Step 1: Verify eligibility: Ensure that your QuickBooks subscription includes the Direct Deposit feature. If not, you may need to upgrade your subscription.
Step 2: Gather employee information: Collect the necessary information from your employees for setting up direct deposit. This includes their bank account number, routing number, and consent to use direct deposit.
Step 3: Set up your company's bank account for direct deposit: In QuickBooks, navigate to the Payroll Center or Payroll Settings and select the option to set up Direct Deposit. Follow the prompts to enter your company's bank account information, including the account number and routing number.
Step 4: Enter employee bank information: In QuickBooks, go to the Employee Center or the employee's profile. Enter the bank account information for each employee who wants to receive direct deposit payments. This includes their account number, routing number, and any other required details.
Step 5: Verify employee bank information: QuickBooks may require you to verify the employee's bank account information. This is typically done by conducting test transactions. Follow the instructions provided by QuickBooks to complete the verification process.
Step 6: Set up direct deposit for payroll: In QuickBooks, navigate to the Payroll Center or Payroll Settings and select the option to set up Direct Deposit for payroll. Choose the appropriate settings and preferences for direct deposit, such as the pay period and payment method.
Step 7: Run payroll with direct deposit: Once the employee bank information is verified, you can process payroll with direct deposit. In the Payroll Center or during the payroll process, select the employees who will receive direct deposit payments. Enter the pay amounts and complete the payroll process as usual.
Step 8: Communicate with employees: Inform your employees about the successful setup of direct deposit and provide them with any additional details they may need, such as the expected payment dates or pay stub access instructions.