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Employee did not receive direct deposit created in QuickBooks Desktop Payroll

SOLVEDby QuickBooksQuickBooks Desktop Payroll24Updated over 1 year ago

If your employee doesn't receive their direct deposit on time, these are the steps that will help you get your employee paid.

Check the status of the payroll you have sent, and verify that the employee was included in the payroll.

You can also check the article, When do direct deposits post?

Verify the employee's direct deposit information.

View and update the employee's direct deposit bank account information:

  1. From the QuickBooks Desktop Employees menu, choose Employee List.
  2. Double-click the name of the employee whose payroll information you want to change.
  3. Select the Payroll Info tab.
  4. Select Direct Deposit.
  5. Review and if necessary, update the Routing No. and the Account No. fields.
  6. Select OK twice.

IMPORTANT! Intuit sends the payroll using the employee's bank account information in your QuickBooks Desktop when you created the payroll or paychecks. Changing the direct deposit information in the employee record will not affect any paychecks created prior to the edit.

If the account information is incorrect, you may recover the fund depending on the scenario.

  1. Account/Routing Number is incorrect: Contact the financial institution of the wrong account to confirm the status of the incorrect bank account.
    • Live Account: IMPORTANT! Initiate Reverse a Direct Deposit immediately to ensure a better chance of recovering the funds.
    • Doesn't Exist/Closed: Have the bank rep confirm whether the payroll will be rejected or not.
      • If confirmed, you will receive a reject notice from Intuit as soon as the bank rejects the credit and returns the fund.
      • If not, coordinate with the bank rep in recovering the fund.
  2. The account is for another employee: If the wrong bank account is owned by another employee, here are your options to recover the fund:
    • Have an internal arrangement with the employee, who owns the wrong bank account, in returning the fund (cash, check, etc.).
    • If needed, with the agreement of the employee who owns the wrong bank account, initiate Reverse a Direct Deposit (IMPORTANT! Must be done within 5 business days from the posting date).
  3. The account is a closed account of the employee: You may have updated the bank account of the employee after creating the paycheck. To recover the fund:
    • You or the employee can contact the employee's bank to confirm whether the payroll will be rejected or not.
    • If the payroll will be rejected, you will receive a reject notice from Intuit as soon as the bank rejects the credit.
    • If not, coordinate with the bank rep in recovering the fund.

Create a check for the employee.

To pay the employee, see the following options:

Create a regular check:

  1. From the Banking menu, choose Write Checks.
  2. Enter the date as the date of the original paycheck.
  3. On the check, in Pay to the Order of, select the employee for whom to issue the check.
  4. In the $ (amount) field, enter the net amount of the direct deposit.
  5. On the Expenses tab, in the Account column, select Direct Deposit Liabilities. (Select Cancel if prompted to pay payroll liabilities.)
  6. Check the Print Later box at the top of the page, next to the Print icon.
  7. Select Save & Close. Since this is a paper check, it does not need to be transmitted to Intuit.

Change the direct deposit paycheck to a manual paycheck for printing (QuickBooks Desktop Payroll Assisted does not allow this option as it may affect other accounts):

  1. Choose Banking > Use Register.
  2. Double-click the direct deposit check.
  3. Select the Paycheck Detail button.
  4. Uncheck the Direct Deposit option on the upper right.
  5. Select OK.
  6. Verify that there is a dollar amount on the check before printing the check.
  7. Give the check to your employee.

Resend the employee's paycheck via Direct Deposit (additional fees may apply). This is not recommended for QuickBooks Desktop Payroll Assisted customer as it may affect taxes, and should not be done if the paycheck is dated in a prior quarter.

  1. Void the rejected Direct Deposit paycheck.
  2. To recreate the paycheck, choose Employees > Pay Employees. Run an Unscheduled Payroll.
  3. Enter the check date and pay period to match the voided check.
  4. In the Preview Paycheck window, ensure that Use Direct Deposit in the upper right corner is checked.
  5. Recreate the check as it was before by entering hours, salary, and/or other payroll items.
  6. Select Create to record the check.
  7. Send the payroll data to Direct Deposit.

Connect to Intuit to enter a deposit to offset the rejected payroll.

After receiving a reject notice from your employee's bank account, Intuit will create a deposit to your Direct Deposit Liabilities chart of account. Send a zero payroll to see the deposit. If the deposit does not appear in the Direct Deposit Liabilities account it will be entered into the register the next time payroll is sent.

Note: Once the zero payroll has been successfully completed, the Payroll Confirmation Report will not contain the information of the direct deposit reversal. To find the direct deposit return information, you need to look in the bank register. The direct deposit return will have the same date as the day the Direct Deposit was rejected back to Intuit and will post to the Direct Deposit Liabilities chart of accounts register.

If you are still not able to see the deposit in your QuickBooks Desktop after getting the payroll reject notice from Intuit, you will have to manually enter a deposit.

Manually enter a deposit in QuickBooks Desktop for the rejected payroll:

  1. Go to Banking > Make deposit.
  2. Select the Deposit To list and choose the bank account you want to deposit into.
  3. In the Date field enter the date the rejected funds were returned.
  4. In the Received From column, choose the QuickBooks Payroll Service vendor.
  5. In the From Account field enter the Direct Deposit Liabilities account.
  6. In Memo enter the employee name.
  7. In the Amount field enter the amount of the rejected direct deposit.
  8. Skip Check No, and choose a method of payment and a class if you use class tracking.
  9. Select Save & Close.
  10. Check the Direct Deposit Liabilities balance to confirm that it is now correct.

If you would like to associate this deposit to the individual employee, you can locate this transaction in the register and add the Employee name to the Payee line.

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