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Intuit

Set up your company payroll for direct deposit

Learn how to set up direct deposit and pay your employees.

With payroll, you can set up direct deposit and pay your employees with electronic deposits directly into their bank accounts.
Before you can use direct deposit, you’ll need to set up your payroll bank account. Direct deposit requires a US bank account that is set up for ACH transactions. After you set up a direct deposit for your company , you can add your employees' information. We’ll walk you through it here.

Note: Intuit will charge you a fee for using direct deposit for employees or contractors. To learn more about the monthly fees, check your subscription.

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

Learn how to set up your direct deposit with:

Step 1: Activate direct deposit

It can take 1-3 business days to get your checking account set up for direct deposit. Once it's set up, you'll use this account to pay your employees and your payroll taxes.

  1. Go to the Employees menu.
  2. Select My Payroll Services.
  3. Select Activate Direct Deposit. (Don’t see Activate Direct Deposit? See Note below)
  4. Complete and review the form. In the Verify Your Company Information section, select Edit. Fill out all required fields including  bank account information that Intuit QuickBooks Payroll will use for Direct Deposit transactions and fees. This is the bank account used to pay your employees.
  5. Select View Agreement.
  6. After reading, select the I have read and agree to the terms of service agreement checkbox.
  7. Answer the questions provided in the Check Security Limits section.
  8. Select Submit. If nothing happens after selecting Submit, remove all the information on the form. This includes information from the Edit links. Manually re-enter the information, then select Submit again.
  9. You will see a confirmation page with Next Steps instructions, which you can print.
  10. Select Return to QuickBooks at the bottom.

Note: If you don’t see the Activate Direct Deposit option, this means the EIN in your QuickBooks Desktop company file was previously used to sign up for direct deposit but was canceled. To reactivate:

  1. Select Employees., and My Payroll Service.
  2. Select Account/Billing Information.
  3. Sign in using your Intuit account credentials.
  4. On the direct deposit box, select Activate and follow the instructions.

Step 2: Verify your bank account

Now that you’ve set up your direct deposit, we’ll need to verify your bank account.

When you give us your initial bank information, Intuit makes 2 small transactions, a deposit and a withdrawal of an amount less than $1.00.  In your bank statement, look for this small transaction from Intuit. When you find it, enter the amount in QuickBooks Desktop to verify the account.

Note: It could be up to 2 days before you see those transactions in your bank account.

To enter those test withdrawals:

  1. Select Employees menu.
  2. Select My Payroll Service.
  3. Choose Activate Direct Deposit.
  4. Select Enter Test Debits.
    (For more information, see Enter Direct Deposit test debits.)

Step 3: Set up your employees’ bank account information in QuickBooks

Would your employees like their paychecks through direct deposit? They’ll need to give you some bank account information.  You'll also need their written permission to deposit their paychecks. You can use this optional authorization form to keep for your records.

Learn how to set up direct deposit for employees in QuickBooks.

Need to pay contractors?  Manage direct deposit for independent contractors in QuickBooks Desktop Payroll.

Step 4: Pay your employees

Wondering how to pay your employees once direct deposit is set up? Create paychecks as you normally would and then, send your direct deposit to Intuit.  It takes 2 business days to deposit paychecks into employees’ bank accounts.

Getting an error in any of these steps? Reach out to QuickBooks Desktop Payroll support for help.

Would your employees like to get paid through direct deposit? They’ll need to give you bank account information from a voided check. You'll also need their written permission to deposit their paychecks. You can use this optional authorization form to keep for your records.

Step 1: Select your employees’ pay type for direct deposit

  1. Go to the Workers or 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 direct deposit for contractors in QuickBooks.

Step 2: Connect your bank account

It can take 1-3 business days to set up a checking account for direct deposit. Once it's set up, you'll use this account to pay your employees and your payroll taxes.

You may have already connected your bank account. If you haven’t, connect and authorize your bank account.

Step 3: Verify your bank account

When you give us your initial bank account information, Intuit makes a small deposit into your account of less than $1.00. You can input that amount to authorize the account for payroll transactions. It might be up to 2 days before you see that deposit.

Learn how to verify test transactions for your account.

Note: If you're using QuickBooks Online Payroll or Intuit Online Payroll and your employees' profiles show their direct deposit as “pending,” you can check the status of your account.

Step 4: Pay your employees

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

Would your employees like to get their paychecks through direct deposit? They’ll need to give you some bank account information from a voided check.  You'll also need their written permission to deposit their paychecks. You can use this optional authorization form to keep for your records.

Step 1: Enable direct deposit for your employees  and 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.

Step 2: Connect your bank account

It can take 1-3 business days to set up a checking account for direct deposit. Once it's set up, you'll use this account to pay your employees and your payroll taxes.

You may have already connected a bank account. If your bank account is not connected, learn how to connect and authorize your bank account.

Step 3: Verify your bank account

When you give us your initial bank account information, Intuit makes a small deposit into your account of less than $1.00. You can input that amount to authorize the account for payroll transactions.  It might be up to 2 days before you see that test deposit.

Learn how to verify test transactions for your account.

Note: If you're using QuickBooks Online Payroll or Intuit Online Payroll and your employees' profiles show their direct deposit as “pending,” you can check the status of your account.

Step 4: Pay your employees and contractors

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

Would your employees like to get their paychecks through direct deposit? They’ll need to give you some bank account information from a voided check.  You'll also need their written permission to deposit their paychecks. You can use this optional authorization form to keep for your records.

Step 1: Enable direct deposit for your employees and 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.

Step 2: Connect your bank account

It can take 1-3 business days to set up a checking account for direct deposit. Once it's set up, you'll use this account to pay your employees and your payroll taxes. You may have already connected a bank account. If your bank account is not connected, learn how to connect and authorize your bank account.

Step 3: Verify your bank account

When you give us your initial bank account information, Intuit makes a small deposit into your account of less than $1.00. You can input that amount to authorize the account for payroll transactions.  It might be up to 2 days before you see that test deposit. Learn how to verify test transactions for your account. Note: If you're using QuickBooks Online Payroll or Intuit Online Payroll and your employees' profiles show their direct deposit as “pending,” you can check the status of your account.

Step 4: Pay your employees and contractors

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

FAQ

Do direct deposits have limits?

To protect against fraud, your account does have a limit on the amount of money you can send with direct deposit.

If you’re planning on running a larger than normal payroll for things like bonuses or pay raises, you can request an increase.

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.

For contractors, you can only pay direct deposit into a single savings or checking account.

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