How To Use Direct Deposit In QuickBooks
Direct deposit is an easy way to save time on payroll, but how does direct deposit work with QuickBooks?
QuickBooks allows you to use direct deposit for both employees and vendors (this service may cost extra depending on which QuickBooks payroll plan you choose). Believe it or not, it’s fairly simple to set up direct deposit. Just follow these nine steps and start paying your employees right away.
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How To Use Direct Deposit In QuickBooks
First, we’ll explain how to set up direct deposit in QuickBooks. Then we’ll go over how to pay users using direct deposit.
You can either set up your direct deposit while setting up payroll or by going to Employee>Payroll Info>Direct Deposit.
Step 1: Enter Company Information
To set up your company for direct deposit in QuickBooks, verify your company’s information including the legal name, address, EIN, and industry. Update any owner information if needed.
Step 2: Enter Bank Information
Next, enter your business’s bank information. Select the bank account you want to pay employees from. Indicate whether it is a checking or savings account and enter the legal name, routing number, and account number associated with that bank account. Finally, agree to the terms and conditions at the bottom of the screen.
Step 3: Set Security Limits
As an added security measure, QuickBooks will now make you enter three security checks. Use the drop-down menus and select the most accurate options for your business.
Step 4: Activate Direct Deposit
To verify your bank account, QuickBooks will charge you two small verification amounts. Once you see these charges on your banking records, you can officially activate your direct deposit.
If you need extra help with the following steps, you can download the Direct Deposit Getting Started Guide for some extra support and guidance.
Step 5: Verify Direct Deposit
Once you see the two verification charges in your bank records, go to Employee>My Payroll Service>Activate Direct Deposit. Input the two amounts and click “Next” to finish verifying your bank account.
Step 6: Enter Employees’ Direct Deposit Information
Now that your company is set up for direct deposit, make sure you’ve added the information of the employees that have authorized direct deposit. To do this go to Employee>Employee Center and select the employee whom you wish to set up with direct deposit. Once you can see that employee’s information, go to “Payroll Info” and select “Direct Deposit.”
Click the “Use Direct Deposit for: this employee” box and enter the following information: bank name, account number, account type, and routing number. You can also choose whether to direct deposit the whole amount or split the amount. Click “OK” when done, and then click “OK” on the employee screen to make sure the information has been saved correctly.
Step 7: Run Payroll
Now you’re ready to run payroll using direct deposit! Follow the instructions from earlier to run payroll. When you get to the final screen, click “Send Payroll To Intuit” to pay your employees via direct deposit.
Step 8: Enter Direct Deposit Pin
You will be provided a direct deposit pin that you will need to input to verify the transactions.
Step 9: Print Pay Stubs
Once you’ve successfully paid your employees using direct deposit, don’t forget to print pay stubs. Go to File>Print Forms>Pay Stubs to print pay stubs in QuickBooks.
Now you’ve officially paid your employees using direct deposit and can hand them their pay stubs as proof. If you have any questions about QuickBooks direct deposit, search for the Direct Deposit Getting Started Guide within QuickBooks or call QuickBooks payroll support directly.
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