Quick Search Results

    Not finding your answer?

    View More Results

    Set up, edit, and remove direct deposit for employees

    Article ID: 1000244


    This article explains how to set up, edit, and remove Direct Deposit service for your employees.

    Reminder: You need to send your payroll data 2 banking days before the checkdate, before 5pm PST, to make sure your money gets to your employees on time. Intuit withdraws money from your account 1 banking day before the check date, and then sends it to your employees accounts on the check date.


    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 Desktop.

    To set up an employee for direct deposit:

    In QuickBooks Desktop, choose Employees > Employee Center to open your employee list.

    Double-click the employee's name.

    Click the 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.

    The next paycheck you create for the employee will be marked for direct deposit. If you want direct deposit on a paycheck you have already created but not sent, you must delete the paycheck and recreate it.  If the wrong direct deposit bank account is on a paycheck created, but not sent, you can also locate and open the paycheck in the register, remove the checkmark next to Use Direct Deposit, add the checkmark back next to Use Direct Deposit, confirm the correct direct deposit information has been added and save the paycheck.  Intuit cannot add Direct Deposit service to a paycheck that has already been sent.

    Additional Information

    • You must ALWAYS input direct deposit bank account 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 Desktop.
    • 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 information 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:
      1. Open the paycheck and go to the Paycheck Detail window.
      2. Uncheck the Use Direct Deposit option on the paycheck detail and click Save > Save & Close.
      3. 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 Desktop only accepts checking or savings accounts, so they should select checking.

    Click here to read more about foreign bank accounts

    To prevent unnecessary delays or rejections for electronic payments, we ask you to certify that your payment does not ultimately originate from and is not ultimately being sent to a foreign bank account.

    Why are we asking for this?
    New bank reporting requirements necessitate additional information for electronic payments that are made to or from foreign bank accounts. Since these requirements are relatively new, most senders and recipients of electronic payments, including most state agencies, do not yet support the collection of this information and do not, therefore, accept electronic payments that originate from or are sent to foreign bank accounts.

    What does "originate from" and "sent to" mean?
    Payments are considered to originate from a foreign bank account if your bank is not a U.S.-based bank or if funds in your U.S.-based bank account come from electronic transfers from a foreign source.

    Payments are considered to be sent to a foreign bank account if the recipient's bank is not a U.S.-based bank or if the recipient has an existing agreement with a U.S.-based bank to automatically transfer funds from the recipient's account to a foreign bank.

    What should I do if my transaction is from or to a foreign bank account?
    For payments to or refunds from a state agency, contact the agency to see what alternatives are available. Click here and choose the state to find contact information.

    For payments to employees or contractors, consider another payment option such as writing a check or using a reloadable debit card, or contact us to discuss options for your payroll service.

    What if I am not sure if my transaction is from or to a foreign bank account?
    Your financial institution will be able to provide the most accurate information on whether or not a transaction is affected by these new restrictions on transfers from or to foreign bank accounts.
    You can temporarily disable direct deposit for one paycheck only, or remove direct deposit permanently from the employee's profile.

    Disable direct deposit temporarily (on a paycheck only):

    Locate and open the paycheck.

    Click Paycheck Detail.

    Clear the Use Direct Deposit checkbox.

    Click OK.

    Remove the phrase Direct Deposit from the Memo field on the face of the Paycheck and click Save & Close.

    A message will appear advising this action is not recommended because it will affect bank reconciliation. Direct Deposit paychecks are automatically marked as reconciled for your convenience.  Click below for additional steps so you can manually reconcile this paycheck with your other bank transactions.

    1. Click Banking > Use Register.
    2. If your bank account doesn't open, choose your bank account and click OK.
    3. Locate the paycheck you just unmarked for Direct Deposit.
    4. Remove the checkmark from the Reconciled column (it is indicated with a checkmark).
    5. Click Record to save your changes.

    The next paycheck created for the employee will be marked for direct deposit.

    If you would like direct deposit on a paycheck already created not sent, you must delete the paycheck and recreate it.  We are not able to add direct deposit to a paycheck that has already been sent to the payroll service.

    To remove direct deposit from an Employee Profile:

    Choose Employees > Employee Center.

    Double-click the name of the employee whose profile you want to edit.

    Click the Payroll Info tab.

    Click the Direct Deposit button. Click to clear the box Use direct deposit for this employee.

    Top Answers


    Most Used Forms

    Find and download individual and federal forms required for your business.

    Payroll Tax Support

    Stay in compliance, ensure you're up to date on all necessary tax agency information from Federal to State agency


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