how to change payment method for quickbooks payroll service

Nacha is the National Automated Clearing House Association, also known as the Electronic Payments Association. “It is also used for tax refunds, retirement benefits, expense reimbursements, investment distributions and insurance claim payments,” said Heather McElrath, senior director of communications at the National Automated Clearing House Association (Nacha). This process requires the employee’s bank account number, routing number, type of account, bank name and address, and the names of the account holders.ĭirect deposit isn’t just for paying wages. It’s also known as an automated clearinghouse (ACH) transaction.

It’s an electronic transfer of funds from an employer’s business bank account to an employee’s account at a bank or credit union. What is direct deposit?ĭirect deposit is the electronic form of a paycheck. Because of how important it is to pay your employees accurately and on time, small business owners must understand how direct deposit works and whether it’s right for their businesses. While direct deposit is a safer, cheaper, greener, and often more efficient way of paying employees, it’s not without the occasional problem. Thanks to direct deposit, your employees no longer need to head straight to the bank on payday.

We’ve come a long way since paper paychecks.

How to change payment method for quickbooks payroll service