Where to find and change your direct deposit bank account

In QuickBooks Desktop, you change the bank account that receives direct deposits through the Employee Center, not through a separate payroll settings page. Open the Employee Center, find the employee whose account needs to change, click the pencil icon next to their name to edit their record, and navigate to the Payroll Info tab. The direct deposit bank account field is there, along with the routing number and account number fields that must match your new bank's details exactly.

The process takes about two minutes per employee once you have your new bank's routing number and account number in front of you. You will find both on a blank check from your new bank, or you can call the bank's customer service line and ask for them directly. Do not guess or estimate these numbers — a single digit wrong will cause the deposit to fail or go to the wrong account.

After you save the change, QuickBooks does not automatically notify your payroll processor or your employee's new bank. You will need to contact your payroll service separately if you use one, and your employee should notify their new bank that direct deposits are coming. Some banks require advance notice before they will accept incoming direct deposits.

Key Takeaways

  • Direct deposit bank account changes happen in the Employee Center under the Payroll Info tab, not in a payroll settings menu.
  • You need your new bank's routing number and account number, both of which appear on a blank check or are available from the bank by phone.
  • Changing the account in QuickBooks does not automatically notify your payroll processor or your employee's new bank.
  • The change takes effect on the next payroll run after you save it, so plan the timing if you are switching banks mid-pay-period.
  • If the routing or account number is incorrect, the deposit will fail and you will need to reissue payment by check or correct the account and try again.

Getting the correct routing and account numbers from your new bank

Your new bank's routing number is a nine-digit code that identifies the specific branch or processing center. The account number is unique to your account at that bank. Both appear in the lower left corner of a blank check in this order: routing number first, then account number. If you do not have a blank check yet, call your new bank's customer service number and ask for both numbers — they can provide them when ready over the phone.

Write down both numbers exactly as the bank gives them to you. Do not add leading zeros or remove trailing zeros, even if they look odd. QuickBooks will accept them as you enter them, but if they do not match what your bank has on file, the direct deposit will fail. Some banks also require that you register the employer's account as a source of incoming deposits before the first transfer arrives — ask your new bank whether this step is necessary.

The timing of when the change takes effect

QuickBooks applies the new bank account information to the next payroll run after you save the change. If you change the account on a Tuesday and your payroll is due Friday, the Friday deposit will go to the new account. If you change it after you have already processed payroll for the week, the change will not take effect until the following pay period.

This matters if you are switching banks and need to make sure money arrives on time. If you change the account too late in the pay cycle, you may need to issue a manual check to the employee for that period and let the direct deposit go to the new account starting the next week. Talk to your employee about the timing so they know when to expect the deposit in their new account.

What happens if you enter the wrong routing or account number

If the routing number or account number does not match what your bank has on file, the direct deposit will be rejected. The money does not disappear — it will be returned to QuickBooks or your payroll processor, and you will see a failed deposit notification. You then have to correct the account information, reprocess the payroll, and issue a replacement deposit.

The delay is usually one to three business days while the failed deposit is returned. To avoid this, double-check both numbers against your bank statement or a blank check before you save the change. If you are unsure, call your new bank and read the numbers back to them to confirm they are correct.

Notifying your payroll processor if you use one

If you use a payroll service like ADP, Guidepoint, or Paychex in addition to QuickBooks, changing the account in QuickBooks alone is not enough. You must also contact your payroll processor and update the bank account there. The two systems do not talk to each other, so the processor will still try to send the deposit to the old account unless you tell them otherwise.

Contact your payroll processor's customer service and ask them how to update direct deposit information. Some allow you to do it online through their portal, others require a phone call or a signed form. Do this at the same time you change the account in QuickBooks so both systems are in sync before the next payroll run.

Communicating the change to your employee

Tell your employee about the bank account change before the first deposit hits the new account. They need to know which account to watch and when to expect the money. If they are not expecting a deposit in the new account, they may think the payment did not go through and contact you in a panic.

Some banks also require that the account holder register the employer as an authorized source of deposits before accepting incoming direct deposits. Your employee should contact their new bank and confirm that direct deposits from your company are set up and ready to receive. This step prevents the deposit from being rejected on the bank's end even if the routing and account numbers are correct.

Frequently Asked Questions

Can I change direct deposit for multiple employees at once?

No, QuickBooks requires you to edit each employee's record individually. There is no bulk update feature for direct deposit information. If you are changing accounts for many employees — for example, if your company is switching banks — you will need to go through the Employee Center for each person and update their information one at a time.

What if an employee has direct deposit set up but I cannot find the bank account field?

Make sure you are in the Payroll Info tab of the employee's record, not the Address or Contact Info tab. The direct deposit fields only appear in Payroll Info. If you still do not see them, the employee may not have direct deposit set up yet, and you will need to enter the bank information for the first time rather than change it.

Do I need to tell the old bank that direct deposits are stopping?

No, you do not need to contact the old bank. Once you change the account in QuickBooks and process payroll, the deposits will straightforward stop going there. The old account will remain open unless you close it yourself, but no new deposits will arrive. You can close the old account whenever you are ready.

How long does it take for a direct deposit to show up in the new account?

Direct deposits typically arrive within one to two business days of the payroll processing date. The exact timing depends on your bank and your payroll processor. Ask your new bank how long incoming ACH transfers usually take to post so you and your employee know when to expect the money.

What if the direct deposit fails and I need to issue a check instead?

In QuickBooks, you can void the failed direct deposit and issue a manual check for the same amount. Go to the Check Register, find the failed direct deposit transaction, and void it. Then write a check for the employee's net pay and record it in QuickBooks as usual. The employee will receive the check instead of the deposit.