Direct deposit date issue - possible bug

Flea2424 · ‎June 19, 2024

Since the latest update a month or so ago, when either writing a check or running payroll checks using direct deposit at night, I get the message "Direct deposit checks must be sent by 5:00 p.m. two banking days before the check date. Quickbooks has changed the check date to ..."

The problem is it is currently Tuesday night at approximately 1230am. I'm attempting to write a check for direct deposit on Friday (three days from now). Well before the Wednesday 5pm deadline. Tomorrow morning (possibly after 9am?) when I reopen Quickbooks, it will work properly and allow me to create a direct deposit check for Friday. So for some reason in the "after hours" it adds an extra banking day and wants to put the check date to Monday of next week.

The screenshot attached shows the error message along with the current date and time at the bottom right of the screen.

I almost always work at night, so now I have to wait until tomorrow morning to write these checks which I don't have time for.

Is this a reportable bug ?

Shania_C · ‎June 19, 2024

Welcome to the community, @Flea2424.

I will be offering my knowledge to ease your worries regarding the QuickBooks Desktop (QBDT) direct deposit date issue.

The prompt that appears on your screen is only a reminder that if you are on a 2-day lead time you need to write a direct deposit check on Wednesday before 5:00 PM PST to pay your employees on Friday.

For more detailed information, you can check this article: When to send your direct deposit payroll.

Additionally, if you wish to view your payroll totals, including employee taxes and contributions, you can run a Payroll Summary report in QuickBooks: Create a payroll summary report in QuickBooks

Please get back to us if you have other questions or need clarification about managing direct deposits in QuickBooks Desktop. I'm still available to help. Keep Safe!

BigRedConsulting · ‎June 19, 2024

The reason this is happening is that today - 6/19 - is a Federal bank holiday, and so does not count in the two day rule. You would have to have sent the checks by Tuesday 6/18 at 5pm for a Friday 6/21 payroll.

Today doesn't count in the two day rule because money doesn't move in the banking system today and can't be submitted until tomorrow - just like on weekends.

It's a bit confusing, but correct I think. Consider if a Monday were a bank holiday and you wanted payroll direct deposits to arrive on the Wednesday after. In that case you'd have to send them by the previous Friday because the Monday doesn't count.

This same sort of thing can happen when other bank holidays are mid-week. This year Christmas is on Wednesday, as is New Year's day - and the same thing will happen then.

See https://www.frbservices.org/about/holiday-schedules for the bank holidays for the next five years.

BigRedConsulting · ‎June 19, 2024

@Shania_C RE: The prompt that appears on your screen is only a reminder that if you are on a 2-day lead time you need to write a direct deposit check on Wednesday before 5:00 PM PST to pay your employees on Friday.

Did you even read the OP's post? As today is Wednesday - middle of the day - and @Flea2424 says they've been getting the message right now for a Friday payroll, and have been since yesterday, it's clear you didn't really read it, did you?

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Direct deposit date issue - possible bug