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R
RC Tax
July 14, 2021
Question

Direct Deposit verification for officers without SSN, only ITIN

  • July 14, 2021
  • 2 replies
  • 0 views

About Intuit new requirement for Direct deposit, I have a client who does not have SSN,  only ITIN, I have called twice to intuit support and they don't seem to know how to solve this problem, they just said "SSN is required", but what about submitting more information for them to review,  such as Drivers license or passport to be able to continue processing direct deposit as before, clients are running businesses, they need to pay their employees even when they as employers/officers do not have SSN, this is the reason IRS issued them EIN and ITIN, I guess....Does anybody here have the same issue? Any suggestions, Thank you,

2 replies

C
Charies_M
July 15, 2021

H there, RC Tax.

 

Allow me to jump in and give clarifications to your question about direct deposit verification requirements. 

 

The social security number is one of the important requirements when setting up a direct deposit. Intuit requires an SSN on file in order to have a personal guarantor that will serve as financially responsible for the account.

 

You can ask your client to visit the official IRS website to Social Security Number (SSN). 

 

This article provides complete information about direct deposit requirements: Direct deposit requirements, signup, and activation for QuickBooks Desktop payroll.

 

For a complete guide on how to set up direct deposit, kindly refer to the following articles:

Be sure to get back to me if you have additional queries about direct deposit. I'll be around to answer them for you. Have a good one.

R
RC TaxAuthor
July 15, 2021

Thank you for your response, but how am I going to tell my client to visit social security website when they do not qualify to get a SSN anyway, so basically, according Intuit,  a person doing business here can not be financially responsible just because his inmigration statutus?..It seems wrong, since the IRS already provide them EIN and ITIN to do business here, so It should be a way for you to validate their identity, they enven had to provide original passport to the IRS in order to get their ITIN number, so their number is legit and it should be taken into consideration for this process.(they open bank accounts  using this number)

There are couple more posts in this comunity about this topic, and some support team members have stated that it can be done with passports, or drivers license, but when I follow the steps to contact support, they do call me back but they do not provide any solution. There should be an email or portal or something to upload documents for you to verify that would make this process easier, but I guess the main point here is that Intuit does not recognize ITIN numbers as they recognize SSN.  Thank you for your help,

    Fiat Lux - ASIA
    Fiat Lux - ASIA
    July 15, 2021

    @RC Tax 

    It seems they just want to follow the regulation. Afaik, an ITIN is only available to resident and nonresident aliens who are not eligible for U.S. employment and need identification for other tax purposes. An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN.

     

    If they are freelances and contracted employees, you may utilize Meio to pay them.

    https://melio.grsm.io/quickbooks

     

      J
      joy876
      September 6, 2024

      Hi, have you received a solution to this.  I'm going through the same issue.  The business owner was able to get an EIN for his business and open the business bank account.  I don't understand why QB is requiring a SSN when direct deposit funds will come out of the business account which is linked to the EIN.  It's very frustrating.  Also, the latest update about not allowing ITINs to be entered for employees.  Not all have a SSN yet.  

      A shareholder is required to take payroll but if shareholder has an ITIN, how is QB blocking the ability to run this payroll when the shareholder requires payroll.  Any workaround? 

      I may have to look into another payroll software that allows this. Any solution/suggestion?

      JoesemM
      JoesemM
      September 6, 2024

      Hello, Joy876. I understand how important to verify direct deposit easily. I'll share insights on why SSN is needed when processing one in QuickBooks.

       

      QuickBooks requires a valid SSN for direct deposit verification, even if the business account is linked to an EIN. The SSN is used for identity verification purposes, ensuring compliance with regulations.

       

      This guideline complies with the Office of Foreign Asset Control (OFAC) of the U.S. government to help fight the funding of terrorism and money laundering activities. This requires us to obtain, verify, and record information identifying the principal officer of an account used for electronic services, including direct deposit. For more details, see this article: Principal Officer Verification for Payroll IDV Holds.

       

      Also, you can open these links to guide you in setting up direct deposits for your company and employees to pay them in QuickBooks:

       

       

      Post again in the Community if you have questions about direct deposit or with QuickBooks. I'm here to keep helping.

      J
      joy876
      September 6, 2024

      Thank you.  I understand that point but in this case, the IRS has received legal documents from this person in order to issue an ITIN and therefore register a business.  The bank has accepted the documentation and opened the bank account. For QB to not honor this when it's the business that's running the employees and payroll is frustrating.  

       

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