Set up direct deposit for employees

Pay your employees with direct deposit to their checking or savings accounts. This guide will walk you through setting up direct deposit for your company and adding your employees' bank information in QuickBooks.

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

Prerequisites

To set up direct deposit, you must have a US bank account that is set up for ACH transactions. 

Gather the following information before you start the setup process:

• Business information: Legal name, address, and Employer Identification Number (EIN).
• Principal officer information: Full name, home address, Social Security number, and date of birth.
• Bank information: Your company's bank routing and account numbers, or your online banking credentials.

Note: If your employee can access to the QuickBooks Workforce web portal, they may be able to add their own banking information. To learn more, see Understand employee direct deposit changes through QuickBooks Workforce.

Step 1: Set up direct deposit for your company

Check out Set up your company payroll for direct deposit for detailed steps.

Step 2: Get a direct deposit authorization form

You need bank information from your employee to set up direct deposit for them. You can get this information with a voided check or by using a direct deposit authorization form. 

Follow the steps for your Payroll account. 

QuickBooks Online Payroll 

Your employees need to fill out, sign, and date a direct deposit authorization form. They’ll also need to attach a voided check from their bank account. This voided check shouldn’t be a deposit slip. This is for your records only. 

Follow this link to complete the steps in product 

1. Select Filings then select Employee Setup.
2. Next to Authorization for Direct Deposit, select Bank Verification.
3. Select View.

QuickBooks Desktop Payroll

Request a voided check or specific banking information such as bank account and routing number directly from your employee. 

Step 3: Add direct deposit information for your employee

After your company account is set up and you have your employee’s bank information, add it to your account. 

Follow the steps for your Payroll account. 

QuickBooks Online Payroll

To manually enter your employee’s direct deposit information, follow these steps.  

Follow this link to complete the steps in product 

1. Select your employee.
2. From the Payment method section, select Start or Edit.
3. From the Payment method dropdown, select Direct deposit.
4. Choose a direct deposit method:
   • Direct deposit to one account
   • Direct deposit to two accounts (split by dollar amount or percentage)
   • Direct deposit with balance as a check
5. Enter the routing and account numbers from the employee's voided check.
6. Select Save.

QuickBooks Desktop Payroll

1. Go to Employees and select Employee Center.
2. Select the employee's name.
3. Select the Payroll Info tab.
4. Select the Direct Deposit button.
5. In the Direct Deposit window, check the box for Use Direct Deposit for [employee's name].
6. Choose 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 two accounts, enter the amount or percentage for the first account. The remainder will go to the second account.
9. Select OK to save, and enter your direct deposit PIN when prompted.

Result

After you complete these steps, the employee's next paycheck will be issued through direct deposit.

Related link

Set up and manage direct deposit for your contractors.