Have you lately installed QuickBooks and are not much well-versed with all the attributes of the software? One of the most common processes that many users do not know how to reverse is the cancellation a direct deposit paycheck already sent in QuickBooks. Through this article, we will talk through in detail what all the end users have to do to revoke or stop a direct deposit paycheck.

Well, if you want to end the proceedings of a Direct Deposit paycheck that you sent to accounting software, be mindful of the following aspects:

The minute the Direct Deposit has deposited for ACH proceedings, the bookkeeping software cannot stop the Direct Deposit.
Deposit time for ACH proceedings of your Direct Deposit transpires at precisely 5:00 p.m. Pacific time, 2 working days prior to the paycheck date.

If you need quick resolution to stop a direct deposit paycheck and someone who can do this with precision – you can connect with usingpos.com QuickBooks experts over the call.

Also Read: QuickBooks Not Allowing Me to Submit a Direct Deposit

Table of Contents

To Verify the Status of the Payroll

Select ‘Employees’ option from the top menu bar and after that goes to My Payroll Service. Next, click on the Account/Billing Information option.
Log in using your QuickBooks Account.
Press on View Payroll Activity which you will find in the direct deposit section.
Now, you have to enter your Direct Deposit PIN.
Lastly, try to search the payroll broadcast with the check that has to be stopped.

To Revoke the Paycheck

Important note: Make sure you carry out this action before 5:00 p.m. Pacific time, and 2 banking days before the paycheck date.

Your accounting software application validation report will not display whether you were able to prolifically revoke the Direct Deposit. Though in the matters to send screen, rather than saying REVISED paychecks, it will now say ANNULLED paychecks and the aggregate number of the cancelled checks.

Steps for Cancel or Stop a Direct Deposit Paycheck

Try to find the ‘Employees’ option and then go to ‘Edit’ or Void Paychecks option which you can get on the top menu bar
When you see the Edit/Void Paychecks on your computer screen, modify both the Show paychecks right from dates to the present date of the check, and click on Tab button.
Select the check in the request, and then press on Cancel or Void option.
In the pop-up window, you need to click on ‘Yes’ option and after that select the Void option
Once you reach a decision, click on checkbox referring that you agree to the terms and conditions of paycheck cancellation.
You need to replicate the preceding steps as essential to take into account all checks that have to be cancelled.
As soon as the check(s) have been cancelled, just exit the Edit/Void Paychecks window.
Yet again click on ‘Employees’ option on the top menu bar and select Send Payroll Data.
Select the ‘Send ‘option. Now, you will notice there is no direct deposit check available that needs to be sent. The main reason to carry out this step is to let QuickBooks Desktop link with the server to let it be informed about the fact that a modification has been done in the check and it will be soon erased from direct deposit.
Lastly, make sure that the paycheck has been cancelled by verifying the bank register that you use to pay your employees. Even the memorandum will display the revision has been carried out in the check(s). The memorandum will state: “cancelled/annulled paycheck Payroll Service Assets Retrieved.” On the payroll dues check, the memorandum will state “Adjusted for annulled/cancelled paychecks.” No validation report will be sent for cancelled paychecks.

If the annulled Direct Deposit doesn’t appear in the Direct Payroll Data Window

Important note: The given below steps only work provided you have not made any changes in the paycheck other than annulling it.

You need to look for the annulled paycheck in the request.
Obliterate the info that is there in the Memo tab.
Now, you need to click on ‘Save’ tab and close the window.
Click again on the paycheck to open it.
After this, right click and select Annulled Paycheck.
Press on the Save option and close the opened window
The cancelled paycheck will now appear in the Direct Payroll Data window.

Activate Direct Deposit in QuickBooks Desktop Payroll

Sign up and Activation of Direct Deposit

💠 One of the primary requirement is that you require a supported version of the software
💠 QuickBooks desktop subscription needs to be active
You need to have an EIN or federal Employer identification number
💠 An ACH (automated clearing house) transaction account
💠 Call in our QuickBooks customer support team to find out the details regarding the Direct Deposit feature, if you possess the above-mentioned requirements. Alternatively, try the below-mentioned.

Activate the Direct Deposit Feature on QuickBooks Desktop Accounts

💠 Go to the ‘EMPLOYEES’ menu, and click on ‘MY PAYROLL SERVICES’
💠 Click on ‘ACTIVATE DIRECT DEPOSIT’
💠 Enter the Direct deposit feature and other legal information. Enter only the first five digits of the code, without the extensions.
💠 Now, on the ‘VERIFY COMPANY INFORMATION’ section, enter the ‘LEGAL COMPANY NAME and ADDRESS
💠 Click on the appropriate INDUSTRY
💠 After that, enter details such as EMAIL ID, SOCIAL SECURITY NUMBER, and DATE OF BIRTH of the Owner of the company.
💠 Enter the PAYROLL ADMINISTRATOR INFORMATION, BANK INFORMATION, such as the bank account details enrolled in the QuickBooks account, and which you are going to use for paying the employees.
💠 An agreement will be displayed; you need to click on the box to finish the details. The users will be asked to enter a SECURITY QUESTION to secure the details registered.
💠 Click ‘SUBMIT’ once you have completed the form. Once you have submitted, a CONFIRMATION will be sent, which can be printed and stored for future references.

💠 If you encounter a problem or the form does not get submitted, delete the information and re-enter once again manually. If the problem persists, call in the QuickBooks technical support team for help and resolution on the issue.

💠 Once submitted, the QuickBooks will allow you to directly deposit the pay on the employee’s accounts. Before proceeding to deposit the amount, check the entered details to ensure they are correct.

💠 In order to authenticate the Direct Deposit feature on your QuickBooks account, the QuickBooks team will withdraw two small amounts from the bank account registered. Confirm these transactions on the QuickBooks account to activate Direct deposit feature.

The Direct Deposit feature gets activated as soon as the activation process is complete and verification is done by checking the two small transactions done on the account. You can start depositing the PAYROLL directly now to the employee accounts.

Change your Direct Deposit Bank Account QuickBooks Desktop Payroll

‘Changing direct deposit bank account in QuickBooks Desktop’ is very much essential in every day running, and knowing the details would help in using the software judiciously.

If you are looking to change the bank account so that the payroll funds can be made as ‘Direct deposit’ from it, then it can be done through the below-mentioned guidelines:

Before beginning, ensure that you have the QuickBooks account credentials and the ‘Direct Deposit’ PIN that is used to send the payroll.

Steps of Change your Direct Deposit Bank Account QuickBooks Desktop Payroll

Update the New Bank Account in QuickBooks Payroll

If the new bank account for which the changes are being made is not added to the QuickBooks, it is essential to do so, before changing it as direct deposit.

Open QuickBooks, and select ‘LISTS’ and ‘CHART OF ACCOUNTS’
From the list, click ‘ACCOUNTS’ and ‘NEW’
You can pick the BANK account you want, and click ‘CONTINUE’
Now, click on ‘SAVE and CLOSE’ to make the changes.

Now, you need to update this information on the QUICKBOOKS ACCOUNTS MAINTENANCE page.

On the QuickBooks desktop, open ‘EMPLOYEES’ tab, and ‘MY PAYROLL SERVICES
From the list, select ‘ ACCOUNTS/BILLING INFORMATION
Now, sign in with the credentials, to log in.
From the ‘DIRECT DEPOSIT’ tab, click on ‘BANK ACCOUNT’ and ‘OK’
You need to enter the PAYROLL PIN when prompted, and then, ‘SUBMIT’ the details.
Now, a window will open up, asking for the Bank name, account type, number, and so on. Enter all the details (of the new account to be added) and click ‘SUBMIT’ after rechecking the information once again.
It will take a few minutes to confirm the addition. Wait for the message of confirmation to appear, and then click ‘CONTINUE’.

QuickBooks will be sending two test debits on the new bank account added. This will take about two banking days for the test debits to post on the bank statement. Once this is done, you need to do the following before changing the direct deposit account.

From the ‘EMPLOYEES’ menu bar, click on ‘SEND PAYROLL DATA’
From the ‘SEND/RECEIVE data window, click ‘PREFERENCES’
Now, on the ‘ACCOUNT PREFERENCE’ window, click on the ‘NEW BANK ACCOUNT’ from the menu displayed
Click ‘OK’ to save changes done, and ‘CLOSE’ the send/receive data window.

Activating the Direct Deposit Bank Account

Now, once you have completed the step – 1, wait for a couple of banking days, before checking the statement for the two small debits made by QuickBooks Payroll services.
Now, key in the two test debits in the ‘QUICKBOOKS ACCOUNT MAINTENANCE‘ page by – going to ‘EMPLOYEES’ and clicking on ‘MY PAYROLL SERVICE’ and ‘ACCOUNT/BILLING INFORMATION
When asked, sign in to the QuickBooks account, and click the ‘VERIFY LINK’ appearing new to the ‘DIRECT DEPOSIT BANK ACCOUNT INFORMATION’
Now, enter the two test debits and the payroll PIN, and click ‘SUBMIT’. This will change the direct deposit bank account in the desktop payroll.

This approval allows the Employee to guarantee a direct deposit from the Employee. The suitable Employee must enter this legitimate direct deposit form and afterward give over to the relevant payroll department to store the records. Alongside this form, as referenced above, it is required to connect a voided check. It allows direct receiving of funds, which get instantly add into the checking accounts or saving accounts. We know that it is a more time-consuming process waiting for a check to clear. It saves additional time as it takes to deposit an actual check in the bank.

Steps for QuickBooks Payroll Direct Deposit Form Write and Setup

The initial step is to download the Intuit/QuickBooks Payroll Direct Deposit form in a PDF format.
After this, collect the information that forms request the Employee to enter the information identified with the principal account into which he is required to deposit the assets. Here are the following sections:
- Account number
- Bank routing number
- Account type including checking or Savings
- The sum required to get deposited (percentage or Dollar are acceptable)

Go toward the form’s procedure segment, which goes about is optional or appropriate just if your sums are partitioned into two accounts.
In scenario if there is any circumstance, at that point you need to fill similar fields as you did in the previous step. Leave the fields blank in the event that you intend to deposit a paycheck into a single sole account.
After this, give a voided check to the appropriate file.
Finally, verify the last section cautiously to guarantee that you are affirming that it is you that are approving this information.
Enter your organization name in the field situated at the top; compose your complete Name, Employee ID, and the date when you complete the form.
You need to take the print copy of the form, sign in, and give it to the Employee or other supervisor for additional action and processing.

Consider the Below-Mentioned Information Before you Setup Direct Deposit for Employees QuickBooks

You must also enter bank account details directly from a check, not from a deposit slip, as the details on a deposit slip are not valid for direct deposit.
Account information needs to be inside the U.S. Automated clearing house (ACH) systems outside the United States are distinct and do not align with the QuickBooks Desktop.
Tell the routing card provider and account number information for the pay cards.
Money market accounts of workers may be used for direct deposit as long as they accept ACH transactions. Ask the employee to verify with their bank whether they can tag the money market account as savings or checking.
The employee would have to collect the deposit routing number from the bank or other financial company for savings accounts.
When the employee’s bank says the account should be marked as a money market, let the employee know that QuickBooks Desktop only supports checking or savings accounts, and they can pick checks.

Steps to Setup Direct Deposit for Employees QuickBooks

💠 Initially, Select employees and then select the Employee Center in order to open the employee list
💠 Next, double-click on desired employee’s name
💠 Select and open Payroll Info tab
💠 Then click on Direct Deposit button
💠 After that, select the option named “Use Direct Deposit for” within the same window
💠 Then choose to deposit a paycheck as per your convenience either select one or two accounts
💠 Once you are done then fill the employee’s financial institution related all the relevant information
💠 In case, you choose two accounts for paycheck then enter the amount or percentage
💠 Then click on the Ok button to save the employee’s information
💠 At last, enter the direct deposit PIN if asked.

Edit Employees Direct Deposit Information

You can also update the information related to the employee’s bank account on the same page where you set it up.
💠 The very first, open the paycheck and then go the window named Paycheck Detail
💠 Untick the Use Direct Deposit option on the paycheck detail
💠 Then hit the Save & close button
💠 At last, open paycheck once again and click on the Use Direct Deposit option, 💠 make sure you have saved.

You can also Delete Direct Deposit from an Employee’s Profile Permanently

In case, if you don’t want to pay an employee any more for direct deposit then you can remove them from setup itself. Follow the below steps to remove:

💠 The very first step is to select Employees and then select Employee Center
💠 Double-click on particular employee whose profile you want to remove or edit
💠 After that, select and click on the tab named Payroll Info
💠 Then click on Direct Deposit button
💠 Select the option to remove the box Use Direct Deposit For: this employee.

Are you still not able to cancel a Direct Deposit paycheck? Get in touch with our Accounting Problem QuickBooks tech support team and get instant assistance. Dial toll-free and get the requisite job accomplished by our QuickBooks experts at our toll-free number.

How to Direct Deposit Paycheck in QuickBooks

December 14, 2021, BooksPOS, Uncategorized