How Does Direct Deposit Work?

If you use the payroll service provided by QuickBooks, for an additional fee you can sign up for direct deposit service. You are charged $3 per payroll plus $.99 per paycheck to use the direct deposit service. You can get more information by calling Intuit at 800-750-0477.

With direct deposit, your employees have the opportunity to have their paychecks deposited directly into their bank accounts. Alternatively, employees can request that the paycheck amount be divided between two accounts.

Employees who want to use direct deposit need to sign a form providing you with the name, account number, and routing number of each bank or financial institution they want to use and a description of the type of account they have (checking or savings, for example). Employees can designate a specific amount or a percent of their paycheck that will be deposited in the first account. If less than 100% is to be deposited in the first account, the balance of the check is deposited in the second account specified.

When you as an employer sign up for direct deposit with QuickBooks, you receive a packet in the mail that includes a PIN for use in setting up the service as well as a sample employee form you can use to collect information from your employees.

Set up direct deposit information for each employee by selecting Employee List from the Lists menu, double-clicking an employee, and clicking the Payroll and Compensation Info tab for that employee. Click the Direct Deposit button and enter the required information.