Does funding account mean that the funds will go into that account or the funds will come from that account?

Thank you for reaching out with your question regarding the "funding account" in QuickBooks Online Payroll, director-palmett.

When processing payroll and you see the term funding account, it means that the funds will come from this account to pay your employees. Essentially, the funding account is the bank account you have designated for your payroll expenses, and it will be debited to cover your payroll obligations.

To provide a detailed explanation:

Following the offloading, the direct deposit payroll is electronically sent to Intuit's Automatic Clearing House for processing. Intuit will debit your bank account 1 banking day before the paycheck date. The debit from your bank account can happen within a 24-hour window.

Technically speaking, our direct deposits are handled in a two-step process. First, Intuit pays your employees with their net amounts from Intuit's bank account. In the second step, Intuit withdraws the total payroll amount from your bank account.

When you’re ready to pay your employees, ensure you have sufficient funds in your account to cover the payroll on the day it’s submitted. Please note that Intuit doesn’t process payroll on weekends or state and federal holidays. If the paycheck date falls on a non-banking day, the funds will be credited to the employee's bank account on the next banking day.

I've added the following articles for more information on direct deposit processing:

• When to send your direct deposit payroll
• How do federal holidays affect my direct deposit?

I hope this has clarified your concerns and provided you with sufficient information. If you have any additional questions about direct deposit, please do not hesitate to ask.