Thank you for posting here in the Community, Mariellen. I'm here to share information about direct deposit processing time.
Once your payroll is processed, your employees' accounts will be credited on the specific date you've chosen. Remember that the pay date has to be at least two business days after submitting the check. For example, if you submit a paycheck by or before 5 PM on Monday and set the pay date for Wednesday, the funds will be deposited in your employees' accounts by 9 AM on Wednesday, provided there are no banking holidays within this period.
It depends on what payroll products you're using. If you're not sure which payroll service you have, here's how you can find it: Which payroll service do I have?
In QuickBooks Online (QBO), depending on whether you have Payroll Enhanced or Core versions, there are two lead time options: a 1-day lead time or a 5-day lead time. With a 1-day lead time, you are required to submit your payroll before 5:00 PM PST on the business day before payday. Until 4:59 PM PST on that day, you can still make changes such as voiding or adding paychecks. However, once it is past 5:00 PM, the payroll processing begins and no further modifications can be made.
On the other hand, a 5-day lead time means you need to submit your payroll before 5:00 PM PST, 5 business days before payday. If payday is on a Friday, you’ll need to submit payroll the Friday before payday. After you submit your payroll, your money will be drawn from your account that day. Then, your employees will see the money on payday.
For QBO Payroll Full Service, Premium, and Elite, you may have same-day direct deposit or a 5-day lead time. For more details, you can check out this article: Understanding lead times and your payroll submission days.
You can check this article to learn what you can do if you get an error message about direct deposit limits when you process payroll in QuickBooks Online: Get help if you’re over a direct deposit limit.
Let me know if you have questions about direct deposit. I'm always here to help. Have a great day.
