Let’s Set Up Direct Deposit for Employees in QuickBooks

QuickBooks Data Migration
3 min readJun 19, 2024

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Set Up Direct Deposit for Employees in QuickBooks
Set Up Direct Deposit for Employees in QuickBooks

Are you having difficulties with payroll? If you set up direct deposit for employees in QuickBooks, you can get a convenient solution for paying employees and contractors. This will also help you eliminate the need for handwritten or printed paychecks. It simplifies the collection of necessary employee information for efficient payroll management.

Additionally, employers can securely gather employee banking details and authorization. If employers prefer employees to enter their personal, tax, and banking information themselves, they can enable employee self-setup. QuickBooks will then send an invitation via QuickBooks Workforce automatically. Go through this blog to learn more about the direct deposit feature in QuickBooks.

Advantages Of Setting Up Direct Deposits In QuickBooks

Setting up direct deposits in QuickBooks can be advantageous to QuickBooks employees in the following ways.

  1. Direct deposits enable the electronic transfer of funds directly into bank accounts, which is more time-efficient.
  2. It streamlines payroll and allows same-day deposits to employee and contractor accounts, providing a hassle-free method for receiving money.

Learn How to Set Up Direct Deposits in QuickBooks Desktop

This section has mentioned some steps to set up direct deposits on QuickBooks Desktop. Follow these steps. It is recommended that you follow the provided steps with extreme care, as you might encounter QuickBooks error code 2501 during the process.

Step 1: Connect Your Bank Account

Follow these steps to connect your bank account to set up direct deposits.

  1. Go to Payroll.
  2. From Connect your bank, select Let’s Go.
  3. Select Get Started.
  4. From Business, choose Edit.
  5. Add any missing info, including your federal tax ID number.
  6. Select Next.
  7. Add the Principal Officer’s name, address, date of birth, and Social Security number. Select Next.
  8. Select Add new bank account.
  9. Search for your bank name.
  10. You may need to enter your online banking user ID and password.
  11. Otherwise, select Enter bank info manually and input your routing and account numbers, then choose Save.
  12. Select Accept and Submit.

Step2: Verify Your Bank Account

After checking, verify your bank account to set up direct deposits to your account.

  1. Check your bank statement within two business days for a small deduction from Intuit Payroll.
  2. After spotting the transaction, sign in to QuickBooks as an admin.
  3. Go to the ‘Employees’ tab, select ‘My Payroll Service,’ and choose ‘Activate Direct Deposit.’
  4. Log in to your Intuit account, enter the deducted amount twice, and select ‘Verify.’
  5. Enter your payroll PIN, click ‘Submit,’ and then ‘OK’ to confirm.

Know How Do I Fix QuickBooks Error PS038?

Step 3: Add Direct Deposit To Your Employees

Once this setup is complete, the next paycheck you create is to add direct deposit for your employee. Choose your payroll for further steps.

QuickBooks Online Payroll

  1. Navigate to Payroll, then Employees.
  2. Choose your employee.
  3. In the Payment method, select Start or Edit.
  4. From the Payment method dropdown, select Direct Deposit. If your employee hasn’t signed one, you can also access the direct deposit authorization form here.
  5. Select a Direct deposit method:
  6. Direct deposit to one account
  7. Direct deposit to two account
  8. Enter the routing and account numbers from the employee’s voided check for direct deposit, then select Save.

Quickbooks Desktop Payroll

  1. Select Employees and choose the Employee Center to open your employee list.
  2. Select the employee’s name.
  3. Go to the Payroll Info tab.
  4. Click the Direct Deposit button.
  5. In the Direct Deposit window, select Use Direct Deposit for [employee’s name].
  6. Decide which accounts to open with the paycheck — one or both.
  7. Enter the employee’s bank details (account number, routing number, bank name, and account type).
  8. If you deposit money into two different accounts, enter the amount or
  9. percentage for the first account in the Amount to Deposit area.
  10. The remainder goes to the second account.
  11. Select OK to save the information.
  12. Enter your direct deposit PIN when prompted.

Hopefully, the information provided above helped you set up direct deposit for employees in QuickBooks to ease the process of paying your employees. Additionally, we also discussed the benefits you can get using direct deposit, except for the quick payment process. Now, don’t wait; start utilizing the feature now!

You May also Read:- How to Install and Configure QuickBooks on a Server?

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