Answering all your accounting needs with being one of the most efficient and hassle-free business management, QuickBooks adds more to the benefits of paying your employees via the feature Direct Deposit.
If you wish to enable Direct Deposit on QuickBooks, ensure that it is vital to process the respective payments for the employees.
What is QuickBooks Direct Deposit?
QuickBooks Direct Deposit feature helps you with the clearance of payments for your employees without the troubles of either printing or writing checks.
This article would help you to understand via a step by process to set up the direct deposit feature on QuickBooks.
How to get started with the Activation of QuickBooks Direct Deposit?
Whether you wish to edit, deposit or set up direct deposits on QuickBooks, the first step is to make sure that the feature is activated for your respective organization on QuickBook Desktop Payroll.
Step 1: Open the Employee List
Choose Employees and select Employee Center which will open the employee list.
Step 2: Click on Employee’s Name
Do a double tap on the respective employee’s name for whom you are setting up direct deposit.
Step 3: Choose the Payroll Info Tab
In the next step, you need to choose the Payroll Info tab.
Step 4: Setting up Direct Deposit
Select the Direct Deposit. Under the Direct Deposit button, select Use Direct Deposit for the respective employee’s name for whom you are setting up direct deposit.
Step 5: Depositing the Paycheck into one or more account
Here you would get an optional choice of either depositing the paycheck into one or more than one account.
Step 6: Input the Details of the Employee’s Financial Institution
Input the details of the employee’s financial institution which must include data like Bank Name, Account No., Routing No., and what type of account it is.
At this stage, if you like to deposit to more than one account, in that case, you must enter the percentage or amount which the employee wishes to deposit to the former account in the Amount to Deposit field.
The rest amount would be deposited in the second account. Then click OK
For reference, strike the checkmark which can be found beside Use Direct Deposit on QuickBooks and confirm the same with the correct direct deposit information that was added and save it.
Editing an Employee’s Direct Deposit Details
At times, you would be needing to edit information such as bank account details of the employee before even starting to create a paycheck for the respective person.
If the paychecks are created prior to one updates the employee’s account details, the payment will be automatically deposited in the old bank account details.
Follow the steps below to avoid this scenario:
Step 1: Open Paycheck and scroll to the Paycheck Detail window.
Step 2: Unmark the Use Direct Deposit option listed on the paycheck detail and choose Save.
Step 3: To confirm, hit Save & Close.
Step 4: Tap on the paycheck again and select e Use Direct Deposit option.
Step 5: Click Save to confirm.
How to Remove Direct Deposit Permanently?
If you wish to not use direct deposit for any particular employee, the following steps are needed to be followed:
Step 1: Choose Employees and select Employee Center which will open the employee list.
Step 2: Do a double tap on the respective employee’s name whose profile you wish to edit.
Step 3: Hit the Payroll Info tab.
Step 4: Select the Direct Deposit button and tap on the clear box Use Direct Deposit for the respective employee.
Now that you have a fair idea on how to enable direct deposits on QuickBooks, make the most for your business’s streamline processes and reduce all account-related hassles.
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What should my Employees do to Receive Direct Deposits on QuickBooks?
If your employee wishes to have direct deposits via QuickBooks, here’s what they need to do:
Fill out a Direct Deposit Authorization form.
Have a voided check from their respective bank account tow which they would be expecting the payment.
Note: These data is to only have for records and might not be required for submission on QuickBooks Desktop.
Can I make a one-time Regular Direct Deposit on QuickBooks?
Yes, on QuickBooks you can do a one-time regular direct deposit and needs not to be on a non-direct deposit paycheck, you would be needing to change a direct deposit paycheck to a regular paycheck.
Are any Charges levied for using Direct Deposits on QuickBooks?
Yes. QuickBooks levies a nominal fee for the usage of direct deposits for your employees.
Does Direct Deposits on QuickBooks have any limitations?
In a motive to curb fraudulent activities, your account would be having a restricted limit on the total of money which you wish to send out with direct deposits.
If you wish to plan to release a larger amount of money which is not regular than usual, you need to request an increase.
Are there any other Payment Options via Direct Deposits on QuickBooks?
No. Direct deposits on QuickBooks can be only used to pay for either your employees or contractors. If you wish to do other payments, you have to use different payment methods.