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    Direct Deposit requirements, signup, and activation

    Article ID: 1000748

    Overview

    You can run payroll and pay your employees through direct deposit in QuickBooks. To have this service, you to sign up and activate this feature in QuickBooks.

    To sign up for Direct Deposit, you must meet the following requirements:

    • A currently supported version of QuickBooks
    • An active QuickBooks payroll subscription
    • A federal Employer Identification Number (EIN)
    • Internet access
    • A bank account that can handle Automated Clearing House (ACH) transactions

    Details

    Nominal per-transaction and per-payroll transmission fees apply. Terms, conditions, pricing, features, service options, and support subject to change without notice.

    To sign up for direct deposit:

    From Employees menu, select My Payroll Services, and choose Activate Direct Deposit.

    Complete and review the form. When asked for zip code in the legal company information, enter the 5 digits only without the extension.

    Click Submit.

    At the bottom of the page, click the View agreement link and read it.

    Select the I have read and agree to the terms of the service agreement checkbox.

    Click the Sign-up button.

    Print the Direct Deposit Getting Started Guide.

    A Confirmation page appears with your Next Steps instructions, which you can print, along with the Direct Deposit Getting Started Guide. (This links opens a .pdf file)

    The guide contains the following forms and materials that new subscribers must complete before you can begin paying your employees using Direct Deposit:
    • Instructions for completing the bank account verification process
    • Instructions for processing payroll with Direct Deposit paychecks
    • An authorization for Direct Deposit for your employees
    • A list of Federal Reserve holidays to use in calculating lead times for payroll processing
    You may also download the Getting Started Guide from the QuickBooks Help menu.
    1. Go to the Help menu and choose QuickBooks Help.
    2. Click the Search tab and search for Direct Deposit Getting Started Guide.
    3. Select the topic Direct Deposit Getting Started Guide.
    4. Click on Click Here link to download the Direct Deposit Getting Started Guide.

    Click the Return to QuickBooks button at the bottom.

    Complete and follow the Direct Deposit Getting Started Guide.

    Direct Deposit Getting Started Guide. (This opens a pdf file.)

    Reminders

    • You must transmit payroll information to Intuit before 5:00 p.m. Pacific time at least 2 business banking days before the check date.
    • You can send Intuit your payroll information up to 45 days in advance of check date.
    • Direct Deposit requires Internet access. Your QuickBooks software and Direct Deposit provide a protected Internet connection that guards against unauthorized access to your payroll data while it s being transmitted.
    • Direct Deposit can be delivered to an Intuit paycard.

    Direct Deposit Processing Timeline:

    1. DD is sent to Intuit
    (Pending Status)
    2.  Payroll
    Offloaded
    3. Pay Day
    (Completed)
     
    You must transmit payroll information to Intuit before 5:00 p.m. Pacific time at least 2 banking days before the check date.

    At 5:00 p.m. Pacific time, payroll offloads.

    Note: Paychecks can be sent up to 45 days in advance. 
    Intuit cannot stop Direct Deposit once it offloads.

    DD payroll is electronically sent to ACH (Automated Clearing House) for processing. 
     
    Intuit will debit your bank account a banking day before paycheck date.

    Debit can happen anytime within 24 hour window. 
    Funds are deposited to your employee's account on paycheck date.
     
    Time of DD posting or availability of funds is determined by the employee's bank and is not controlled by Intuit.
     
     
     Holiday Reminder!FAQs for bank returns (NSF)  When do direct deposits post?

    Answers to Frequently Asked Questions:

    Why will Intuit take out 2 small amounts from my account after signing up?

    This is for security purposes. This process will confirm that the bank account information of the employer that was entered during signup is correct and accepts ACH transactions. This will also verify that you are an authorized user of the account and that the bank account is ready for authorized payroll transactions and fees.

    PSP will automatically refund the 2 small Direct Deposit test debits within 7 business days from the original debit date. (5 business days for the test debits in PSP to be in Completed status and 2 days to return to the customer s account). This ensures we do not process refunds on returned debits. These transactions do not automatically post to customer's QuickBooks.

    What will happen after the signup process?

    Within 2 business days from when the customer signed up for direct deposit, QuickBooks Payroll will make two very small withdrawals from the employer s bank account. Customers are advised to go online to check their bank statement for these two withdrawals, and verify their bank account.

    If the test debits are successful, PSP will automatically refund these to the customer.

    How do I verify my bank account in QuickBooks?

    If you already know the 2 small amounts, you can enter the 2 amounts in QuickBooks. The instructions are found in the Direct Deposit Getting Started Guide.

    How soon can I start using Direct Deposit?

    Right after verifying your bank account in QuickBooks, the direct deposit service is already available to use. You can refer to the Direct Deposit Getting Started Guide to set up your employees' bank account or paycard information in QuickBooks.

    How do I process or send direct deposit in QuickBooks?

    You just process payroll or create paychecks in QuickBooks in the same way you usually do, then send the direct deposit to Intuit.

    How soon can you deposit the funds to my employees' account?

    It takes 2 business banking days for Intuit to deposit the funds to your employees' bank accounts.
    • You must transmit payroll information to Intuit before 5:00 p.m. Pacific time at least 2 business banking days before the check date.
    • You can send Intuit your payroll information up to 45 days in advance.

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