How to Change Direct Deposit Account in QuickBooks
QuickBooks is a popular accounting software used by many businesses to manage their financial transactions. One important feature of QuickBooks is the ability to set up direct deposit for employees. However, there may be times when you need to change the direct deposit account in QuickBooks. In this article, we will guide you through the process of changing the direct deposit account and answer some common questions related to this topic.
Step 1: Verify your direct deposit eligibility
Before proceeding with changing the direct deposit account, ensure that you are eligible for direct deposit in QuickBooks. Check if you have an active payroll subscription and have completed the necessary setup steps for direct deposit.
Step 2: Update your bank account information
To change the direct deposit account in QuickBooks, you need to update your bank account information. Follow these steps to do so:
1. Open QuickBooks and go to the Employees menu.
2. Click on the My Payroll Service option and select Account/Billing Information.
3. Sign in using your Intuit account credentials (the same credentials used to log in to QuickBooks).
4. Select the Direct Deposit option.
5. Click on the Edit button next to the Bank Account Information section.
6. Enter the new bank account details and click on Save.
7. Review the updated information and click on Submit.
Step 3: Notify your employees
After updating the direct deposit account, it is important to inform your employees about the change. Send a company-wide email or hold a meeting to communicate the new account details and any necessary instructions.
Common Questions and Answers:
1. Will changing the direct deposit account affect my employees’ pay?
No, changing the direct deposit account will not affect your employees’ pay. As long as you update the account information before the payroll is processed, the funds will be deposited into the new account.
2. How long does it take for the new direct deposit account to become active?
The new direct deposit account becomes active immediately after you update the information in QuickBooks. However, it may take a couple of payroll cycles for the change to take effect.
3. Can I change the direct deposit account for only specific employees?
Yes, you can change the direct deposit account for specific employees. Simply update the bank account information individually for each employee in the Employee Center of QuickBooks.
4. What happens if I enter incorrect bank account information?
If you enter incorrect bank account information, the direct deposit may fail, and the funds will not be deposited into the intended account. Ensure that you double-check the account details before saving and submitting the changes.
5. Can I use multiple bank accounts for direct deposit in QuickBooks?
Yes, you can use multiple bank accounts for direct deposit in QuickBooks. However, you need to set up each bank account separately and assign it to the corresponding employees.
6. How often can I change the direct deposit account in QuickBooks?
There is no restriction on the frequency of changing the direct deposit account in QuickBooks. You can update it as often as needed, keeping in mind that it may take a few payroll cycles for the changes to take effect.
7. Can I cancel a direct deposit transaction after changing the account?
No, once a direct deposit transaction is initiated, it cannot be canceled or reversed. Ensure that you have entered the correct account information before processing the payroll.
8. Will my employees be notified of the changes to their direct deposit account?
No, your employees will not be automatically notified of the changes to their direct deposit account. It is your responsibility to inform them about the new account details.
9. Do I need to inform my bank about the direct deposit account change?
No, you do not need to inform your bank about the direct deposit account change made in QuickBooks. QuickBooks handles the direct deposit process and communicates with the banks electronically.
10. What if an employee does not have a bank account for direct deposit?
If an employee does not have a bank account for direct deposit, they can choose to receive a paper check for their wages. You can select the appropriate payment method for each employee in QuickBooks.
11. Can I revert to the previous direct deposit account after changing it?
Yes, you can revert to the previous direct deposit account by following the same steps mentioned earlier and entering the old account details. However, it is important to ensure that the account is active and capable of receiving direct deposits.
In conclusion, changing the direct deposit account in QuickBooks is a straightforward process that requires updating the bank account information and notifying your employees. By following the steps outlined in this article, you can easily make the necessary changes and ensure a smooth transition.