Set up, edit, and remove direct deposit for employees
This article explains how to set up, edit, and remove Direct Deposit service for your employees.
You have enabled Direct Deposit service for your company.
You will set up, edit, or remove Direct Deposit service for your employees.
Employees who want direct deposit must fill out a Direct Deposit Authorization form and provide you with a voided check from their bank account (not a deposit slip). The authorization form and voided check are for your records only; you do not need to submit them to QuickBooks.
To set up an employee for direct deposit:
Open your employee list.
- QuickBooks Pro and Premier: Choose Employees > Employee Center.
- Simple Start: Click Payroll at the top to enter the Payroll Center. Click the Employees drop-down arrow, and select View/Edit Employees.
Double-click the employee's name.
Click the Change tabs drop-down arrow and select Payroll and Compensation Info. In QuickBooks 2013: click Payroll Info tab.
Click the Direct Deposit button.
In the Direct Deposit window, select Use Direct Deposit for [employee's name].
Choose number of accounts: Use 1 Account or Use 2 Accounts.
Enter the employee's financial institution information (Bank Name, Routing No., Account No., and Account Type).
If you chose to deposit to two accounts, enter the amount or percentage that the employee wants to deposit to the first account in the Optional Amount field. The remainder goes to the second account.
Click OK to save the information.
- You must ALWAYS input direct deposit information from a check, not a deposit slip, since the information on a deposit slip is not valid for direct deposit.
- Account information must be within the United States. Automated Clearing House (ACH) processes are different outside the United States and do not correlate with QuickBooks.
- For pay cards, contact the card provider for routing and account number information.
- You can update the employee's bank account information on the same page where you set it up. You must do this before creating a paycheck for the employee. Paychecks created before you updated the employee's account informtion will be deposited to the old bank account. To avoid this, you can delete and recreate the paychecks before sending them to Intuit, or you can:
- Open the paycheck and go to the Paycheck Detail window.
- Uncheck the Use Direct Deposit option on the paycheck detail and click Save > Save & Close.
- Open the paycheck again and select the Use Direct Deposit option. Be sure to Save.
- Employees' money market accounts can be used for direct deposit as long as they accept ACH transactions. Ask the employee to verify with their bank whether the money market account should be tagged as savings or checking.
- For savings accounts, the employee will need to get the account routing number from the bank or other savings institution.
- If the employee's bank says that the account should be tagged as money market," inform the employee that QuickBooks only accepts checking or savings accounts, so they should select checking.
Disable direct deposit temporarily (on a paycheck only):
Locate and open the paycheck.
Click Paycheck Detail.
Clear the Use Direct Deposit checkbox.
To remove direct deposit from an Employee Profile:
Choose Employees > Employee Center.
Click the name of the employee whose profile you want to edit.
Click the Edit Employee button on the right.
Click the Change Tab drop-down arrow and select Payroll & Compensation Info. In QuickBooks 2013: click Payroll Info tab.
Click the Direct Deposit button. Click to clear the box Use direct deposit for this employee.