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How Can I Fix QuickBooks Direct Deposit Not Working?

Direct deposit not working in QuickBooks issue is related to the employee payment in the program. As a business owner, it is an important task for you to keep an eye on your employee’s work hours and pay them accordingly. Direct deposit is a quick and effective way to pay your employees from within the QuickBooks Payroll service

However, when the error occurs, you won’t be able to make direct deposits to your employees. Worry not! It is not an unfixable issue, but you can eliminate it by implementing a few simple solutions. This friendly guide covers the best solutions for the QuickBooks direct deposit not responding issue so that you can make it work again. Let’s begin!

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Direct Deposit Feature in QuickBooks Payroll Service – A Brief

Before we move ahead, let’s develop a fair understanding of the Direct Deposit feature. QuickBooks Desktop payroll (a subscription-based service in the program) offers a direct deposit feature to business owners so that they can process payments on time accurately. You need to send the deposit to Intuit prior to the payday so that the payment can be processed on time.

When using this feature, if an error occurs, you need to determine its possible reasons and choose the troubleshooting procedures accordingly.

Read Also:- What To Do When QuickBooks Payroll Update Not Working

Why Is There a Problem With Direct Deposit in QuickBooks?

There are various technical and human reasons that can trigger the Direct Deposit error in the program. If you are not aware of why you are seeing this error, the below-stated steps can give you more clarity on this:

  • Incorrectly recorded bank information of the employees, such as account number, routing number, and several others.
  • You need to maintain the amount to be deducted from the direct deposit. If not, it can result in the failure of the direct deposit.
  • Sometimes, the direct deposit feature gets disabled unexpectedly in the program, preventing users from utilizing the feature.
  • When you fail to meet the deadline for the direct deposit in the QuickBooks Payroll, it will cause the QuickBooks direct deposit not responding to take place.
  • Before using the direct deposit feature, your business account should be verified by the QuickBooks application. If not, you will get the DD error in QuickBooks.

Read More- QuickBooks Payroll Error PS038: How to Resolve and Prevent

Can QuickBooks Direct Deposit Stopped Working Be Avoided?

Yes! Incorrectly configured Direct Deposit feature in QuickBooks can give rise to an error while paying employees using this feature. You need to configure Direct Deposit correctly in the program to prevent it from causing an error. Below are the complete steps for this procedure:

Step 1: Verify Your Business Account in QuickBooks

In the first place, you need to get your account verified by Intuit. The verification requires two withdrawals of amounts less than $1. These transactions verify that you are an authorized user. Once the authentication is done, you are authorized for payroll transactions and payments.

Step 2: Provide Accurate and Complete Account Information of Employees in QuickBooks

The employees you want to pay using Direct Deposit have their account information saved into QuickBooks. Before using Direct Deposit to make payments, you need to provide this information in QuickBooks and confirm that it is correct. Also, you will need your employee’s written approval to pay them using Direct Deposits. 

Step 3: Create Paychecks For Direct Deposits in QB Desktop Payroll 

After verifying your account and setting up your employees for Direct Deposit, you need to create paychecks for the same from within the QuickBooks Desktop Payroll. To create the paychecks, you will need to choose the payroll check time in the first place. Thereafter, you need to enter the relevant information according to the specified areas. Once done, you can choose a suitable printing option to print the paychecks for Direct Deposits. 

What If The QuickBooks Direct Deposit Not Responding Error Has Already Occurred? 

Even after considering all the crucial points, if you get Direct Deposit errors in QuickBooks, you need to override it by implementing the relevant solutions. Below are some effective solutions you can use to fix QuickBooks direct deposit stopped working error: 

First Solution:- Make Sure To Adhere To The Recent Regulatory Compliances 

You need to make Direct Deposits in compliance with the latest regulations, which say – QuickBooks must collect specific details for direct deposit setup. Below is the list of the details you need to check are shared and correct: 

  • Name of the business, address, and EIN.
  • Principal officer’s information, such as date of birth, social security number, and home address.
  • Bank information, such as online bank credentials and/or bank routing, plus account numbers.

Note: It is important to make sure that the Principal Officer’s information is entered correctly.

If you are still facing QuickBooks direct deposit issues, move to the next procedure. 

Second Solution:- Reconnect Your Business Bank Account to QuickBooks

Your second solution is reconnecting your bank account to QuickBooks Desktop Payroll by following the below-listed steps: 

  • When in QuickBooks Desktop Payroll, go to the Employees section.
  • Now, click My Payroll Service >> choose Activate Direct Deposit option >> select Get Started option to move ahead.
  • Next, hit the Start button for a specific Business tab and provide the required details and click Next
  • Thereafter, enter the principal officer’s information and hit the Next button again. 
  • Moving ahead, click Add New Bank Account and add the name of the bank here. 
  • Also, provide your Online bank credentials or Account Number and Bank Routing if you are prompted to do so. 
  • Now make a PIN for sending QuickBooks payroll and take note of it. 
  • Verify the PIN twice and then click Submit button. 
  • Proceeding further, click Next and then choose Accept and Submit option. 
  • At the end of this procedure, you will require to authenticate the principal officer’s Social Security Number and hit Submit. And You’re Done! 

Third Solution: Update QuickBooks To The Latest Maintenance Release/Patch

All applications release updates after a certain interval of time, and QuickBooks is no exception. The updates are meant to improve the program’s functionalities and eradicate bugs and glitches. Also, an outdated version of the QuickBooks application can make it prone to compatibility issues. Therefore, download and install the latest QuickBooks updates and check the status for the error resolution. 

Read Also:- What To Do When QuickBooks Bank Feeds Not Working


This post elaborates on direct deposit not working in QuickBooks error and also explains some easy fixes for the same. However, if you feel that further assistance is required for this error, connect with experts at +1-833-460-2030 to get instant help.