As a business owner, you are answerable for several different elements of your operation. Besides taking care of the ins and outs of running your company, you also have to manage your staff, including paying them. If you have ever been employed in another business, you probably know direct deposit.
What is Direct Deposit?
Direct deposit at the most basic level is an electronic transfer of funds from one bank account to the next. This ensures, as an employer, that you move the correct funds from your company bank account to your employee’s bank account. Therefore, on the other hand, direct deposit means that your employee makes an electronic payment directly from your bank account.
Direct deposit is a perfect way for both you and your workers to make the payday easier. But make sure your payroll process is flexible, straightforward when you activate direct deposit in QuickBooks for your workers, and you know your workers will be paid on time. Once you start direct deposit for your business in QuickBooks Desktop Payroll then you can easily set up, remove, and edit direct deposit service for your employees.
Also Read: Receive too Many ACH Returns in QuickBooks
Consider the Below Mentioned Information Before you Setup Direct Deposit for Employees QuickBooks
- You must also enter bank account details directly from a check, not from a deposit slip, as the details on a deposit slip are not valid for direct deposit.
- Account information needs to be inside the U.S. Automated clearing house (ACH) systems outside the United States are distinct and do not align with the QuickBooks Desktop.
- Tell the routing card provider and account number information for the pay cards.
- Money market accounts of workers may be used for direct deposit as long as they accept ACH transactions. Ask the employee to verify with their bank whether they can tag the money market account as savings or checking.
- The employee would have to collect the deposit routing number from the bank or other financial company for savings accounts.
- When the employee’s bank says the account should be marked as a money market, let the employee know that QuickBooks Desktop only supports checking or savings accounts, and they can pick checks.
Steps to Setup Direct Deposit for Employees QuickBooks
💠 Initially, Select employees and then select the Employee Center in order to open the employee list
💠 Next, double-click on desired employee’s name
💠 Select and open Payroll Info tab
💠 Then click on Direct Deposit button
💠 After that, select the option named “Use Direct Deposit for” within the same window
💠 Then choose to deposit a paycheck as per your convenience either select one or two accounts
💠 Once you are done then fill the employee’s financial institution related all the relevant information
💠 In case, you choose two accounts for paycheck then enter the amount or percentage
💠 Then click on the Ok button to save the employee’s information
💠 At last, enter the direct deposit PIN if asked.
Total Time: 35 minutes
Edit Employees Direct Deposit Information
You can also update the information related to the employee’s bank account on the same page where you set it up.
💠 The very first, open the paycheck and then go the window named Paycheck Detail
💠 Untick the Use Direct Deposit option on the paycheck detail
💠 Then hit the Save & close button
💠 At last, open paycheck once again and click on the Use Direct Deposit option,
💠 make sure you have saved.
You can Also Delete Direct Deposit from an Employee’s Profile Permanently
In case, if you don’t want to pay an employee any more for direct deposit then you can remove them from setup itself. Follow the below steps to remove:
💠 The very first step is to select Employees and then select Employee Center
💠 Double-click on particular employee whose profile you want to remove or edit
💠 After that, select and click on the tab named Payroll Info
💠 Then click on Direct Deposit button
💠 Select the option to remove the box Use Direct Deposit For: this employee.
Also Read: QuickBooks Not Allowing Me to Submit a Direct Deposit
How to contact us?
Hope, you find this blog as more informative and useful to set up direct deposit for employees QuickBooks. In any case, you face difficulty while setting up then feel free to contact QuickBooks technical support toll-free helpdesk number. The technical team is available 24*7 to assist you and provide you the best appropriate solutions for queries. You can contact the team via dropping an email at this email address [email protected] or you can do a QuickBooks live chat with dedicated experts.