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D
DS127
September 1, 2021
Question

Direct deposit set up for employee but QBO says pay by check

  • September 1, 2021
  • 1 reply
  • 0 views

I have our client all set up in QBO Payroll, and she has run PR successfully.  Now she has to pay an employee (who had not been paid here previously, FWIW) .  She has all the direct deposit info entered, everything looks good. When she goes to Run Payroll, it shows this person as "Pay by Check" instead of, like the others, "Direct Deposit".   

 

I tried a different PR pay date, thinking bc the date she has is too close. Even putting it out a week doesn't change anything. What should I tell her?  

 

THanks! 

--Bonnie

1 reply

M
Mark_R
September 1, 2021

I've got your back, Bonnie.

 

Let's make sure that the employee payment method is set to Direct Deposit (DD). This way, your client can pay their employees through DD. Let your client follow the steps below:

 

  1. Sign in to your QuickBooks Online (QBO) account.
  2. Click the Gear icon, then select Payroll Settings.
  3. In the Bank account section, choose Employees.
  4. Select each employee and click Set Up.
  5. From the What do you use to pay your employee drop-down, select Direct Deposit.
  6. Click OK once done.

 

After these steps, your client can now pay their employees through direct deposit.

 

You might want to know when to submit payroll to pay your employees on time. This article lets you understand the direct deposit lead time and your payroll submission: Pay employees on time with direct deposit.

 

Please let me know if you need clarification about processing payroll with direct deposit. I'll be standing by for your response. 

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