Businesses strive for growth and progress by maintaining integrity and productivity. Being able to answer all accounting needs and assert accuracy in financial transactions is essential for the growth of businesses. QuickBooks Desktop is an incredible accounting tool that allows you to monitor and manage all your financial data. This will enable businesses to thrive and highly contribute to the productivity and progress of these businesses.
QuickBooks Desktop offers advanced and robust features that aid businesses in most financial transactions. The direct deposit feature adds more benefits to your business. Activating direct deposit in QuickBooks desktop enables firms to pay their contractors and employee payroll. Users can activate direct deposit on QuickBooks desktop and pay their employees effortlessly.
What is Direct Deposit in QuickBooks Desktop?
Direct deposit in QuickBooks desktop is a feature that enables you to electronically make payments to your employees and contractors’ bank accounts. This makes the payroll processes and financial transactions smooth and effortless. It also offers other benefits, such as saving and reducing the time and cost of printing and distributing paper checks. It allows you to efficiently manage your financial transactions and organize records of payments and expenses in your business.
Direct deposit eliminates the risk of lost or stolen checks and maintains security. It also improves sustainability by reducing the use of paper and contributes to the conservation of the environment. By activating direct deposit in QuickBooks desktop, you can streamline your business’s financial transactions, ensure accuracy, and make timely payments.
What to Consider Before Activating Direct Deposit
- Check your QuickBooks version to ensure it is supported for direct deposit.
- Internet Access – Direct Deposit requires internet access. QuickBooks Desktop and Direct Deposit service issues a secure Internet connection to ensure your payroll data is safe while it is being transferred.
- Verify your Bank Account – Once you verify your account, you become an authorized account user. The bank can then perform authorized payroll transactions.
- Set up employees’ account details in your QuickBooks payroll account – Get bank account details from employees who want to be paid through direct deposit. Your employees must also provide written approvals that you can use direct deposit for their paychecks.
- Direct Deposit processing timeline – It allows you to transfer payroll information before 5:00 p.m. PST to Inuit at least two business working days before the check date. You can also send your payroll information to Intuit up to 45 days before the check date.
How to Set Up and Activate Direct Deposit in QuickBooks Desktop
You can simplify payroll processing by setting up and activating direct deposit on your QuickBooks Desktop. It enables you to make electronic payments to employees and contractors. You can easily and effortlessly set up and activate direct deposit on QuickBooks desktop using the following steps;
Gather your bank, business, and principal officer information
You need to collect some information regarding your business to set up direct deposit. The information required includes;
- The business name, address, and EIN.
- Principal Officer’s home address, date of birth, and social security number.
- Online back credentials and account number.
Link your Bank Account with QuickBooks
After collecting the required details, you are required to connect your bank account with QuickBooks. You can easily do so using the following procedure;
- Open QuickBooks and sign in as an admin
- Navigate to ‘Employees’ and click.
- Then select ‘My Payroll Service’ and tap on ‘Activate Direct Deposit.’
- Click on ‘Get started.’
- If the get started button is not available in your QuickBooks, then follow the steps below;
- Select the ‘I’m the admin, and I’m the primary person who can…’ option and key in your admin user ID and email address.
- Then select ‘Continue’
- Now click on ‘Get started.’
- Select ‘Start’ on your business tab and enter your information.
- Then click on ‘Next.’
- Enter the Principal Officer’s details and select ‘Next.’
- Click ‘Add new bank account’ and enter your online bank credentials and name.
- Next, create your PIN and confirm it twice. You will be prompted to enter this pin every time you send your payroll to QuickBooks.
- Click on ‘Submit’ and then ‘Next’
- Then select ‘Accept and Submit.’
- Confirm the Principal Officer’s total social security number and finish by clicking on ‘Submit.’
Verify your Bank Account
After connecting your bank account to QuickBooks, you need to verify your bank account. You can do this using the following steps;
- Check your bank account regularly in 2 business days for a debit amount of less than $1. The Inuit QuickBooks Payroll debited this for verifying your bank account.
- Next, sign in to QuickBooks as an admin.
- Then, choose ‘Employees’ and click on ‘My Payroll Service.’
- Tap on ‘Activate Direct Deposit’
- Now log in to your Inuit account, enter the debit amount twice, and tap on ‘Verify.’
- Finish up by entering your payroll PIN and selecting ‘Submit,’ then click ‘OK.’
Setting up Direct Deposit for your Employee
You can now set up direct deposit for your employee in QuickBooks using the following steps;
- Select ‘Employees’ and click on the ‘Employee Center,’ and the employee list will open.
- Double-click on the employee’s name and select the ‘Payroll Info’ tab
- Choose the ‘Direct Deposit’ button and click on ‘Use Direct Deposit for (employee’s name)
- Select whether the paycheck gets deposited in one or two accounts
- Key in the employee’s bank details
- Select ‘OK’ to save the information.
- Enter your direct deposit PIN if you are prompted to do so.
How to Update Employee’s Direct Deposit details
You must update the employee’s bank information before creating a paycheck to avoid depositing directly into their old bank account. You can delete and reform paychecks before sending them to Inuit using the steps below;
- Open the paycheck tab and navigate to ‘Paycheck Detail.’
- Then, unselect the ‘Use Direct Deposit’ tab, select ‘Save’, and click ‘Save & Close.’
- Open the paycheck once more and select the ‘Use Direct Deposit’ option
- Finally, click on ‘Save.’
Conclusion
Activating direct deposits in your QuickBooks Desktop streamlines processes in your business. This reduces all hassles related to accounts in firms. With its secure payment system, QuickBooks Desktop’s direct deposit feature provides peace of mind and secures sensitive financial information. It also ensures transactions are done with the utmost confidentiality and privacy.
