Tired of creating paychecks for your employees manually? Assuming you use the Quickbooks accounting software, you can have their checks directly deposited into their bank accounts. Quickbooks supports the use of direct deposits, facilitating the otherwise tedious and time-consuming task of paying your employees.
Note: if you wish to use this feature, you’ll need to sign up and active direct deposits in Quickbooks. Requirements for direct deposit include the following:
- A supported version of Quickbooks
- Active Quickbooks payroll subscription
- Federal Employer Identification Number (EIN)
- Internet access
- Bank account that supports Automated Clearing House (ACH) transactions (there are no ‘wire’ fees associated with ACH transactions for most banks)
To set up direct deposits, log into your Quickbooks account and choose Employees > My Payroll Services > Active Direct Deposit. From here, you’ll need to review and complete the form regarding your direct deposits. Proceed to enter the appropriate information, including the 5-digit zip code for your respective region. When you are finished, click the Submit button.
There are a few more steps left before direct deposit can be activated. After clicking the Submit button, you’ll need to read and agree to the terms and conditions at the bottom of the page. Tick the box labeled “I have read and agree to the terms of the service agreement,” at which point you can click the Sign-up button.
Last bit not least, print the “Direct Deposit Getting Started Guide” and then click the “Return to Quickbooks” button. After reading the following the guide, you should be ready to create direct deposits. Keep in mind that all payroll information must be submitted to Intuit prior to 5:00 PM PST at least two days before the check day. Intuit allows business owners, however, to submit their payroll information up to 45 days in advance. Direct Deposit also requires an Internet access to function. If you do not have an active Internet connection, or if your connection has a tendency to go in and out, you may want to skip this feature and look for an alternative payment method.
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