Hot to set up Direct deposit

Welcome to the Community, @browneye.

Let me walk you through how to set up direct deposit to your bank account in QuickBooks Online.

If you're setting up direct deposit for employees to pay into their checking, savings, or money market accounts. Accounts must be United States accounts and accept ACH transactions. you can follow these steps:

Step 1: Set up your company payroll for direct deposit.

Step 2: Get a direct deposit authorization form.

Have your employees fill out, sign, and date a direct deposit authorization form and attach a voided check from the employee’s bank account (not a deposit slip). Select your payroll for the next steps.

Moreover, I'll be sharing the following resources to help personalize and manage your invoices in QBO:

1. Go to Taxes and select Payroll Tax.
2. Select Filings then select Employee Setup.
3. Next to Authorization for Direct Deposit, select Bank Verification.
4. Select View.

Step 3: Add direct deposit to your employees.

After you complete this setup, the next paycheck you create for the employee will be a direct deposit.

1. Go to Payroll, then Employees.
2. Select your employee.
3. From the Payment method, select Start or Edit.
4. From the Payment method ▼ dropdown, select Direct Deposit.
5. Choose a Direct deposit method (Splits can be done as a dollar amount or as a percentage.):

• Direct deposit to one account
• Direct deposit to two accounts
• Direct deposit with balance as a check

1. Enter the routing and account numbers from the employee's voided check and select Done.

Moreover, if you are setting up for your vendor or contractor. Here is an article to learn how to set up direct deposit for independent contractors in QuickBooks Online Payroll: Set up and manage direct deposit for your contractors.

Furthermore, these articles can help you learn how to set up direct deposit to pay your employees and contractors also how to send your direct deposit payroll to pay your employees on time:

• Set up your company payroll for direct deposit.
• When to send your direct deposit payroll

If you have more questions or clarification with setting up direct deposit in QuickBooks Online, please let me know by leaving a comment below. I'd be more than happy to work with you. Keep Safe!

Payroll ends on a Tuesday for us. (weekly) The employees are accustomed to getting their checks on Friday.

The payroll would end on January 28th. Payroll time would be January 22nd January 28th.  Payroll will be submitted on Wednesday morning the 29th in order for the employees to receive the direct deposit on Friday the 31st. The check will be dated January 28th (the date of payroll ending.)  Please advise if this is the way the direct deposit needs to be dated.

Indeed, BRe99, the processing time for direct deposits varies based on your payroll lead time, with options for Same-day or Next-day funding. Let me elaborate these further with you.

In QuickBooks Online Payroll, if the pay period ends on Tuesdays of every week and payday is on Fridays, you'll have to submit payroll by Wednesday (January 29th) before 5:00 PM PT. Employees will receive the submitted checks on a 2-day lead time basis and will be dated on January 31st.

With that, please know that employee payroll processing depends on your direct deposit lead time, where there are instances when a 5-day funding period is required.

To verify your direct deposit lead time, refer to these steps:

1. In your QBO account, go to Settings and select Payroll Settings.
2. Scroll to the Direct deposit section. You'll see your funding time above your deposit limits.

Also, these deposits are processed only on banking days.

I'll include these references to help you manage incorrect checks paid to the wrong employee and request for a reversal:

• Handle a direct deposit paycheck that was not received by an employee
• Reverse a direct deposit in QuickBooks Payroll

On the other hand, you'll want to explore QuickBooks Payroll to take data processing to the next level. It helps you organize your deposits and provide assistance in managing your overall account.

Your insights are valuable to us, and I want to provide you with further assistance in managing employee payroll in your account. Please leave a reply in the comments below. Stay safe.