Learn how to set up direct deposit to pay your employees and contractors in QuickBooks Online Payroll and QuickBooks Desktop Payroll.
Direct deposit is a convenient way to pay your employees and contractors. You don’t have to worry about handwriting or printing paychecks each payday. To pay your employees or contractors with direct deposit, you’ll need a U.S. bank account that’s set up for ACH transactions.
There are fees to use direct deposit. Check your payroll subscription.
Follow the steps below for your payroll product to set up direct deposit.
|Note: Not sure which payroll service you have? Here's how to find your payroll service.|
Step 1: Gather your business, bank, and principal officer info
To set up direct deposit for your company, you’ll need the following info:
- Business name, address, and EIN
- Principal officer’s Social Security number, birth date, and home address
- Online bank credentials, or your company’s bank routing and account numbers
- Employees’ or contractors’ bank account info
Step 2: Connect your bank account
You may be able to connect your bank account instantly through Instant Bank Verification and use direct deposit for your team right away.
Step 3: Verify your bank account (if you couldn’t connect instantly)
If you weren't able to connect your bank account instantly, we ping your account with a test debit of less than $1.00. You'll enter that amount to authorize your account for payroll transactions. It can take up to 2 days before you see that debit.
Learn how to verify your bank account.
Step 4: Set up your employees’ direct deposit
Need to pay contractors? Set up and manage direct deposit for your contractors.
Now you’re ready to pay your employees and contractors with direct deposit.
Do direct deposits have limits?
Yes. There are two limits. A company total limit, and a per employee limit. This is to protect you against fraud.
If you use QuickBooks Online Payroll, you can see your direct deposit limit in your Payroll Settings, Direct deposit.
You can request a direct deposit limit increase if your payroll is higher than your limits, or you need to pay out bonuses.
Can I pay anything else with direct deposit?
You can only use Intuit’s direct deposit services to pay your employees or contractors. To pay any other company expenses, you will need to use another method of payment.