Quickbooks Payroll Activation is easy, only for those people who know about the requirements for direct deposit. Using the direct deposit feature in QuickBooks Payroll helps users save plenty of time as most of the process is simply automated. If you own a store and have hired employees for the required work, QuickBooks allows you to easily manage your employees’ payroll.
All you have to do is activate the direct deposit payroll feature in your QuickBooks accounting software tool and you’re good to go. You can activate your own payroll feature in order to pay your employees via direct deposit (DD) in QuickBooks Payroll. Also, your employees don’t have to cash papers or cheques/checks to get their wages.
The direct deposit feature in QuickBooks has become widely popular among small business owners as it easily lets you pay wages to your employees, rather than paying in cash or cheque/check. Moreover, these days, most employees expect their paychecks via direct deposit because this payment method is both convenient and safe.
Learn How To Sign Up And Activate Direct Deposit Feature In QuickBooks Payroll
In order to use direct deposit in QuickBooks, there are certain requirements that you need to fulfill. Activating the direct deposit feature in QuickBooks Payroll is cost-free.
What are the Requirements to Sign Up for Direct Deposit in QuickBooks Payroll
Given below are the basic requirements that you need in order to sign up for direct deposit in QuickBooks.
- The latest or supported version of QuickBooks Desktop
- Active QuickBooks Desktop subscription
- Federal Employer Identification Number (EIN)
- Access to high-speed Internet connection (LAN or Wi-Fi)
- Must have a bank account that can manage all the transactions related to Automated Clearing House (ACH) within the United States
Note: Nominal per transaction and per payroll transmission charges may apply. Also, the terms and conditions, price, feature services options and support may change without any prior notice.
Steps for Signing Up and Activating Direct Deposit Feature In QuickBooks
Here are the steps to help you sign up and activate a direct deposit feature in QuickBooks.
- Open QuickBooks and login to your account.
- From the main menu, click Employees, select My Payroll Service, then click Activate Direct Deposit.
- Review the form when finished.
- When asked for a postal code in the legal company details, type the five digits only (without the extension).
Verify Your Company Information
- Enter the Legal Company Name and Address to add the industry.
- Select the most suitable industry to consider your company’s main business.
- Add the owner’s credentials such as email address, nine-digit SSN, and DOB.
Note: Credentials are mandatory to fill as per the rules and regulations issued by the National Automated Clearing House Association (NACHA).
- Next, verify the Payroll Administration details and email address.
Enter Your Bank Information
- Type the bank account details that Intuit QuickBooks Payroll debits for direct deposit (DD) transactions and charges.
Note: This is a bank account that you can use to pay your employees.
- Click the View Agreement link to review the terms.
- Accept the terms of the service agreement by marking the checkbox.
Check Security Limits
- For each question, select appropriate answers from the drop-down list.
- Click the Submit button.
Note: If you do not select appropriate answers for the questions, clicking the Submit will fail to take you to the next steps.
- After successfully completing the submission process, you will see a page displaying a confirmation message along with further instructions. You can print this page if you want to.
- Click the Return to QuickBooks button at the bottom of the page.
Things You Must Complete Before You Start Paying Employees Using Direct Deposit In QuickBooks
There are, however, additional things that need to be completed in order to start using the direct deposit feature in QuickBooks.
Verify your bank account
For security reasons, at the time of sign up, when you provide your primary banking details, Intuit performs two small withdrawals of less than $1.00 each from the bank account you set up for direct deposit (DD). Check with your bank for the sums and verify it in QuickBooks. After successfully verifying, you become an authorized user of the account and the bank account is ready for authorized payroll transactions and fees. Thus, once your bank account is confirmed, Intuit automatically refunds two small test debits within 7 working days from the original debit date.
Setup account details of your employees in QuickBooks Payroll account
Collect bank account details from your employees who wish to be paid via direct deposit. However, the employee must submit written approval to you, indicating acceptance of direct deposit of their pay-cheques/checks.
After completing this, you can create pay-cheques/checks for your employees by using direct deposit (DD).
Important points to remember:
(a) You can transfer payroll information to Intuit before 5:00 PM (Pacific time) at least two business days before the cheque/check date.
(b) You can send your payroll information to Intuit up to 45 days in advance of the cheque/check date.
(c) Direct Deposit (DD) requires Internet access. Your QuickBooks Desktop application and DD service issue a secure Internet connection that protects against unauthorized access to your payroll data while it’s being transferred.
(d) DD can be delivered to an Intuit pay card.
(e) In case if two business days have passed, but the cheque/check date falls on a non-working day or a Federal Reserve holiday, then the funds will be deposited in the employee’s bank account on the next working day.
Direct Deposit (DD) processing timeline
- Direct deposit is forwarded to Intuit before 5:00 PM (PST) and it takes two banking days before the cheque/check date.
- The status of the transaction during this stage is still pending.
- You may void any previously sent pay-cheques/checks or send additional pay-cheques/checks if needed.
- Payroll offloads at 5:00 PM (PST).
Note: Pay-cheques/checks can be forwarded 45 days in advance.
- Holiday reminder.
- The payroll is offloaded.
- Typically, Direct Deposit payroll is offloaded two business days before the pay-cheque/check date by 5:00 PM (PST).
- Intuit cannot stop the DD transactions at any point without having a fault.
- QuickBooks Direct Deposit Payroll is electronically sent to ACH for processing.
- Intuit will charge your bank account on a working day before the pay-cheque/check date, which can occur within 24 hours.
- Funds are posted.
- Funds are deposited to your employee’s account on the pay-cheque/check date.
- The information about DD posting time or availability of funds is checked by the employee’s bank and is not controlled by Intuit.
- If the pay-cheque/check date falls on a non-business day, the funds are posted to the employee’s bank account on the next business day.
- The employee’s bank has until 11:59 PM (PST) on the day of the cheque/check date to post the funds to the employee’s bank account.
Benefits of Signing Up and Activating Direct Deposit Feature in QuickBooks Payroll
There are several benefits of signing up and activating the Direct Deposit (DD) feature in QuickBooks.
- Signing up is totally free
- There are no monthly fees
- You pay only when you use the service
- You can schedule QuickBooks Direct Deposit payments up to 45 business days in advance
- Your employees can be paid on schedule
- No need for a minimum number of employees or pay-cheque/check
If you need help or have questions about activating the direct deposit feature in QuickBooks, how to turn on the payroll in QuickBooks desktop we are here to assist you. Read out the complete blog and take appropriate step according to your need.