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Direct Deposit is Not Working in QuickBooks: How to Fix It

Direct Deposit is Not Working in QuickBooks
Direct Deposit is Not Working in QuickBooks

Direct deposit is used to ease the payment process so that employees are paid on time. It directly deposits the amount into the employee's account, which is beneficial for both the employee and the employer. It reduces the stress of paying employees manually. However, this can sometimes lead to trouble. You might notice that direct deposit is not working, leading you to some sort of errors, such as QuickBooks error code 2107. Various factors can trigger this issue, such as a lack of admin rights, an inactive payroll subscription, a wrong direct deposit setup, and many others. 

In order to resolve this problem, we have compiled this blog into different sections to explain the problem better. Have a look at this page and explore the information. 

If you are still stuck with a direct deposit issue, don’t waste your time fixing it. Instead, connecting with an expert will be a great decision to get it fixed. Dial +1.833.802.0002 to consult a professional. 

Detrimental Causes Why QuickBooks Direct Deposit Fails to Run

Here are the potential reasons why direct deposit is not working:

  • You are not logged into QB as an admin.

  • It can occur if your bank account is not linked or verified.

  • An inactive payroll subscription can be a reason.

  • This may occur due to an inappropriate set of direct deposits.

Direct Deposit is Not Working in QuickBooks

After knowing the causes that prevent you from using direct deposit in QB, let’s move to the solutions that you can use to fix it. 

Update QB Desktop and payroll

  • Go to the Help menu.

  • Choose Update QuickBooks Desktop.

  • Tap on Update Now.

  • Click Get Updates.

  • Close QB and restart your computer.


Update payroll

  • Open QB and go to the Employee menu.

  • Choose Get Payroll Updates.

  • Click on Download Entire Update.

  • Hit OK.

  • At last, an informational window will appear when the download is complete.

Activate Direct Deposit in QB

  • Press F2 to open the Tech Help window.

  • Choose the Open File tab.

  • Double-click on the qbw.ini file.

  • Doing this will open the text file, where you need to go to this part: [QBLICENSE] PAYROLL_BUNDLE_STATE=Y.

  • Modify Y to N.

  • Go to the File menu.

  • Choose Save, which will open the qbw.ini file with the changes you made.

  • Move back to the QB Desktop.

  • Access the WF Invites or PTC.

  • After reaching the Payroll Activation window, go through the above steps again, but don’t change Y to N. Instead, delete the whole section: [QBLICENSE] PAYROLL_BUNDLE_STATE=Y].

Reconnect bank account

  • Open QB company and head to the Employees menu.

  • Choose My Payroll Service.

  • Click on Activate Direct Deposit.

  • Tap on the Getting Started option.

  • Choose Start on the Business tab

  • Later, tap on Next.

  • Now, you need to fill in the principal officer's information.

  • Click Next.

  • Add a new bank account.

  • Fill in the following information: Bank name, online banking login information, or if asked, enter the bank routing and account number. 

  • Create a PIN and verify it twice.

  • Choose Submit.

  • Click on Next.

  • Tap on the Accept and Submit option. 

  • If you are asked, you need to verify the SSN of the principal officer.

  • Choose Submit

Closing Remarks

We hope that this blog has sufficient information to explain why direct deposit is not working in QuickBooks. Also, you have been given some solutions to eliminate the issue. If you can’t fix it alone and need professional guidance, dial +1.833.802.0002.

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