it as Write Check. Once done, assign the check number that on was on the paper check.


If you have a duplicate paycheck for an employee that stemmed from a Direct Deposit transaction, we'll need to contact our Payroll Support Team to help you with this one. You may send a message via chat, call us at a time convenient to you, or we’ll get in touch with you instead. To ensure we address your concern, our representatives are available from 6:00 AM to 6:00 PM on weekdays and 6:00 AM - 3:00 PM on Saturdays, PST. See our support hours and types for more details about this one. Here's how: 

  1. Click the Help icon on the top menu. 
  2. Choose QuickBooks Desktop Help
  3. Tap Contact us.
  4. Select Search for something else and enter your concern in the Tell us more about your question: field. 
  5. Tap Search
  6. Choose Start a Message or Get Phone Number to connect with our support. 


Feel free to browse this link here if you need help with adding and managing your tax forms. It'll route you to our general payroll topics with articles.


I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. You have a good one. 

Amber Robinson
Level 1

Direct Deposit Liabilities

I am taking over the bookkeeping for a non-profit and the previous bookkeeper just uploaded his QBD company file to our new QBO account. I was checking the P&L and Balance Sheet reports for differences between the two versions and found a few balance sheet line item differences for the previous/most recently closed month in the following payroll accounts - 

  • Direct Deposit Liabilities (this did not have a balance in QBD, but one appeared in QBO)
  • Federal W/H (this did not have a balance in QBD, but one appeared in QBO)
  • FICA/Medi Payable (amount difference in QBO vs. QBD)
  • FUTA Payable (amount difference in QBO vs. QBD)

Questions -

  1. Can you explain why this is happening? I would greatly appreciate it, as I've read a lot of support articles and user questions, but can't find anything directly related to the QBD to QBO conversion. I know that I shouldn't ever have a balance in Direct Deposit Liabilities, but the reasons listed for why it would happen don't seem to apply to my situation. Also, why are the other line items affected?
  2. How do I fix this? I'm not an accountant and I don't have an in-depth understanding of payroll accounting, so I I need help. I am going to sign up for QB's Payroll Core and will be able to process payroll, but I can't trouble shoot this existing issue on my own.  


Thank you for your help!

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