Paying employees through checks or cash has become an outdated method. Thus, Direct Deposit is one of the smartest ways every company prefers in QuickBooks Payroll. By using QuickBooks Direct Deposits, you can send fast payments to your employees while saving time. However, employees do not receive the payments in some situations because QuickBooks direct deposit didn’t go through. If that is the case, you should immediately fix the issues related to Direct Deposits as this may also be a matter of your company’s reputation.
This guide will let you know different scenarios in which you may encounter problems with Direct Deposit. Based on your issue, you can solve the problem.
- Things to Do Before You Fix Issues Related to Direct Deposit
- How to Fix QuickBooks Direct Deposit Didn’t Go Through Error?
- Issue 1: QuickBooks Desktop Direct Deposit is Taking so Long
- Issue 2: Facing an Error While Creating the QuickBooks Direct Deposit for the First Time
- Issue 3: Direct Deposit Error When Creating Request File but the Transmission Failed
- Issue 4: Employees Did Not Receive the Direct Deposit Made in QuickBooks Desktop Payroll
- Issue 5: QuickBooks Direct Deposit Didn’t Go Through
- Issue 6: Wrong Account Details
- What If You Enter the Account Information of Another Employee
Things to Do Before You Fix Issues Related to Direct Deposit
Before you go to fix the “QuickBooks direct deposit didn’t go through” error, we suggest you consider a few things such as verifying the bank account. Besides that, you should enter the bank account details of the employees and generate the paychecks for the direct deposits.
Step 1: Check the Bank Account
While signing up for the account, Intuit verifies the bank account that is provided by you. Less than $1.00 will be charged (in two small withdrawals) for the verification. The purpose of charging these amounts is to verify that you are an authorized user. To avoid any kind of conflict, it is important to vary your bank account.
Step 2: Enter the Bank Account Details of the Employees in QuickBooks
It is important to add the details of an employees’ bank account to whom you want to pay through the Direct Deposit. The Direct Deposit of the paycheck should be written by the employee as approval.
Step 3: Create Paycheck for the Direct Deposit
To generate a paycheck in your QuickBooks Desktop Payroll, one has to select the payroll check type. After that, you can enter the required information displayed on the screen. Also, make sure that you choose the printing options as per your preferences.
Important Note: You are supposed to perform the aforementioned steps before 5:00 PM PT, two business days before the date of the check. By doing so, you can avoid any kind of errors in QuickBooks Direct Deposits.
How to Fix QuickBooks Direct Deposit Didn’t Go Through Error?
The issues in Direct Deposit can be spotted in different ways. Therefore, we will show you the resolving methods based on the type of error you are viewing in QuickBooks Desktop Payroll. You can go through the following issues and get the problem solved in minutes.
Issue 1: QuickBooks Desktop Direct Deposit is Taking so Long
If you have processed the Direct Deposit in QuickBooks but it is taking too long to be processed then you are required to contact the bank of your employee. By doing so, you can check the payroll status. But, before contacting the bank, make sure you confirm the following details:
- Click on the “Employees” menu.
- Then, choose the “Send Payroll Data”’ option.
- In the section of “Items Received”, you can search for the payroll data confirmation.
- Now, you can choose the relevant confirmation of your payroll.
- Select the “View” button to check the confirmation information.
Once you confirm these details, you can connect with the bank representative. The bank will help you understand why the Direct Deposit takes too much time to be processed. You can also know about the payroll status. By doing so, you can find out when your payroll will be displayed in the account.
Issue 2: Facing an Error While Creating the QuickBooks Direct Deposit for the First Time
There can be instances when you create the Direct Deposit for the very first time but it shows an error message that the paycheck is in the process of completion. In such a situation, you are required to issue the check manually for the amount of the employee.
If you are unable to approve the Direct Deposits together while issuing the first DD then it may lead to an error. To resolve this, you can be required to do the following:
- Remove all the DD paychecks
- Approve all the DD paychecks
- Recreate all the DD paychecks
By doing so, you can fix the issues related to Direct Deposit in QuickBooks. Remember that these steps should only be followed when you process the payroll with direct deposit for the first time.
Issue 3: Direct Deposit Error When Creating Request File but the Transmission Failed
When you create a request file, an error may take place while showing the message that the transmission failed after sending the payroll information. To resolve such errors, you can perform the following steps:
- First of all, log in to your QuickBooks account as an administrator.
- Now, you need to switch your account to the “Single-User” mode. For this, you can click on the “File” menu and choose the single-user mode.
- Then, make sure that the “Employee Information” is verified. This can be checked from the “Employee Center”. Remember that the name of your employee does not consist of any double space and special characters.
- After this, try sending “Zero” payroll so that you can check the payroll connection. To do so, you can continue pursuing the following steps:
- Go to the “Employees” menu.
- Select the “Send Payroll Data”.
- In the “Items to Send” section, there should not be any paychecks.
- After that, click on the “Send” button.
- Once done, add the “Direct Deposit PIN”.
Now, you can wait until you see the confirmation message. This will surely fix the error related to the Direct Deposit in QuickBooks.
Issue 4: Employees Did Not Receive the Direct Deposit Made in QuickBooks Desktop Payroll
There can also be instances when a company sends the Direct Deposit but it is not received by the employee. To handle such errors, you should verify the information of the Employee’s Direct Deposit. Thereafter, you should add the Deposit manually for an employee. Let’s have a look at the following steps:
Verify the Direct Deposit Information
If the Direct Deposit has been rejected then you can view and update the information of your Employee’s Direct Deposit. To do so, you can follow the steps stated below:
- Launch “QuickBooks Desktop”.
- Go to the “Employees” menu.
- Then, click on the “Employee List”.
- Find the employee for whom you want to update the details and click twice on the employee’s name.
- Press the “Payroll Info” option.
- Now, click on the “Direct Deposit”.
- After this, you can review the data.
- If required, you can update the “Account Number” and “Routing Number”.
- Once done, click the “OK” button.
Enter the Direct Deposit Manually for the Rejected Payroll
Now that you have updated the information of an employee, you can add the deposit manually for that particular employee. Here are the steps for that.
- Click on the “Banking” menu.
- Move to the “Make Deposit” option.
- Here, you need to switch to the “Deposit to” list.
- Now, select the bank account to which you want to send the payment.
- Make sure you add the “Date” when your rejected funds were returned.
- In the “Received From” section, click on the “QuickBooks Payroll Service”.
- Moving ahead to the “From Account” section, add the “Direct Deposit Liabilities” account.
- Then, add the name of the employee in the “Memo”.
- Enter the amount in the “Amount” field. Make sure you add the same digits of rejected direct deposit.
- At this point, you can skip the “Check No.” and select the payment method. You can also choose the class in case you are using the “Class Tracking” feature.
- Once done, click the “Save & Close” button.
After performing these steps, you can click the Direct Deposit Liabilities balance so that you can verify that the balance is correct.
Issue 5: QuickBooks Direct Deposit Didn’t Go Through
If you are receiving the “QuickBooks direct deposit didn’t go through” error, you should know its reason. Such error can occur due to the following reasons:
- The bank account details of your employee are not correct.
- When you submit the Direct Deposit Payroll after 5 PM PST, you may encounter issues.
- The bank account of your employee can also create conflicts.
Such problems reject the Direct Deposit. As a result, the Direct Deposit goes back to the employer’s account. To resolve this kind of issue, you can settle the payment within 3 business days. You can even contact the bank if required.
Issue 6: Wrong Account Details
Employees may not receive the Direct Deposit due to incorrect bank details. If by any chance you send the payment to the wrong bank account, you can recover the Direct Deposit and send it to the right employee.
Wrong Routing and Accounting Number
- First of all, connect with the banking institution so that they can let you know the status of the wrong bank account.
- If your account is live then you should initiate the “Reverse a Direct Deposit” immediately.
- If the account is closed or no longer exists, you should confirm this with the bank customer support if the payroll is going to be rejected.
If your payroll has been rejected then the bank will send you the rejection notes via Intuit. But, if your payroll is not rejected yet, connect with the bank to get your Direct Deposit to be recovered.
What If You Enter the Account Information of Another Employee
While adding the bank account details, you may enter the details that belong to another employee’s bank account or you selected the incorrect employee account. In such cases, you should do the following:
- Connect with the employee you sent the payment mistakenly to settle the dispute via internal agreement.
- If required, you can initiate the Reverse Direct Deposit.
- Or, you can change the Direct Deposit bank account in QuickBooks
Bank Account is Closed for Which the Paycheck was Generated
After the Direct Deposit was initiated, if the employee’ account gets closed then recover the fund doing the following:
- Connect with the bank representative to know if the payroll has been rejected or not.
- If the payroll is rejected, they will notify you. But, if it is not rejected then you should coordinate with the bank to get the fund.
This way you can recover the funds that have been sent to the other account mistakenly via QuickBooks Direct Deposit Payroll.
QuickBooks Direct Deposit is one of the best features to send paychecks to employees and vendors. However, due to technical issues, you may find errors while sending or receiving the Direct Deposit. Saving wrong bank details can also cause problems. There can be other reasons for the errors. Therefore, we have talked about multiple issues related to Direct Deposit so that you can resolve the issue accordingly.
Do you want to cancel your Direct Deposit in QuickBooks? Learn here how to stop direct deposit in QuickBooks Desktop and Online.