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QuickBooks Direct Deposit Not Working! Here’re the Solutions

QuickBooks Direct Deposit Not Working

Cheques and cash are now the outdated, old-school ways to pay your employees. Putting them on the backburner is the Direct Deposit in QuickBooks. The Direct Deposit feature in QuickBooks Payroll is preferred by numerous users. Thanks to the ease with which payments can be made. Additionally, you can quickly pay your employees hence saving time. However, in some situations, payments may not go through, such as in the error of QuickBooks Direct Deposit Not Working. Such scenario leaves you baffled while leaving your employees to question the company. Hence it becomes all the more important to fix QuickBooks Direct Deposit Not Working error.

We have introduced multiple solutions to tackle the error, but we understand that this article can be time-consuming, and you might be lagging on the time at hand. Hence, a quick way out to protect your company’s reputation is reaching out to the certified Payroll experts on 1.855.738.2784 and getting a faster, reliable solution to direct deposit errors

How to Rightly Setup QuickBooks Payroll Direct Deposit to avoid QB Direct Deposit not Working Error?

Before moving ahead with the solutions to QuickBooks Direct Deposit Not Working error, our technicians suggest you set up QuickBooks Payroll Direct Deposit correctly and verify the bank account.

In addition, entering the bank account details of the employees and generating the paychecks for the direct deposits must be done. All these steps are critical, and you can reverse the error if it roots in the improper setup of Payroll Direct Deposit.

Read Also – Fix QuickBooks Direct Deposit Issues

Step 1: Check the Bank Account

During the step of verifying your bank details, Intuit charges less than $1.00 (in two small withdrawals). The objective of these withdrawals is to confirm that it is you who is the authorized user.

Successful completion of this step means you can avoid any error because of the unverified bank account.

Step 2: Fill in Employee Bank Account Details in QuickBooks

Another essential stage in setting up QuickBooks Payroll Direct deposit is to add employees’ bank accounts who will be paid through the Direct Deposit. The Direct Deposit of the paycheck should be written by the employee as approval.

Step 3: Generate Paycheck for the Direct Deposit

To create a paycheck in your QuickBooks Desktop Payroll, you need to follow the instructions given below.

  • Click on the payroll check type.
  • Fill in the details as asked on the screen of your PC.
  • Another thing to be noted is to select printing options as per your preferences.

Important Note: The above steps to set up QB Payroll Direct Deposit must be completed before 5:00 PM PT and two business days prior to the date of the check.

This is essential to avoid any kind of errors such as QuickBooks Direct Deposit Not Working.

Also Read – Manage Direct Deposit for an Employee in QuickBooks Desktop

Solutions to Employee when Error QuickBooks Direct Deposit Not Working Occurs

Have you completed setting up QuickBooks Payroll Direct Deposit with the instructions above? If so, you can follow the solutions below to solve QB Direct Deposit not going through error.

Solution 1: Check if you Comply with Recent Regulations

As per the latest Compliance regulations, QuickBooks must collect specific details for direct deposit setup. The list is given below, and you must check if the correct details are shared with QB.

  1. Business name, address, and EIN.
  2. Principal officer’s social security number, date of birth, and home address.
  3. Online bank credentials or bank routing plus account numbers.

Primarily ensure that the Principal Officer’s information isn’t incorrect.

Solution 2: Reconnect your Bank Account

Another traditional solution to the QuickBooks Direct Deposit Not Working error is reconnecting your bank account to QB. Here’s how you can cover this solution.

  1. Move to the Employees section.
  2. Click on My Payroll Service and choose Activate Direct Deposit.
  3. Pick Get Started option.
  4. Click Start on the Business tab and fill in the info, then Next.
  5. Fill in the principal officer info, then Next.
  6. Click on the Add new bank account option.
  7. Enter your bank’s name and then fill in your online bank credentials or, if asked, your bank routing and account numbers.
  8. Next, you will need to generate a PIN. This pin comes to use when sending payroll to QB and is to be entered each time. Hence, enter a PIN that you can remember or note it down.
  9. Confirm the PIN twice, then click on Submit.
  10. Choose Next and then click on Accept and Submit.
  11. If prompted, verify the principal officer’s social security number before hitting on Submit.

Solution 3: Update QuickBooks Desktop

  1. Move to the Help option and click on Update QuickBooks.
  2. Now Update QuickBooks window will open where you need to go to the Update Now tab.
  3. Click on the checkbox next to Reset Updates and hit the Get Updates button.
  4. Finally, with OK, confirm the reset.

Once the above steps have been followed, restart QuickBooks. At last, on the Update Service message, click on Install Now button. With this, the update will get installed successfully.

Solution 4: Activate Direct Deposit Payroll in QB

As a follow-up to the above solution for QuickBooks Direct Deposit Not Working error, you must activate direct deposit payroll in QuickBooks. Do not worry. You can follow the steps easily with the instructions given below:

  1. First, use the following keys to open the Tech Help window, F2 (or Ctrl 1) and F3 (or Ctrl 2).
  2. Go to the Open File tab on the window that opens up.
  3. Next, double-click the qbw.ini file to access it.
  4. Discover the part of the qbw.ini file that displays: [QBLICENSE] PAYROLL_BUNDLE_STATE=Y.
  5. Alter the Y to N, then pick File.
  6. With the Save button, qbw.ini will be saved with the changes
  7. Return to QuickBooks and try re-accessing the WF Invites or PTC.

Once you reach the Payroll Activation screen, move back to the above steps, and do not alter Y to N in Step 5, but delete the section [QBLICENSE] PAYROLL_BUNDLE_STATE=Y].

Recommended To Read – Change Direct Deposit Bank Account in QuickBooks

We tried covering not only solutions to QuickBooks Direct Deposit Not Working issue through the article but also discussed the precautionary steps when setting up Direct Deposit in QB Payroll. We hope the article could justify its purpose, but nevertheless, software errors can have unknown underlying reasons. In such a case, no amount of manual solutions can bring you relief. That is when the payroll team should serve you. They are reachable on the toll-free number 1.855.738.2784 and with the technical knowledge, they can provide relief to Direct deposit errors such as QuickBooks Direct Deposit Not Working instantly.

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Edward Martin

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.

Article Name
QuickBooks Direct Deposit Not Working! Here’re the Solutions
If your QuickBooks Direct Deposit Not Working, this indicates several different issues with your QuickBooks program, direct deposit service, bank connectivity, and compliance regulations. Resolving it requires updating QuickBooks, reconnecting bank account, and verifying direct deposit subscription and compliances.
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Accounting Helpline
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