As a business owner, one of the key things that help a business to prosper is compensating your particular employees precisely and at the right time. QuickBooks is a widely acknowledged accounting software that makes payroll processing smooth and hassle-free and makes it convenient to deposit a particular payment into the respective bank account of an employee directly.
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But, sometimes problems can occur with QuickBooks Direct Deposit, making you wonder what did go wrong.
In today’s article, We will talk about the solutions to QuickBooks Direct Deposit Failed issues and empower you to get back on track.
Let us first understand why your direct deposit is not functioning in QuickBooks.
Why my Direct Deposit is Not Working in QuickBooks?
There are certain common reasons why QuickBooks Direct Deposit failed or does not work, some of which are listed below:
- Payroll Processing Date: QuickBooks payroll must be processed by a given deadline, or else there will be no timely deposits. In case the deadline is gone and you have missed the date, the direct deposit of your employee may fail to go through.
- Account Confirmation: Your particular business account must be authenticated by QuickBooks prior to using the direct deposit feature. In case it is not authenticated, the direct deposit transactions may fail to go through.
- Partial or Wrong Bank Detail: Make sure that the bank information of your employee that includes the routing number and account number is perfect and complete. Wrong information can give rise to failed transactions.
- Inadequate Funds: Ensure that your particular business account has adequate funds that can cover the payroll. In case the available funds are not adequate, the direct deposit will definitely fail.
In case QuickBooks Direct still fails to work after all the issues mentioned above are addressed, you may consider doing the following:
- Software Update: Ensure the software update is on point and complete. If the software is outdated, it may give rise to functionality and compatibility problems.
- Service Activation: Confirm that the QuickBooks Payroll is activated. In case the services are not activated, QuickBooks Direct Deposit may fail to work.
- Contact Support: if you have used everything and direct deposit fails to work, get in touch with Intuit QuickBooks support for any kind of help.
What are the Things to be Done Prior to Fixing issues concerning Direct Deposit?
Prior to fixing the error, QuickBooks Direct Deposit did not go through or failed, it is recommended to consider certain things like authenticating the bank account. Apart from that, you must Add the Bank Account information of the employees and then issue the paychecks for the particular direct deposit.
Step 1: Review the Bank Account
When signing up for the account, Intuit authenticates the bank account that is offered by you. For the verification, less than USD 1 is charged. The main objective of charging such amounts is to authenticate that you are a certified user.
In order to evade any type of conflict, It is crucial to verify your bank account.
Step 2: Add the Bank Account information of Your Employees in QuickBooks
It is crucial to include the employee details and bank account to whom you wish to pay via Direct Deposit. The Direct Deposit of the paycheck must be written by the particular employee as a type of sanction.
Step 3: Prepare a Paycheck for the Purpose of Direct Deposit
To issue a paycheck in your particular QuickBooks Desktop Payroll, you need to choose the type of payroll check. Once that is done, you can add the needed information that appeared on the window. Not to mention, you need to ensure that you select the printing options according to your preferences.
How to Fix the QuickBooks Direct Deposit Failed Error?
Here is the list of the solutions to fix the QuickBooks Direct Deposit Failed error:
Solution 1: Make sure there is Compliance with the Latest Regulations. To Follow the Recent Regulations, QuickBooks needs certain Detail from the Particular Direct Deposit Setup.
Below-mentioned is the list of the details you require to review and offer to QuickBooks:
- Address, Business Name, EIN
- Bank Account and Routing Numbers or Online Bank Credentials
- Principal officer’s Date of Birth, Home Address, and Social Security Number
Ensure that the information of the Principal Officers is right in order to avoid any type of issues.
Solution 2: In case you are Witnessing the QuickBooks Direct Deposit not Working issues, then You should Reconnect the Particular Bank Account to QuickBooks. In Order to do, Follow the Steps Performed below:
Step 1: Navigate to the Employees section.
Step 2: Press on My Payroll Service and Choose Activate Direct Deposit.
Step 3: Select the option for Get Started.
Step 4: Press on the option Start on the particular Business tab and enter the needed details. Now press Next.
Step 5: Enter the information of the principal officer and Press Next.
Step 6: Press on the option, Add New Bank Account. Now Add the Bank’s Name.
Step 7: Enter Your Credentials for your online Bank or Account Number and Bank Routing if prompted.
Step 8: Make a PIN that can be used every time a payroll is sent to QuickBooks. Ensure to select a PIN that is easy for you to remember or note down.
Step 9: Verify the PIN two times and then Press Submit.
Step 10: Press on Next and then choose Accept and Submit.
Step 11: Authenticate the Social Security Number of the principal officers if notified prior to pressing on Submit.
Solution 3: Update QuickBooks Desktop to Repair resolve the Error QuickBooks Direct Deposit Not Working Error.
Here are the steps to update QuickBooks Desktop:
Step 1: Navigate to the Help option. Now press on Update QuickBooks.
Step 2: Now the updated QuickBooks Window will appear. Navigate to the tab, Update Now.
Step 3: Press on the checkbox close to Reset Updates. Now press on the button Get Updates.
Step 4: Verify the reset by pressing the OK.
Step 5: Now start QuickBooks again.
Step 6: Press on the button for Install Now on the Update Service notification in order to install the particular update.
Solution 4: Activate the Direct Deposit Payroll in QuickBooks
Step 1: Access the F2 and F3 keys in order to open the window for Tech Help.
Step 2: Navigate to the Open File tab on the screen.
Step 3: Press the qbw.ini file two times to use it.
Step 4: Locate the part of the qbw.ini file that shows – [QBLICENSE] PAYROLL_BUNDLE_STATE=Y.
Step 5: Alter the Y to N and press on File.
Step 6: Save the qbw.ini file with the edits by pressing Save.
Step 7: Go back to QuickBooks and then use the PTC again or WF Invites.
Step 8: if notified, Erase the section [QBLICENSE] PAYROLL_BUNDLE_STATE=Y in place of editing Y to N in step 4.
QuickBooks Direct Deposit is the best and easiest way to compensate your employees. However, problems can arise when wrong bank account details, external factors, or inadequate funds cannot be fixed by any means.
If any such issue is encountered, then QuickBooks Direct Deposit Error arises. Then it is recommended to authenticate the bank details of the employee.
If you still have any queries or if the article does not answer your queries related to QuickBooks Direct Deposit failure, then get in touch with our Dancing Numbers team of experts.
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Frequently Asked Questions
When does QuickBooks Direct Deposit Hit?
The timing for direct deposit differs based on the bank and the kind of account. Usually, the direct deposits are done early in the morning. However, the precise time can differ. It is important to talk to your bank and check what the policy is and notify the employees when they will get the payment.
Why My Direct Deposit is Still Pending in QuickBooks?
When a direct deposit is pending in QuickBooks, it can be because of processing an error in the bank account details of the employee or it can be an error in QuickBooks. It is crucial to confirm the bank account information of the employee and get in touch with QuickBooks support to check if there are any known problems.
How Long QuickBooks takes for Direct Deposit?
The time for processing of Direct Deposit depends on a number of factors like the bank or the account. Usually, the deposit takes around 2-3 days in order to process. In some cases, it can take longer due to complicated bank policies.
How Long a QuickBooks Direct Deposit takes in a day?
Same-day direct deposit in QuickBooks takes up to 5 hours, for the process to get completed.
What to do if You Enter the Account Information of a Different Employee?
During the addition of Bank Account Detail, often it happens that you Enter the Details of another Employee’s Bank Account or you Choose the Wrong Employee Account.
In such a Scenario, do the Following:
- Get in Touch with the Employee Whom you have sent the Payment by Mistake to fix the Problem.
- If needed, You can begin the Reverse Direct Deposit.
- You can Edit the Direct Deposit Bank Account in QuickBooks.
Why is QuickBooks not Sending Direct Deposits?
This could happen if your employee’s bank account information is inaccurate or if something is wrong with their account. If a direct deposit is rejected, the funds will be returned to the business bank account within two to three banking days following the payday. In the meanwhile, you can pay your employee using a paper check.
Why Won’t My Direct Deposit go Through?
Here are a few common reasons why an employee might not have gotten the expected direct deposit:
- The live check was issued, and the account is still undergoing pre-note verification.
- A live check was sent despite the account information not being updated as Net Pay or Remaining Net.
- The account has been closed or frozen.
How Long does QuickBooks Direct Deposit Take?
- QuickBooks direct deposit will take 2 business days
- Basic, Standard, or Enhanced QuickBooks Desktop Payroll
- This means that your employees are paid two banking days after you send us their payroll.
Why is Direct Deposit still Pending on QuickBooks?
If a direct deposit hasn’t been processed yet, the employee’s bank account information may have been entered incorrectly, or there may be a problem with QuickBooks. Verify the employee’s bank account information, and get in touch with QuickBooks support to check if there are any known issues.
