Paying your contractors and employees via direct deposit is a practical alternative to writing checks by hand or printing them.
Your company needs a US bank account that is configured for bank transfer (ACH) transactions in order to set up and use direct deposit.
To find out more, check your payroll subscription; there might be fees associated with using direct deposit.
Requirements for Setting Up Direct Deposit
To establish direct deposit for your company, you will require the following:
- Social security number, birthdate, and home address of the principal officer, company name, address, and EIN
- Your company’s bank account number and routing information, or the online bank credentials
- The bank account information for the contractors or employees
Practical Steps for Setting Up QuickBooks Payroll Direct Deposit
Below are the procedures that will guide you to set up the payroll direct deposit on your application.
Just take a look once:
Step 1: Get connected with your bank account
For QBO payroll:
- Click the link to finish the product’s step > hit this link to open a window
- Choose Get started
- Click Edit under the company segment
- Add any missing information, including your federal tax ID number > and click Next
- Include the principal officer’s name and social security number. Date of birth and residence > Next
- Click on Add new bank account
- Look up your bank’s name. Your online banking user ID and password can be requested
For QuickBooks Desktop Payroll:
- Launch the application > enter your admin credentials to log in
- After choosing My Payroll Service under the Employees > choose Activate direct deposit
- Click Get started if the get started screen is not visible:
- Choose as the admin, I’m the admin, and I’m the primary person who can… input the user ID or email address of the admin
- Hit the Continue
- Enter the email or user ID and password for your Intuit account, then choose Sign in. Hit the Create an account: link if you don't already have an Intuit account. This screen won’t appear if you are already logged into your QB Intuit account
- Click Get Started
- Choose Start from the business tab > after entering the information> click the Next
- Enter the principal officer's details > Next
- Pick “Add new bank account”
- Enter the name of your bank, your account number, and your online login information
- Make a PIN to use every time you submit your paycheck
- Double-check your PIN > click Submit
- Click Accept> then finally hit submit
- When asked to enter the entire Social Security number of the principal officer and click submit
Step 2: Make direct deposit arrangements for workers and contractors
After setting up, to verify your business bank account, you can enter the bank account information for your contractors and workers.
- Go to set up direct deposit for employees to learn how to pay staff
- Go to set up and manage direct deposit for your contractors to learn how to pay them
Step 3: Check your bank account, if required
- If you face any challenges in connecting to your bank account immediately, Intuit will send a test debit of less than $1.00 to your account. This will move you to two business days. As you get to see the test debit, you should enter the exact amount in the QB to authorize your account for the transactions of payroll
Note:- QuickBooks Error 19062 00238 disrupts smooth payroll processing, causing update failures and workflow interruptions, demanding quick expert attention for accurate resolution.
Conclusion
In this blog, we have tried to discuss all the required information related to how to set up QB payroll direct deposit on your desktop. However, if you get stuck at some points and feel challenged, you can dial +1(855)-510-6487, consult our QB specialist, and they will resolve all your queries.
Frequently Asked Questions About Setting Up QuickBooks Payroll Direct Deposit
What is QuickBooks Payroll Direct Deposit
- QuickBooks Payroll Direct Deposit is a feature that allows businesses to send employee pay directly to their bank accounts without printing checks, offering a secure, fast, and convenient way to process payroll.
Why is Direct Deposit setup important in QuickBooks Payroll
- Setting up direct deposit ensures timely payments, reduces manual errors, saves administrative time, and supports a professional payroll system that enhances accuracy and convenience for both employer and employees.
How do I start the setup for QuickBooks Payroll Direct Deposit
- To start the setup, a user needs an active payroll subscription, business details, bank verification, and employee banking information, allowing QuickBooks to validate the account before enabling transfers.
What information is required to complete the Direct Deposit setup
- You need your company’s legal name, principal officer details, bank account verification data, routing information, and employee account details to complete the full setup accurately and securely.
How long does QuickBooks take to verify a Direct Deposit account
- Verification timing depends on bank response and QuickBooks authentication. Usually, users must confirm small test deposits before the direct deposit feature becomes active for payroll.
Can employees update their bank information for Direct Deposit
- Employees can update their account details at any time, and employers can edit the information within QuickBooks Payroll to ensure funds are deposited into the correct account on paydays.
Why is my Direct Deposit setup pending in QuickBooks Payroll
- A pending status happens when bank verification is still processing, company information needs review, or QuickBooks requires additional confirmation before enabling funds transfer.
What should I do if Direct Deposit is not activating after setup
- If direct deposit doesn’t activate, the user should double-check verification details, confirm micro-deposits, re-enter banking information, and ensure the payroll subscription is active without interruptions.
How secure is QuickBooks Payroll Direct Deposit
- The system uses encrypted communication, protected banking channels, and identity verification steps to keep sensitive data safe and ensure payroll funds are transferred securely every time.
Why are payroll deposits delayed even after successful setup
- Deposits may be delayed due to bank processing time, holidays, cutoff schedules, or incorrect employee bank information. Reviewing the payroll timeline within QuickBooks helps avoid delays.
Can I run payroll immediately after setting up Direct Deposit
- You can run payroll once your account is fully verified and the direct deposit feature is activated. Until then, QuickBooks may restrict sending payments while validation is ongoing.
What happens if employee bank details are entered incorrectly during setup
- If incorrect information is entered, the deposit may fail or return. Updating the correct account details promptly ensures accurate payment routing on the next payroll run.
You should also know:- QuickBooks Error 2147221164 appears during payroll or update tasks, affecting system communication and functionality, requiring precise troubleshooting to restore stable performance.