Intuit recently announced the release of QuickBooks 2022 Desktop. The Author has been evaluating various pre-release versions of these products for almost a year and has spent hours communicating with Intuit personnel, including product managers and developers, so we can help you learn about the new products. This article is one in a series of individual product features intended to provide additional content to that found in our QuickBooks Desktop 2022 Product Summary.
About Next-day Direct Deposit for Assisted Payroll
When you use QuickBooks Assisted Payroll[i], this feature gives you the option of Next-day Direct Deposit. That means you can pay your employees faster, process payroll anytime before 5 pm (PST) the day before payday, and also keep your funds longer in your bank account.
This functionality will be available to all QuickBooks Desktop 2022 users, including Pro Plus, Premier Plus, QuickBooks Desktop Accountant, and all QuickBooks Desktop Enterprise Solutions (v22.0) versions in the United States. However, the Next-Day Direct Deposit feature requires a QuickBooks Assisted Payroll subscription.
How Next-Day Direct Deposit for Assisted Payroll works
Next-day direct deposit allows you to process payroll the banking day before payday. So you get to keep your money in your bank account until payday and more time to make sure your payroll is accurate before sending it to Intuit Payroll. And there is no change to your direct deposit limits, nor is there an extra charge to use Next-day Direct Deposit.
You don't need to make any changes to your payroll schedule to use Next-day direct deposit. For instance, to pay your employees on a Friday, process your Assisted-payroll any time before 5:00 pm PST on Thursday. Intuit Payroll won't debit your bank account for the direct deposits and taxes until Friday.
To begin using Next-day Direct Deposit, look in the QuickBooks Desktop Payroll Center for the Next-day Direct Deposit banner. You can also check your Process payroll by date. If you see the banner, or your process payroll by date, is the banking day before your payday, you can begin using Next day direct deposit.
Transmitting Next-day Direct Deposits and Payroll to Intuit
- From the QuickBooks Desktop, select Employees, then Send Payroll Data.
- In the Send/Receive Payroll Data window, review the dates under Items to Send, including Paychecks to process, Taxes, Direct Deposits, funds to be withdrawn from your account (not including applicable fees), and any changes in your payroll information.
- Select Send All, then enter your Assisted Payroll Service PIN, and choose OK.
- Upon successful completion of the transmittal, you will be returned to the Send/Receive Payroll Data window.
- Select Items Received, choose View, and select Confirmation Reports (you may print the reports for your records).
- Select Close to close the Send/Receive Payroll Data window.
- Another way to check if your payroll was transmitted properly other than using the Confirmation Report (discussed above) is by checking your QuickBooks Bank Register if you have online banking. QuickBooks will display a 'green lightning bolt' next to each payroll-related item sent successfully[2].
To learn more about this feature:
If you are reading this (due to our publication date), you either already attended or missed Insightful Accountant's special September QB Talks held on October 6, 2021, when Laura Madeira presented her version of "What's New in QuickBooks Desktop for 2022". You could read Laura's Intuit Firm of the Future article on QuickBooks Desktop 2022, or you could attend one of Laura's webinars she will be presenting on behalf of Intuit which you can register for at the Firm of the Future article website here.
Editor's Acknowledgements
A general acknowledgment to Intuit for graphic images used in this feature, Insightful Accountant adapted some images to emphasize a specific feature. The Author prepared some graphic images used in this feature from pre-release copies of QuickBooks 2022. Title art adapted from images courtesy of Intuit.
Footnotes & Disclosures:
[i] Available only with a QuickBooks Desktop Assisted Payroll subscription. Payroll subscriptions are in addition to any standard QuickBooks subscription unless a special combination package is offered. Requires setup of direct deposit and bank verification. Next-day direct deposit may be subject to eligibility criteria. Deposit delays may vary because of third party delays, risk reviews, or issues beyond the control of Intuit. Direct deposit service is free for W-2 employees, an additional fee will apply for 1099 contractors paid via direct deposit.
[2] Next-day direct deposits may be subject to individual financial institution policies that determine when such direct deposits are posted, but employees should receive their direct deposit before 5 PM their local time. Intuit does not guarantee that direct deposit funds will be available in bank accounts of employees by the paycheck data. Employers should advise their employees to check with their banks to find out when funds are posted.