How to Activate and use of Direct Deposit in QuickBooks Desktop?
QuickBooks is indeed the best financial software available in the market. It is widely used by thousands of companies. It helps in managing all track inventory which contains entire information in the form of statements. A user can work simultaneously on several features, such as handling payroll, invoices, bill payments, bank deposits and so on. The company provides time-to-to time constant updates to ensure that a user doesn’t face any uninterrupted services.
Another very feature-packed tool of QuickBooks is Direct Deposit of payroll on the employee accounts. Direct Deposit can be run from payroll and employers can be paid directly from QuickBooks Desktop.
How to activate Direct Deposits in QuickBooks?
Steps to be followed to activate Direct Deposits:
- First, go to ‘EMPLOYEES’ menu, and select ‘MY PAYROLL SERVICES’.
- Then Click on ‘ACTIVATE DIRECT DEPOSIT’.
- Now, on the ‘VERIFY COMPANY INFORMATION’ section, enter the ‘LEGAL COMPANY NAME and ADDRESS’.
- Click on the appropriate INDUSTRY.
- Now, the user needs to enter details like- EMAIL ID, SOCIAL SECURITY NUMBER, and DATE OF BIRTH of the Owner of the company.
- Enter the PAYROLL ADMINISTRATOR INFORMATION, BANK INFORMATION, such as the bank account details registered in the QuickBooks account, and which will be used for paying the employees.
- An agreement will occur, the user needs to click on the box to finish the details. After that, the users will have to enter a SECURITY QUESTION to secure the details registered.
- Click ‘SUBMIT’ once the form is completed.
Now, after activating the Direct Deposits, the user is able to make certain changes like edit, set up and remove Direct Deposit in QuickBooks Desktop for his employees:
How to Set up an employee for direct deposit in QuickBooks Desktop?
- First, select Employees and then choose the Employee Center to open the employee list.
- Now, select the employee’s name.
- Then, click on the Payroll Info tab.
- Choose Direct Deposit button.
- In that window, click on Use Direct Deposit for [employee’s name].
- Now Choose whether the deposit is to be made into one or two accounts.
- Enter the Bank Name, Routing No., Account No., and Account Type of employee’s financial institution.
- If a user wishes to deposit to two accounts, then he needs to enter the amount or percentage that the employee wants to deposit to the first account in the Amount to Deposit field. The remaining amount will be deposited into the second account.
- Choose OK to save the information.
How to Edit the Direct Deposit information of the employees?
The User needs to edit the bank account information of the employee before creating a paycheck for him/her. Paychecks which are created before one update the employee’s account information will be deposited directly to the old bank account. To avoid this, the user can delete and recreate the paychecks before sending them into QuickBooks.
Following the below steps to follow:
- First, open the paycheck and go to the Paycheck Detail window.
- Now, unselect the User Direct Deposit option in the paycheck detail, select Save and Close.
- lastly, open the paycheck again and choose the Use Direct Deposit option. After this, click on Save.
- Now, permanently remove the direct deposit from an employee’s profile.
- For not paying the direct deposit to an employee, the user can remove them from the setup.
- Choose Employees and then go to the Employee Center.
- Select the name of the employee to edit that profile.
- Now, look for the Payroll Info tab.
- In the end, select Direct Deposit button. Then, clear the box Use Direct Deposit for this employee.
Aron Smith is an inventive person who has been doing intensive research in particular topics and writing blogs and articles on QuickBooks Support and many other related topics.
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