A direct deposit refers to a transaction in which a sum of money is transferred directly from one account to another. But if in case incorrect information is passed within your books then you may want to know “how to cancel direct deposit in QuickBooks“.
It is a basic transaction that every organization needs to record in their books. If you don’t already know this then you should continue reading.
A direct deposit is mostly used for paying contractors, subcontractors, and employees. This is a payroll-specific task. Direct deposit has several advantages, the biggest one being cost efficiency.
- 1 Direct Deposit Cancel in QuickBooks
- 2 Steps on How to Cancel Direct Deposit in QuickBooks
- 3 How do I Stop Direct Deposit
- 4 How to Void Payroll Check in QuickBooks
- 5 Get solutions to all of your accounting and bookkeeping problems with industry leading experts
- 6 FAQ’s
Direct Deposit Cancel in QuickBooks
Banks use the ACH (Automated Clearing House) to validate and complete the direct deposit payment initiated by the employer. The ACH is responsible for handling everything regarding the payment. Once a request reaches the ACH, it cannot be canceled. Similarly, if you’ve initiated the payment through QuickBooks, and the deposit request has reached the ACH, then it will be impossible for the transaction to be canceled.
Steps on How to Cancel Direct Deposit in QuickBooks
If the transaction hasn’t reached the ACH, then follow the steps provided below to the status of the payment request:
- From the top menu bar, select Employees
- Choose My Payroll Service
- Click on Account/ Billing Information
- Log in with your account id and password
- Open the direct deposit section. Select View Payroll Activity
- In the payroll transmission option, you’ll be able to view the status of the paycheck you want to cancel
If the transaction hasn’t completed, then proceed with these steps otherwise contact your bank for further information about the issue:
- Log into QuickBooks payroll with an administrator account
- From the top menu, select Employees
- Click on Edit/ Void Paychecks
- A new window will appear. Filter and search for the paycheck you want to cancel. QB provides multiple filter options that facilitate the search.
- Select the check you want to cancel and click on Void
- Confirm that you want to void the check by selecting Yes in the confirmation dialogue box.
- Now we need to send the request over through the payroll service. For this, we’ll once again go to the Employees option from the top menu bar
- Click on Send Payroll Data
- Select Send. QuickBooks will attempt to connect to the network and send a request for the cancellation of check.
- In fact, if you make any modifications to the paycheck, do not forget to send the request over with this option.
- The changes would not reflect and the transaction will be authenticated.
When all is done, pat your back as you have successfully answered your query on how to cancel direct deposit in QuickBooks.
You can go into the records and check whether or not the check has been voided. In the information provided for the paycheck, you’ll be able to spot the information about the void and cancellation of checks. Once this request is sent by QuickBooks, it cannot be reversed. If you want to continue with the payment, you’ll have to submit a new paycheck.
Note: If no information shows up regarding the voided check, then there is a chance that the request was not sent properly by QuickBooks.
How do I Stop Direct Deposit
If the transaction request has not reached the ACH yet, then you can easily cancel it by following the methods mentioned in this article.
It takes up to 2 days for the banks to clear the paycheck or the electronic transfer request. Usually, after two days, the transaction is completed at 5 PM, Pacific time. Hence, you can cancel your transaction anytime before that.
Note: If the transaction request was sent on a Friday, the transaction will be completed on Wednesday.
The Send Payroll Data, option contains all the information about each voided check.
You can try sending the void request again through QuickBooks. By doing so, your request will be sent once again. Also, please make sure that your internet connection is working properly and the user account you’re logged in through has the privileges to edit and void checks in QuickBooks.
How to Void Payroll Check in QuickBooks
To send a void request again, follow the steps provided below:
- Open the Send Payroll Data option, by going to Employees from the top menu bar
- Select the check that was voided
- In the memo text input field, it will say Void: Direct Deposit
- Remove this line from the input field and click on Save and Close
- Again select the check that you want to void
- Click on Void Paycheck
- Select Save and Close
A request will be sent once again. You’ll be able to view the information about the cancellation of the check-in in the send payroll data window. If the check has been voided, then the operation was successful.
Hope you are now able to fix your issue i.e. how to cancel Direct Deposit in QuickBooks and set up QB payroll direct deposit form. If you contact us before the check has been submitted to the ACH, we’ll cancel your paycheck for you. To know more, feel free to contact us.
But if you are still facing a problem then you should get yourself connected with QuickBooks Support. AskForAccounting is a QuickBooks consulting firm that can help you through the entire process of canceling the paycheck.
Get solutions to all of your accounting and bookkeeping problems with industry leading experts
By When can I Cancel a Given Paycheck?
You can cancel a paycheck only before it is sent to the ACH (Automated Clearing House.) A paycheck is usually kept with the bank for two days before being sent to the ACH. Before that, you can easily cancel the paycheck with the information provided above.
What is a Good Time to Reach Your Technical Support Team?
Our QuickBooks Pro-advisor support team is available round the clock to resolve issues faced by users such as you. If you want to cancel a paycheck, we’ll recommend that you reach out to us as soon as possible.