Let me chime in and share some insights on how to manage rejected direct deposit, @anh cao.
To pay your employee, let's create a regular check. Here's how:
- Go to the Banking menu, and then select Write Checks.
- Enter the date as the date of the original paycheck.
- On the check, in Pay to the Order of, choose the employee for whom to issue the check.
- In the $ (amount) field, input the net amount of the direct deposit.
- On the Expenses tab, in the Account column, click Direct Deposit Liabilities. (Remember to select Cancel if prompted to pay payroll liabilities.)
- Check the Print Later box at the top of the page, next to the Print icon.
- Once done, click Save & Close.
Then, change the direct deposit paycheck to a manual paycheck and resend the employee's paycheck via direct deposit. (This is not applicable for Desktop Payroll Assisted). For more details, please check out this article: Employee did not receive direct deposit created in QuickBooks Desktop Payroll.
Also, after you receive a reject notice from your employee's bank account, Intuit will create a deposit to your Direct Deposit Liabilities chart of account. You'll have to send a zero payroll to see the deposit. If the deposit does not appear in the Direct Deposit Liabilities account, it will be entered into the register the next time payroll is sent.
I've also added this resource to guide you in creating direct deposit paychecks in QuickBooks: Send payroll and direct deposit paychecks in QuickBooks Desktop Payroll.
Please let me know if you have a follow-up question. I'll make sure to get back to you right away. Have a blissful day.
