Users can now use QuickBooks Desktop Payroll and pay the company employees through direct deposits or DDs. To do this signing up and activating this feature on the desktop appropriately is necessary.
Requirements to sign up for Direct Deposit:
- Using only supported version of QuickBooks Desktop Payroll
- Having an active QuickBooks Desktop payroll subscription
- Having a valid Employer Identification Number (EIN)
- Proper internet access
If above conditions hold valid, one can sign up for Direct Deposit.
Following steps are to be followed in order to complete the signing up process:
- Employees > My Payroll Services > Activate Direct Deposit
- Review and complete the form. On asking for zip code in the legal company information section, enter only the 5 digits without any extensions.
In the ‘Verify Your Company Information’ section:
- Edit and input the industry in the ‘Legal Company Name and Address’ section.
- Select the industry that most closely reflects your company’s vision.
- Enter the owner’s email address, the nine-digit social security number, Date of Birth.
- Edit ‘Payroll Administrator Information’ and confirm the email.
In the ‘Enter Your Bank Information’ section, enter the bank account information that Intuit QuickBooks Payroll debits for direct deposit fees and transactions. This should be the information of the bank account you use to pay your employees.
- Select and read ‘View Agreement’.
- Check the ‘I have read and agree to the terms of service agreement’ checkbox.
- In the ‘check security limits’ tab answer the required questions appropriately.
- Click on the ‘Submit’ button.
- A printable confirmation page appears. Select ‘Return to QuickBooks’ option at the bottom.
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Although, there are certain points that need to be kept in mind before beginning to pay employees through DDs. They are as follows:
- Always enter direct deposit bank account information from a check and not from a deposit slip as the information on the deposit slip is not applicable in case of direct deposits.
- For card pays, contact the card providers for routing and account number information.
- Employee’s money market account can be deemed valid for direct deposits as long as they accept ACH transactions.
- For those with savings accounts, the employees will need to extract the account routing number from the bank itself in order to carry our direct deposits.
- Employees must be informed and instructed to select ‘Checking account’ in case the bank says that the employees’ account should be tagged as money market accounts.
- For security purposes when you provide your initial bank information during the sign-up process, Intuit will make two small withdrawals of less than $1.00 each from the bank account you have appointed for direct deposits. Check your bank account and confirm them in QuickBooks Desktop Payroll. You will then be verified as an authorized account user.
- Collect proper bank account information and written approval from the employees who want to be paid through direct deposits.
- Users must transmit payroll information to Intuit 5 pm Pacific time, at least two business banking days prior to the check date.
Now, users may set up the employees for direct deposits through the following steps:
- Employees > Employee Centre
- Double click on the Employee’s name
- Payroll info > direct deposit
- Select ‘Use Direct Deposit [for employees name]’ in the Direct deposit tab
- Select if you want to deposit the paycheck amount into one or two accounts
- Enter the employee’s financial information
- If the paycheck amount is to be divided into two accounts, enter the percentage of the paycheck that the employee wants to deposit in the first account in the ‘Amount to Deposit’ section and the remainder automatically goes to the other account
- Select ‘Ok’ and save the information
- Enter your PIN when prompted
Now, the next paycheck that is created for the employee will automatically be marked as a Direct Deposit paycheck. Users can also edit information as well as remove employees from the direct deposit facility as per the requirement. However in case of any queries – users are always encouraged to contact at QuickBooks Desktop payroll support number 1-888-412-7852 (toll-free).