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parishadmin
September 4, 2024
Question

fix payroll direct deposit

  • September 4, 2024
  • 1 reply
  • 0 views

Hi,

I ran payroll last week, all employees on direct deposit. QuickBooks withdrew the correct amount from my bank, and I have confirmed that all employees received their funds. However, I now have two employees whose paystubs have the 'Use Direct Deposit' box unchecked, and their net pay amounts still show up in my Direct Deposit Liabilities Account. I have tried to edit the paycheck and re-check the direct deposit box, but it doesn't save properly. How do I fix this!

    1 reply

    J
    Jelayca V
    September 4, 2024

    Let's work together to troubleshoot and ensure that your direct deposit settings are accurately applied for all employees to ensure accurate payroll records, @parishadmin.

     

    To begin, did you review any duplicate direct deposit paychecks in QuickBooks Desktop Payroll?

     

    Please know that this situation can occur if a paycheck has been voided after it was sent or if an incorrect backup file has been restored. Please check the paycheck for any direct deposit offset items.

     

    If you discover that the direct deposit (DD) box is unchecked, rest assured this is the proper setting to ensure the paycheck will not be processed back as a direct deposit.

     

    To clear the associated liability balance, you'll want to create a company adjustment that removes the deduction item from your liability balances. I'd be glad to show you how to get this done in QBDT:

     

    1. Navigate to the Employees menu, then Payroll Taxes and Liabilities
    2. Select Adjust Payroll Liabilities.
    3. Ensure Date and Effective Date match the paycheck's check date.
    4. Choose Company Adjustment.
    5. In the Item Name column, pick the direct deposit offset item needed.
    6. Enter a negative amount in the Amount field that equals the DD offset on your paycheck.
    7. Select Accounts Affected, then Do Not Affect Accounts. Click Ok once done.

       

    Once done, proceed to send your payroll data to us for synchronization, and include a memo indicating that the paychecks were processed via direct deposit.

     

    Additionally, consider running payroll reports to get a closer look at your business finances.

     

    If there's anything else I can help you with regards to managing your paychecks in QBDT, you can always click the Reply button for a follow-up. I'll make sure to respond. Take care.

    P
    parishadminAuthor
    September 5, 2024

    This did not work. The DD checks are there, the employee received their funds. Payroll got turned off somehow (like it does at random times) and when I turned it back on, these two employees have their DD boxes unchecks, and their net pay showing up as withdrawing from my account twice. I know it didn't happen, but its messing up my reports and my balance. How can I edit the paycheck journal to show the direct deposit occured?

    Bryan_M
    Bryan_M
    September 5, 2024

    I'm glad you came back here, @parishadmin. 

     

    Allow me to assist you this time to have an accurate recording of your Direct Deposit (DD) transaction.

     

    To verify, I'd like to know if you created a DD offset item for your employee's DD.

     

    If it doesn't have, you'll need to create one. Then, edit the DD and add the offset item to avoid messing up your balances even if the DD box is unchecked.

     

    Here's how:

     

    1. Select Payroll Item List from the Lists tab.
    2. Pick a Payroll item in the lower-left corner. Then, New.
    3. Click Next from the Custom Setup. 
    4. Then, choose Deduction and Next.
    5. Type in the name of the item for the DD offset name. Then, click Next. Once done, don't mind the two blank fields for Agency for employee-paid liabilities.
    6. Set up the Tax tracking type to None and pick Next.
    7. Select Direct Deposit Liabilities in the Liability Account field. After that, click on Next. Ensure there are no taxes and click Next.
    8. Place Neither in the Calculate based on quantity and Next. Set Gross vs Net to net pay and click Next.
    9. Leave the Default Rate and Limit section blank. Then, Finish.

     

    After that, open the check and add the item by editing it. Once done, perform the adjustment my colleague suggested above to clear the liability balance.

     

    You can read this article for more info: Recreate a missing or voided direct deposit paycheck in QuickBooks Desktop Payroll.

     

    Also, to see who made it or what the cause of the change is, you can check the Audit trail section.

     

    Moreover, I recommend updating your payroll to the latest one to fix the issue of the payroll turn-off after turning it on.

     

    Also, I'll add this article if you want to learn about the DD funding time: When to send your direct deposit in payroll.

     

    Feel free to return here if you have additional questions about managing your DD payroll transactions. We'll be willing to help. Keep safe always.

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