Skip to main content
C
christina3
December 11, 2018
Solved

Question about timing of Direct Deposit deposit timing.

  • December 11, 2018
  • 6 replies
  • 0 views

Last week I ran a 'test' and set up one of my employees for direct deposit to try it out. I did it on Wednesday for Friday's payday. She received the deposit on THURSDAY! Payday isn't until Friday, so I didn't think that was right, and actually she and some other employees said they don't want to get it early! I thought if payday was Friday, that's when it would be deposited. Did I do something wrong?

Best answer by

The way ACH works the date send it the latest date the money should appear in the destination account.  However if the recipient bank wants to they can credit the money early.  There's no way to stop that and no need to manage it.

6 replies

A
Anonymous
Answer
December 11, 2018

The way ACH works the date send it the latest date the money should appear in the destination account.  However if the recipient bank wants to they can credit the money early.  There's no way to stop that and no need to manage it.

    C
    christina3Author
    December 11, 2018
    The way I read it is it said the funds will be made available to the employees account at midnight of payday.. The employee didn't like that she had the money early and two other employees were worried about it too..
    B
    Bryantifa
    May 18, 2022

    It sounds like your employees are morons. 

    D
    dso0216
    January 28, 2019

    Make sure payroll deposit dates are accurate before hitting send.  This most likely is not the case in your situation, however, I've had the date advance to sometime in the future randomly this past year.  I had one payroll that advanced to a date several days after the payroll was supposed to run.  Luckily, one of the employees actually read the notification email right away and alerted me to the date change.  I was able to contact Intuit payroll and have the deposits cancelled and resent for the correct date. 

    The same thing has started to happen with vendor payments.  I ran a batch of payments to vendors that went 2 weeks after they were to receive their payments.  This time the date error wasn't caught until an irate vendor contacted my client (to complain of course).  I've used QB desktop payroll since 2000 and can't ever remember this happening until now.  I've trained myself to double check the date in the send screen to make sure it's accurate.  Not sure what's changed??

    A
    Anonymous
    January 28, 2019

    Thanks for joining the conversation, @dso0216,

     

    I can add a bit more about the Direct Deposit processing timelines in QuickBooks Desktop.

     

    The time it takes for funds to get deposited to your employee's bank account is based on the check date (pay date) on the paycheck. Direct Deposit posting time or the availability of funds, however, is determined by their bank and is not controlled by Intuit.

     

    Our Support Team haven't updated our payment processing timelines; to make sure your employees' and vendors' receive their pay on time, please make sure the check date is accurate before the submission. You may want to check the "Direct Deposit processing timeline" of this article to know more about the process: Activate Direct Deposit

     

    That should get you on the right track, @dso0216. Do let me know if you need further assistance with your payroll processing. I'm available to help. Have a good one!

    D
    dso0216
    January 29, 2019

    I have a client who never received their direct deposit yet it's showing as deducted from the business account. I called the PA hotline and have been on the phone for over an 1 1/2 hour trying to explain the situation.  

    This rep. does not speak good English and there is so much background noise neither of us can understand each other very well.  I've been a Proadvisor since 1999 and have never experienced since poor customer service.

    This client is new and had 1 payroll in December that went through without issue. This is the 2nd payroll. I am very frustrated with this situation as is the client.

    Did Intuit change the way we access proadvisor support?  Why do I keep getting non-english speaking customer support? I used to go directly to the PA dedicated support team!

    M
    mhy003
    May 10, 2019

    It varies from bank to bank, but usually if you bank with a credit union, the effective date which the funds should be transferred may be available earlier than Friday. My company submits payroll on Wednesday, and all my colleagues who bank of credit unions see their funds hit their accounts on Thursday.  I reached out to a credit union and it was validated. 

     

    I bank of several of the big banks and Chase will make your funds available Thursday around 11PM PST. Bank of America will have funds available on Friday at 12:30AM PST, and Wells Fargo will show Friday 9AM PST. 

    L
    LCourville64
    November 5, 2021

    My situation is this. This week I tried using online banking with chime which turned out to be a mistake. So today after realizing that was a mistake my employee is rerouted my paycheck back to my regular bank account. How long will it take to get to my bank and be posted 

    C
    Catherine_B
    November 6, 2021

    Hello there, LCourville64.

     

    Let me chime in and share some insights on how to manage rejected direct deposits.

     

    If your employee doesn't receive their direct deposit on time, there are different steps on how the funds will be returned to your bank account. Most of the time, the direct deposit rejects and the money will be refunded to the business bank account within 2-3 banking days after the pay date. You can pay your worker with a paper check in the meantime. 

     

    However, if you're referring to the paycheck being posted in your bank feeds, we still depend on the bank when they'll clear them and be made available. Once they're cleared, you can categorize them. 

     

    I've also added this resource to guide you in creating direct deposit paychecks in QuickBooks:

     

    Please let me know if you have a follow-up question. I'll make sure to get back to you right away. Have a great day.

    F
    FORM 7200
    March 28, 2023

    Can you please tell me what is the cutoff for direct deposit if my check date is Friday?

    Also, do you know when Intuit takes the money from my bank?

    And do they pay the payroll taxes or can I continue to do online?

     

    Thank you so much.

     

    Joan [Removed]

    R
    Rea_M
    March 28, 2023

    Hello there, @Joan11_2.

     

    I'll gladly share some insights about when to send direct deposit paychecks so you can process payroll on time in QuickBooks Desktop (QBDT) Payroll.

     

    You need to send your payroll depending on your direct deposit lead time. If you're using Assisted payroll, you have a 1-day lead time. So when your paycheck date is Friday, you need to submit payroll by Thursday before 5 PM PT. If you have the Enhanced payroll service, your direct deposit processing time takes 2 business days. So you'll have to process payroll by Wednesday before 5 PM PT.

     

    To learn more about when to send your payroll to pay employees on time, please see this article: Submit payroll to pay your employees on time.

     

    Then, once your payroll is electronically sent to Intuit's Automatic Clearing House for processing, your bank account will be debited one banking day before the paycheck date.

     

    Moreover, paying your federal and state taxes would depend on your payroll service. If you wish to know more about this, you can refer to this article: E-file and e-pay federal forms and taxes in QuickBooks Desktop Payroll.

     

    Also, you can run a variety of payroll reports to view useful information about your business and employees. You may want to check out this article to see the complete list of available ones and how you can customize them in QBDT Payroll: Run payroll reports.

     

    Keep me posted in the comments if you have other payroll concerns or questions about managing employee transactions in QBDT Payroll. I'll gladly help. Take care, and I wish you continued success, @Joan11_2.

    R
    RobbinN7
    February 17, 2025

    I just recently experienced this, and I have been using QuickBooks for years. I used QuickBooks Online, and I would do payroll 2-3 days before payday. Never once was it deposited a day early. Last week at a new company, we finally got the direct deposit setup and for the first time for this company, I ran payroll through QuickBooks. They used a template on their banking website to direct deposit before. Several employees got their direct deposit a day early. I dated all checks for Friday. This did not go over well. Now I am being blamed for something I had no control over. QuickBooks Desktop insists on doing the direct deposit payroll 2 days early. 

    Terms & ConditionsAccessibility statement