Direct deposit is a convenient way to save time on payroll, but how does it work with QuickBooks? QuickBooks supports both employee and vendor direct deposit (this service may cost extra depending on which QuickBooks payroll plan you choose). It’s actually quite simple to set up direct deposit. Simply follow these nine steps to begin paying your employees immediately. Here you will read about how to set deposit slips in QuickBooks online and for more information like how to set up credit card payment in a QuickBooks account and manage to intuit online account then click on these links.
HOW TO USE DIRECT DEPOSIT IN QUICKBOOKS
First, we’ll walk you through the process of setting up direct deposit in QuickBooks. After that, we’ll go over how to pay users via direct deposit.
You can set up direct deposit during payroll or by going to Employee>Payroll Info>Direct Deposit.
ENTER COMPANY INFORMATION
To enable direct deposit in QuickBooks, double-check your company’s information, including the legal name, address, EIN, and industry. If necessary, update any owner information.
ENTER BANK INFORMATION
Next, enter your company’s banking information. Choose the bank account from which you want to pay employees. Select whether the account is a checking or savings account, and then enter the legal name, routing number, and account number for that bank account. Finally, at the bottom of the screen, agree to the terms and conditions.
SET SECURITY LIMITS
QuickBooks will now require you to enter three security checks as an added security measure. Use the drop-down menus to find the best options for your company.
ACTIVATE DIRECT DEPOSIT
QuickBooks will charge you two small fees to verify your bank account. You can officially activate your direct deposit once you see these charges on your banking records.
If you need additional assistance with the following steps, you can download the Direct Deposit Getting Started Guide.
VERIFY DIRECT DEPOSIT
Go to Employee>My Payroll Service>Activate Direct Deposit once you see the two verification charges in your bank records. To finish verifying your bank account, enter the two amounts and click “Next.”
ENTER EMPLOYEES’ DIRECT DEPOSIT INFORMATION
Make sure you’ve added the information of the employees who have authorized direct deposit now that your company is set up for a direct deposit. To do so, navigate to Employee>Employee Center and select the employee for whom you want to set up direct deposit. Once you’ve found that employee’s information, navigate to “Payroll Info” and select “Direct Deposit.”
Enter the following information in the “Use Direct Deposit for this employee” box: bank name, account number, account type, and routing number. You can also choose whether to direct deposit the entire amount or a portion of it. When finished, click “OK,” and then “OK” on the employee screen to ensure the information was saved correctly.
RUN PAYROLL
You are now ready to run payroll via direct deposit! To run payroll, follow the instructions from earlier. When you reach the last screen, click “Send Payroll To Intuit” to pay your employees through direct deposit.
PRINT PAY STUBS
Don’t forget to print pay stubs after you’ve successfully paid your employees via direct deposit. To print pay stubs in QuickBooks, go to File>Print Forms>Pay Stubs.
You can now officially pay your employees via direct deposit and give them their pay stubs as proof. If you have any questions about QuickBooks direct deposit, look in QuickBooks for the Direct Deposit Getting Started Guide or contact QuickBooks payroll support directly.
Don’t miss the rest of our QuickBooks Desktop Pro 101 Series to learn how to run payroll in QuickBooks, write and print payroll checks, run payroll reports, and more.
Why This is Important
If the Income on your Profit and Loss Statement appears to be excessive, it is a sign that your deposit workflow is incorrect. This is one of the most frequently encountered “PEBCAKs” (Problem Exists Between Chair and Keyboard).
Because it is not obvious how to make Deposits in QuickBooks Online, many business owners and inexperienced bookkeepers focus on the Banking Feed rather than customer transactions, compounding the error. Here’s how to do it correctly!
Payments are accumulated in the Undeposited Funds account after the business has received them but before the money is deposited in the bank. Undeposited Funds is similar to the blue deposit envelope I used to bring to the bank. It is the location where QBO stores company sales until someone physically deposits the stack of cash and checks, and until Merchant Services batches credit card transactions into the bank account.
It’s critical to empty this account by depositing cash and checks and grouping credit cards. Except for pending transactions at the bank, this account should be empty ($0).
When you or your employee goes to the bank, make a note of which checks have been deposited so you have a record. Better yet, deposit checks using the bank’s smartphone app so that each one is processed individually. Then the deposits of the company will always match.
Read Also: What is Wholesale Billing