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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.
    • Providing that the 2 business days has passed but the check date falls on non-banking day, the funds will be deposited in the Employee's bank account on the next business day.

    Direct Deposit Processing Timeline:

    1. DD is sent to Intuit.
      • The status of the transaction during this stage is still pending.
      • You must transmit payroll information to Intuit before 5:00 pm PST at least 2 banking days before the check date if there's a need to void any of the paychecks or send additional paychecks.
      • At 5:00 pm PST, payroll offloads.
      • Note: Paychecks can be sent up to 45 days in advance.
      • Holiday Reminder!
    2. Payroll is offloaded.
      • Typically, DD payroll is offloaded 2 banking days before the paycheck date at 5:00 PM PST.
      • Intuit cannot stop the Direct Deposit transaction at this point.
      • DD payroll is electronically sent to ACH (Automatic Clearing House) for processing.
      • Intuit will debit your bank account a banking day before paycheck date.
      • Debit can happen anytime within 24 hour window.
      • FAQs for bank returns (NSF)
    3. Funds are posted (Pay Day).
      • Funds are deposited to your employee's account on the paycheck date.
      • Time of DD posting or availability of funds is determined by the employee's bank and is not controlled by Intuit.
      • If the paycheck date falls on a non-banking day, the funds will be posted in the Employee's bank account on the next banking day.
      • Employee's bank has until 11:59 PM of the day of the check date to post the funds to the employee's bank account. 
      • When do direct deposit post?

    Answers to Frequently Asked Questions:

    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.

    Top Answers

    Resources

    Most Used Forms

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    Payroll Tax Support

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    ViewMyPaycheck

    Give employees 24/7 access to payroll information they need.