Steps for Activating Direct Deposit for
Payroll in QuickBooks
QuickBooks offers a direct deposit feature for paying your employees. This feature enables you to transfer
funds directly to their bank accounts, typically within 2-3 days or even immediately in some cases. If you're
currently utilizing QuickBooks payroll service, you can switch to another bank account to establish
QuickBooks direct deposit. Activating direct deposit for payroll in QuickBooks is straightforward and
can be easily accomplished by even those new to the software.
You can also opt for the automatic payroll option for your regular employees. This ensures that all regular
employees receive their payments at regular intervals. To assist you with setting up and utilizing
QuickBooks direct deposit, we have covered the entire procedure in full in this post.
Following this guide will help you in activating your payroll direct deposit. However, you can also consider
getting experts’ assistance as a quick alternative. So, don’t wait; dial 1.855.856.0042 now!
Some Key Points to Remember About Direct Deposit
• The risk analysis process after the initial setup can take up to 3 days.
• Always ensure that all account numbers and information are accurate. Incorrect details may cause delays or failure to send
funds to an employee.
• It's advisable to start direct deposit setup the day after running a payroll with paper checks to avoid being in a Pending state
for the next payroll run.
• Direct deposit setup and verification may sometimes take up to a week.
• The Principal Officer refers to the owner of the bank account being set up for direct deposit.
Here are Steps to Activating Direct Deposit for Payroll
•If the direct deposit goes wrong, you might encounter QuickBooks error 50004 on your screen. So, it is recommended to follow the
below steps with extreme care.
Step 1: Configure direct deposit
•Select the Settings icon, then choose Payroll settings.
•Select Bank Accounts.
•Fill in the necessary fields for your Business, Principal Officer, and Bank account.
•Select Save.
Step 2: Confirm a direct deposit test transaction
After the initial setup, it is essential to verify the direct deposit test transactions. Two small debits, each less than $1.00 (CAD), will be
charged to your account as a test within 2-3 business days.
To verify these amounts:
• Select the Settings icon, then choose Payroll settings.
• Select the edit icon next to Bank accounts, then choose Verify your account. This option becomes accessible within
24 to 48 hours of entering the bank account details.
• Enter the two test transaction amounts in the provided boxes (each less than $1.00). Enter only the cents, without a
dollar sign (e.g., 47 for $0.47).
• Select Verify.
Step 3: Set up direct deposit for each employee
Once your direct deposit test transaction has been verified, you can proceed to set up each employee:
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Verify that the worker has filled out the authorization form for direct deposit.
Navigate to Payroll and select Employees (Take me there).
Choose the employee you want to set up for direct deposit.
Select Direct Deposit from the dropdown menu after editing the payment method.
Fill in the fields using the information from the employee's authorization form.
Select Save.
• We trust that the blog has provided valuable information and addressed any concerns you may have had
regarding activating direct deposit for payroll in QuickBooks. If you have any further questions about QuickBooks
direct deposit, our professional team can offer precise solutions and guidance. Just dial a toll-free
number 1.855.856.0042.