The Complete Guide to Fix QuickBooks Direct Deposit Issues

Last Updated on March 10, 2022

Opting to pay your employees through cash or check has become old. The feature of Direct Deposit in QuickBooks has become popular in QuickBooks Payroll. The employees prefer fast and convenient Direct Deposit over the traditional paperwork. The users, at times, might encounter the QuickBooks Direct Deposit Issues. The issue appears in multiple formats, and it becomes essential to resolve them. In an organization paying the employees on time is a matter of company reputation. We list down ways to fix the QuickBooks direct deposit errors for this factor. Read the article to get your QuickBooks Direct Deposit Issues sorted.

Are you Facing Issues Submitting Direct Deposit in QuickBooks? Call Online Banking Support Number 1.855.738.2784 to Speak to an Expert Now

Follow through these steps before you use Direct Deposit

1. Verify the bank account

The bank account that you provided during your signup gets verified by Intuit®. Two small withdrawals of less than $1.00 each will be made for verification. These amounts are used to confirm that you’re the authorized user. The account after that gets set up correctly for authorized payroll transactions and fees.

2. Set up the bank account information of your employees in QuickBooks

The employees getting paid by Direct Deposit must have their account details saved. Written approval is given by the employees for the Direct Deposit of their paychecks.

3. Create the paychecks for the DD

Choose the payroll check type to create the paychecks in QuickBooks Desktop Payroll. Fill in the information asked on the screen correctly. Later, select the preferred printing options.

Note: The above task must be done before 5:00 PM PT, 2 banking days before the check date to avoid QuickBooks direct deposit errors.

Issue 1: QuickBooks Direct Deposit Taking so Long, here is what you can do!

The first step is to contact the employee’s bank and check the payroll status. But before this, confirm the details given below:

• Go to the Employees menu and select Send Payroll Data.
• In the area of Items Received, look for the payroll data confirmation of your payroll.
• Select the appropriate confirmation of the payroll.
• Click on View to see the confirmation details.

Once the above verification is done, talk to a bank representative. They can let you know why QuickBooks Direct Deposit is taking so long. The representative can help you know the status of when the payroll will be posted in your account.

Issue 2: Error Creating Direct Deposit in QuickBooks for the first time

At certain instances, the users who create their first Direct Deposit payroll receive an error message such as:

"XX's check will not be direct deposited, because the first set of paychecks are still in the process of completion. You will need to issue manual checks for the net amount calculated for this employee."

The user’s inability to approve all the Direct Deposit checks together when running the first DD payroll leads to such an error. The issue can be resolved by following the 3 simple steps listed below:

• Delete all DD paychecks.
• Recreate all DD paychecks.
• Approve all DD paychecks.

Note: This method can help you fix QuickBooks Direct Deposit issues only when you process the payroll using direct deposit the very first time.

Issue 3: Direct Deposit error “Problem creating request file.  We tried to send your payroll information, but the transmission failed.”

The error appears out of the blue, which creates a problem in creating a request file. The transmission of the payroll information thus fails.

Resolve these kinds of QuickBooks Direct Deposit Issues with the following steps:

1. Make sure that you run QuickBooks as an Admin.
2. Switch to the Single-user mode by clicking on File at the top of the menu bar.
3. The Employee Information from the Employee Center must be manually verified. The Employee name must not consist of special characters or double spaces.
4. Send a zero payroll to check the payroll connection by going through the following steps:

• Select Employees, then choose to Send Payroll Data.
• Make sure that there are no paychecks in the Items to Send
• Select Send.
• Enter your Direct Deposit PIN.
• Wait for the message that your payroll session was successful

Issue 4: QuickBooks Direct Deposit did not reach the employee made in QB Desktop Payroll

1. Verify the Employee’s DD information

If the Direct Deposit has been rejected, view and update the employee’s DD bank account info. Here is a list of instructions to do the same:

• Open QuickBooks Desktop and click on the Employees
• Choose the Employee list and double-click on the employee’s name whose information you want to modify.
• Click on the Payroll Info
• Select Direct Deposit. Review the data and if it is essential to update the Routing number and Account number.
• Next, click twice on OK.

2. Manually Enter a Deposit in QB desktop for Rejected Payroll

• Go to the Banking menu and click on Make Deposit.
• Navigate to Deposit to list and choose the bank account to deposit the fund.
• The field of Date must take the date when the rejected funds were returned.
• Choose the QuickBooks Payroll Service in the Received From
• Enter Direct Deposit Liabilities account in the field of From Account.
• In Memo, enter the name of the Employee.
• In the Amount field, enter the amount of the rejected direct deposit.
• Skip Check No, and choose a method of payment and a class if you use Class Tracking.
• Select Save & Close.
• Check the Direct Deposit Liabilities balance to confirm that it is now correct.

Issue 5: QuickBooks Direct Deposit not Going Through; what could be the reason for QuickBooks Direct Deposit Delay?

Has it been quite a time, and QuickBooks Direct Deposit is not Going Through? This problem usually occurs for one of the following reasons:

1. The bank account information of the employee was incorrect.
2. The problem lies with the bank account of the employee.
3. If you submit DD payroll after 5PM PST.

NOTE: In the case of the first two reasons, funds will be rejected and consequently returned to the employer’s account.

You will get rid of the issue for other reasons, and settlement is done within 2-3 business days. Contact the bank when the process takes longer than required. If the problem persists, call 1.855.738.2784 to handle the situation.

Issue 6: How to Recover Funds if Direct Deposit has been made with Incorrect Account Information?

1. Incorrect Accounting/Routing Number:

Have a word with the financial institution to see the status of an incorrect bank account.

• If the account is live- Initiate Reverse a Direct Deposit immediately.
• For a closed account or it does not exist- Confirm with the bank’s customer support if the payroll is rejected.

Note: If the payroll is rejected, the bank sends a rejection notice through Intuit® and, if not, talk to the bank to help recover the funds.

2. The account details belong to another employee:

If the bank account belongs to another employee or you have chosen the wrong employee account for QuickBooks direct deposit, then the following options are available with the employer to recover funds.

• Talk to the owner of the wrong bank account and settle the dispute through an internal agreement.
• If necessary, with the above-stated agreement, initiate Reverse a Direct Deposit.
• For detailed instructions on changing the direct deposit account info in QuickBooks, follow our article on How to Change Direct Deposit Bank Account in QuickBooks.

3. The account is closed where the paycheck was created:

The employee’s account will get all the updates after creating the employee’s paycheck. It is, therefore, necessary to do the following to recover the funds.

• Talk to the bank representative to see if the payroll will submit without issues.
• The payroll, when rejected, you will be notified of the same.
• If not, coordinate with the bank to recover the funds.

IMPORTANT: Also Read – How to Manage Direct Deposit for an Employee in QuickBooks Desktop.

We have detailed you on some generally reported QuickBooks Direct Deposit Issues. QuickBooks Direct Deposit feature has been most beneficial, and thus its solutions are equally important. There might be times when users keep the errors intentionally for the critical nature of the issue. In such a case, contact us at1.855.738.2784 to surpass the QuickBooks Direct Deposit issues. The support team of online banking experts lists down the right authorities to handle your case, and the hassle of dealing alone disappears.

Edward Martin

Edward Martin is a Technical Content Writer for our leading Accounting firm. He has over 10 years of experience in QuickBooks and Xero. He has also worked with Sage, FreshBooks, and many other software platforms. Edward’s passion for clarity, accuracy, and innovation is evident in his writing. He is well versed in how to simplify complex technical concepts and turn them into easy-to-understand content for our readers.