Thank you for your inquiry about the payroll processing timeline in QuickBooks Online Payroll, @vmkoncul. I’m happy to provide you with the information you need.
When you pay your employees with paper checks in QuickBooks, those checks are generated on the same day. However, if you choose direct deposit, it's important to be aware of the lead time for payments to reach your employees.
You can send direct payments either the same day or the next day. In some cases, other accounts may have a 5-day direct deposit lead time. To ensure your payments are processed on time, we recommend reviewing your direct deposit funding timeline.
Here’s a quick overview of the direct deposit processing times:
- Same-Day lead time: Employees receive their payment the same day you submit your payroll.
- Next-Day lead time: Employees are paid on the next banking day after you submit your payroll.
- 2-Day lead time: Employees will receive their payment two banking days after you submit your payroll.
- 5-Day lead time: Employees are paid five banking days after you submit your payroll.
See this article for reference: When to send your direct deposit payroll.
Moreover, considering that weekends and federal holidays are non-banking days, please know that direct deposits won't be processed during these times. For more information, check out this article: How do federal holidays affect my direct deposit?
If you're interested in generating and customizing your payroll reports in QuickBooks, check out this article: Run payroll reports
You're always welcome to post here anytime if you have other concerns about payroll processing time in QuickBooks, @vmkoncul. We're ready to help.
