Set up your company payroll for direct deposit

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 for you to pay your employees and contractors without handwriting or printing paychecks. To set up and use direct deposit, your business needs a US bank account that’s set up for bank transfer (ACH) transactions. Fees may apply for using direct deposit, so check your payroll subscription for details.

Direct deposit setup requirements

To set up direct deposit for your company, you’ll need the following:

• 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 1: Connect your bank account

You may have the option to connect your bank account instantly through Instant Bank Verification, which lets you use direct deposit right away. Follow the steps for your product.

QuickBooks Online Payroll

For a better experience, open this article in QuickBooks Online. Launch side-by-side view

If you're new to payroll:

1. Follow this link to complete the steps in product
2. Select Get started.
3. From the Business section, select Edit.
4. Add your federal tax ID number and any other missing info. Select Next.
5. Add the Principal Officer's name, address, date of birth, and Social Security number. Select Next.
6. Select Add new bank account.
7. Search for your bank's name. You may be asked to enter your online banking user ID and password.
8. If you can't connect automatically, select Enter bank info manually. Enter your routing and account numbers, then select Save.
9. Select Accept and Submit.

If you need to change your existing payroll bank account, check out Change your payroll bank account.

Note: When you update your bank info, you may need to enter a code sent to your phone number to save your changes.

QuickBooks Desktop Payroll

1. Open QuickBooks and sign in with the QuickBooks admin username and password.
2. Go to Employees, then My Payroll Service, and select Activate Direct Deposit.
3. Select Get Started. If you don’t see the Get Started screen:
   1. Select I’m the admin, and I’m the primary person who can… and enter the admin’s email address or user ID.
   2. Select Continue.
   3. Enter the email or user ID and password for your Intuit Account, then select Sign In. If you don't have an Intuit Account, select the Create an account link. If you’re already signed into your Intuit Account in QuickBooks, you won’t see this screen.
   4. Select Get Started.
4. From the Business tab, select Start. Fill in the info and select Next.
5. Fill in the Principal officer info and select Next.
6. Select Add new bank account.
7. Enter the name of your bank and your online bank credentials, or your bank routing and account numbers.
8. Create a PIN that you’ll use each time you send your payroll.
9. Confirm your PIN twice, then select Submit.
10. Select Next, then Accept and Submit.
11. If prompted, confirm the Principal officer’s full Social Security number and select Submit.

After submitting, you'll see a confirmation message. If your bank account connected instantly, you can proceed to Step 3. If not, you must first verify your bank account.

Step 2: Verify your bank account (if needed)

If you couldn't connect your bank account instantly, Intuit will send a test debit of less than $1.00 to your account. This can take up to two business days to appear. Once you see the debit, you must enter the exact amount in QuickBooks to authorize your account for payroll transactions.

For detailed instructions, learn how to verify your bank account.

Step 3: Set up employees and contractors for direct deposit

Once your company bank account is set up and verified, you can add your employees' and contractors' bank info.

• To pay employees, see Set up direct deposit for employees.
• To pay contractors, see Set up and manage direct deposit for your contractors.

After completing these steps, you'll be ready to pay your team with direct deposit.

FAQ

Do direct deposits have limits?

Yes, there's a company total limit and a per-employee limit to protect you against fraud. If you use QuickBooks Online Payroll, you can view your limit in Payroll Settings under Direct deposit. You can request a direct deposit limit increase if your payroll exceeds your limits or if you need to pay bonuses. 

Can I pay anything else with direct deposit?

No, you can only use Intuit's direct deposit services to pay your employees or contractors. You'll need to use a different payment method for other company expenses.