How to Setup, Edit and Remove Direct Deposit in QuickBooks for Employees?

Published by John Smith at April 1, 2019

How to set up direct deposit in QuickBooks?

You should consider the information given below before proceeding with the steps required for QuickBooks direct deposit set up for employees.

Direct deposit bank account information of your employee must be always entered from a check. A deposit slip must never be used as deposit slip’s information is not valid for direct deposit purpose. Account information that you have to enter must be of the U.S., as outside the U.S., different automated clearing house processes are employed, and these external processes do not correlate with QuickBooks Desktop.

In case of payment cards, you should contact the card provider for seeking account number information and routing. If you want to use a money market account of your employee for the purpose of direct deposit through QuickBooks, you have to make sure that the money market account of your employee accepts Automated Clearing House (ACH) transactions. Your company’s employees have to check with their banks whether their money market accounts are savings or checking.

If in case, your employee’s account is a savings account, then he or she has to get the account routing number from his or her bank. If your employee’s bank tags your employee’s account like a money market account, you have to tell your employee that only checking or savings accounts are accepted by QuickBooks Desktop, and so he or she should select checking account.

Steps to set up QuickBooks direct deposit for employees

First of all, go to Employees.
Choose Employee Center.
Employee list will appear.
Double-click on the name of the employee for whom you want to set up QuickBooks direct deposit form.
Go to the tab named Payroll Info.
Click on the Direct Deposit button.
Now, in the window that opens, for the employee for whom you want to set up QuickBooks direct deposit, choose Use Direct Deposit.
After the above step, you have to decide whether paycheck is to be deposited into one or two accounts.
After you have decided, you have to enter the following information of your employee - the name of the employee’s bank, routing number, employee’s account number, and type of account.
If in step 8 above you decided to deposit to two accounts, then in the Amount to Deposit field, you have to type the amount or percentage to be deposited to the first account. The remaining amount will go to the second account.
Now, click on the OK button so that all the data you have entered get saved.
When prompted, type your direct deposit PIN.

Also Read: Steps to Fix QuickBooks Error Code 1603

How to edit QuickBooks direct deposit form information of an employee?

If you want to update the bank information of your employee, you can do so from the same page where you set it up for your employee. When prompted, you have to type your direct deposit PIN.

Ensure that bank account information has been edited before you have created your employee’s paycheck. All those paychecks that you created before the account information of the employee were updated will not get deposited to the newly updated bank account but to the old bank account. If you want this to not happen, you can delete paychecks and then again create them before sending to Intuit. If you do not want to follow this delete and recreate step, you can follow these steps –

Firstly, open the paycheck.
Now, open the Paycheck Detail window.
In the Paycheck Detail window, find Use Direct Deposit.
Delete the checkmark placed against this option.
Select Save.
Click on Save & Close.
Now, again open the paycheck.
Place a checkmark against the option - Use Direct Deposit.
Click Save.

How to remove QuickBooks direct deposit for an employee?

If you do not want QuickBooks direct deposit for an employee, you can follow the steps given below to remove him or her from the QuickBooks direct deposit setup –

First of all, go to Employees.
Choose Employee Center.
Employee list will appear.
Double-click on the name of the employee for whom you want to remove QuickBooks direct deposit.
Go to the tab named Payroll Info.
Click on the Direct Deposit button.
Now, in the window that opens, for the employee for whom you want to remove QuickBooks direct deposit, uncheck the Use Direct Deposit box.

How to disable QuickBooks direct deposit temporarily?

With QuickBooks Desktop Payroll, you can create a one-time regular paycheck, i.e. non-direct deposit paycheck, for your company’s employee, to whom otherwise the payment is made through QuickBooks direct deposit feature. However, all the future payments to this employee will be through direct deposit.

Follow the steps given below to remove the direct deposit option for an employee while you are creating the paychecks –

Click on Open Paycheck Detail in the Review and Create Paychecks window.
Remove the checkmark placed against the Use Direct Deposit option.
Click on the Save & Close button at the bottom of the active screen.

Follow the steps given below to edit already created direct deposit paychecks that have not been sent to Intuit yet–

Go to Employees menu in the QuickBooks Desktop’s top menu bar.
From the submenu, click on Edit/Void Paychecks.
Now, you have to edit the date range to paychecks’ date.
On the paycheck, double-click with your mouse.
Look for the memo line stating direct deposit.
Clear this line.
At the bottom of the screen, go to the Paycheck Detail.
Remove the checkmark against the Use Direct Deposit box in the Review Paycheck screen.
Go to the bottom of the Review Paycheck screen and click on the OK button.
In the Paycheck screen, click on Save and Close.
Now, click two times so that the small checkbox gets cleared.

If you face any problem in setting up, editing and removing QuickBooks direct deposit for employees, you can call us at our QuickBooks Online Support Phone Number 1-888-502-0363 to get expert technical assistance.