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Pay employees and contractors with direct deposit

Learn about direct deposit and how to pay your workers electronically. These steps are for all online payroll services from Intuit.

Direct deposit lets you easily deposit funds into your employee or contractor’s checking or savings account. This makes payday a breeze.

To use direct deposit, you’ll need to set up your payroll account and add your worker’s info. Here's how to get started.

If your sign-in screen looks like this, you use QuickBooks Online Payroll.

If your sign-in screen looks like this, you use Intuit Online Payroll.

Step1: Set up your payroll account

First, follow the steps to set up your payroll account.

On average, it takes 1-3 business days to connect a checking account. You'll use this account to fund your direct deposits and electronic tax payments for payroll. During the setup, you may need to verify test transactions for your accounts.

If you're using QuickBooks Online Payroll or Intuit Online Payroll and your workers' profiles show their direct deposit is “pending,” check the status of your account.

Step 2: Add your worker's info

After you set up your accounts, add your workers' bank and direct deposit method.

Next Steps: Pay your workers

It’s time for payday. Now that you're setup, you're ready to create checks for your workers:


You can use Intuit’s online payroll services to pay both W-2 employees and 1099-Misc contractors with bank accounts found within the United States.

There's a flat monthly surcharge for each worker you pay with online payroll. This is in addition to your monthly payroll service fee.

Not sure which version you have? Find out which version of Online payroll you’re using.

You can pay your workers a few different ways:

  • For W-2 employees, you have three payment options:
    • Deposit funds into a standard checking or savings account.
    • Split deposits into two accounts.
    • Deposit a portion of the check into an account and add what's leftover to a paper check.
  •  For contractors, you can only pay into a single savings or checking account.

You can give this optional authorization form to your employees or contractors to get their info. It asks for their bank account, routing numbers, and payment preferences. The form itself is for your records only.

Intuit also supports pay cards for employees that don’t have a checking account and don’t paper checks. To learn more, check out the Intuit Turbo℠ Pay Prepaid Visa® Card.

Processing and approval cut off times depend on your payroll service. To learn more, check out the direct deposit calendar.

Banks only deposit direct deposit funds during working business days (Monday - Friday) using ACH. The National Automated Clearinghouse Association (NACHA) allow banks until 5:00 pm local time to deposit funds into a bank account.

Weekends and banking holidays may impact payroll processing times. If they overlap with your usual payday, plan ahead so your employees are paid on time.

Important: Did your worker not get your direct deposit? Did your bank reject the funds? Here's how to resolve a rejected direct deposit and track down the payments with your bank.

Your account has a limit on the amount of money you can send with direct deposit services. This is your direct deposit limit.

You can request an increase if you plan to run a larger than normal payroll for things like bonuses or pay raises.

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