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Set up direct deposit for employees

SOLVED•by QuickBooks•QuickBooks Desktop Payroll•114•Updated 2 weeks ago

Learn how to set up and manage your employees' direct deposit in payroll.

With payroll, you can pay your employees with direct deposit into their checking, savings, pay card, or money market accounts. Here's how to set up and add employees to direct deposit. Accounts must be United States accounts that accept ACH transactions.

Note: Not sure which payroll service you have? Here's how to find your payroll service.

Step 1: Set up your company payroll for direct deposit

See Set up your company payroll for direct deposit for detailed steps.

Step 2: Get a direct deposit authorization form

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

  1. Go to Taxes and select Payroll Tax.
  2. Select Employee Setup.
  3. When you reach Authorization for Direct Deposit, select Bank Verification.
  4. Select View and print.

Obtain a completed Direct Deposit Authorization form and a voided check from the employee's bank account (not a deposit slip). The authorization form and voided check are for your records only; you don't need to submit them to QuickBooks Desktop.

  1. Select Taxes & Forms and select Employee & Contractor Setup.
  2. Select Bank Verification, then View and print.

Obtain a completed Direct Deposit Authorization form and a voided check from the employee’s bank account (not a deposit slip). The authorization form and voided check are for your records, only; you don't need to send them to Intuit.

Step 3: Add direct deposit to your employees

After you complete this setup, the next paycheck you create for the employee will be direct deposit. Select your payroll for steps.

  1. Go to the Payroll menu , then select Employees.
  2. Select the employee's name.
  3. Select the Edit ✎ icon next to Pay.
  4. Under How do you want to pay this employee? select how the employee wants to receive their pay.  (Splits can only be done as a dollar amount, not as a percentage.):
    • Direct deposit
    • Direct deposit to two accounts
    • Direct deposit with balance as a check
  5. Enter the routing and account numbers from the employee's voided check and select Done.

Need to pay contractors? Set up and manage direct deposit for your contractors.

If the employee's bank says that the account should be tagged as money market, inform the employee that QuickBooks Desktop only accepts checking or savings accounts, so you should select checking.

  1. Select Employees and choose Employee Center to open your employee list.
  2. Select the employee's name.
  3. Select Payroll Info tab.
  4. Select Direct Deposit button.
  5. In the Direct Deposit window, select Use Direct Deposit for [employee's name].
  6. Select whether to deposit the paycheck into one or two accounts.
  7. Enter the employee's financial institution information (Bank Name, Routing No., Account No., and Account Type).
  8. If you choose to deposit to two accounts, enter the amount or percentage that the employee wants to deposit to the first account in the Amount to Deposit field. The remainder goes to the second account.
  9. Select OK to save the information.
  10. Enter your direct deposit PIN when prompted.

Need to pay contractors? Set up and manage direct deposit for your contractors.

Employees

  1. Go to Employees.
  2. Select the employee's Pay Method.
  3. Select one of the choices (splits can only be done as a dollar amount, not as a percentage).
    • Direct deposit
    • Direct deposit to 2 accounts
    • Direct deposit with balance as a check
  4. Enter the bank account info from the employee's voided check.
  5. Select OK.

Contractors

  1. Go to Employees.
  2. Select the contractor's Pay Method.
  3. In the Payment Information section, select Direct deposit as the contractor's pay method.
  4. Select OK.
  5. Enter the bank account info from the contractor's voided check. Note that split direct deposit is not available for contractors.

Employees

  1. Go to Employees.
  2. Select the employee's Pay Method.
  3. Select Edit to switch Pay method to (splits can only be done as a dollar amount—not as a percentage):
    • Direct deposit
    • Direct deposit to 2 accounts
    • Direct deposit with balance as a check
  4. Enter the bank account info from the employee's voided check.
  5. Select Save.

Contractors

  1. Go to Employees.
  2. Select the contractor's Pay Method, then Edit.
  3. Select Edit next to the Pay method.
  4. Select Direct Deposit and enter the bank account info from the voided check. Note that split direct deposit is not available for contractors.
  5. Select OK.

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