Paying Employees Instantly With QuickBooks' Same-Day Deposit—Is It Worth It?
Published November 15, 2022.
Administering payroll accurately and punctually is essential for keeping employees happy, maintaining precise records, and anticipating cash flow—and you can ensure this with QuickBooks Payroll and same-day deposits. The feature is easy to set up and use, and offers significant benefits over manual payroll methods.
Payroll by QuickBooks provides time tracking, automatic tax calculations and remittance, benefits administration, and same-day direct deposit. Here, we'll take a deeper look into this feature's benefits so you can decide whether it's worth it for your business.
» Need help running payroll? See the payroll software features you need.
How Do Same-Day Deposits Work on QuickBooks?
The same-day deposit function is available at no additional cost for the subscribers of either the Premium or Elite payroll package. It's important to note that the feature can only be used to pay full-time employees, not contractors. The setup and use of the same-day deposit function are straightforward, and QuickBooks has dedicated customer support should you need assistance.
How to Set Up the Same-Day Deposit Function
To deliver same-day deposits to your employees, you'll first have to set up the same-day deposits function by following these steps:
- Upgrade your QuickBooks Payroll subscription to a Full-Service Payroll plan to get the same-day deposits feature for free.
- Download the direct deposit authorization form from QuickBooks. Have each employee fill out, sign, and date the form and provide a voided check.
- Use the employees' forms and voided checks to enter their bank details into the payroll system.
How to Use the Same-Day Deposit Function
Once you've set up the same-day direct deposit function, here's how to use it:
- Enter your employees' details into the system. For accurate payroll, details such as hours worked, sick leave, overtime, or vacation pay must be entered.
- Schedule the pay run to process before 7 AM Pacific Time on payday.
- You'll see the cash deducted from your account and deposited into employees' bank accounts on the same day.
» Do you know the difference between employee compensation and benefits? Learn the fundamental ways in which they differ.
Benefits of Same-Day Deposits
Same-day deposits hold many benefits both for you and your employees. As the employer, same-day deposits can be significantly more convenient—you can make payroll processing more effective by automatizing it or setting payroll to run from anywhere. Same-day deposits also help with cash flow, as opposed to other payroll services with which you might wait several days before payroll deductions are made. This could cause your account to be overdrawn, especially if you're tight on cash.
Distributing paper payroll checks can be problematic for many reasons. With same-day deposits, you won't have to worry about checks going missing or getting lost before being cashed. What's more, employees who may be sick or out of town won't have to personally come in to collect their checks, and they won't have to go into the bank to deposit their payment.
» You've overpaid your employee wages using payroll software? Here's how to fix it.
Is QuickBooks' Same-Day Deposit Function Worth It?
QuickBooks's same-day deposit function has both advantages and disadvantages, so its worth as a small business payroll software can only be determined by your business' needs and budget.
Implementing the same-day deposits feature is an easy process, and QuickBooks offers several customer support options. Same-day deposit is a feature that very few competitors offer to their customers.
However, despite its benefits, the higher cost of the packages this feature comes with and limited integration can deter some businesses from signing up. Although QuickBooks can seamlessly integrate with Gusto, you can't integrate payroll with your accounting system if you use one other than QuickBooks.
Ultimately, whether the same-day deposit function is worth it depends on you as the business owner. Your business needs and budget will determine if this feature is feasible for your business.
» Interested in QuickBooks' same-day deposit function? Read our review of QuickBooks to learn more about the software or find some of its alternatives.