I have entered Direct Deposit as the method of payment for an employee but the system still issued a paper check for this pay period. Why would that happen?

Welcome to the community, krwwhitaker. Let's work together to figure this out and ensure your employee gets paid via direct deposit.

If you entered the employee's direct deposit information correctly, there could be a few reasons why QuickBooks Online Payroll issued a paper check instead of a direct deposit. One possibility is that the direct deposit setup for the employee is not fully activated. It's important to ensure that the employee has signed and confirmed the direct deposit authorization form as part of the setup process.

It's also possible that your current pay period was submitted as scheduled after you entered and activated the employee's direct deposit. This could explain why the system processed the employee's payroll through paper checks.

But you don't have to worry. Once you complete this setup, the next paycheck you create for the employee will be a direct deposit. Here's an article for more details about the setup: Set up direct deposit for employees.

I've also added these resources as a future reference in case you have problems processing direct deposits for your employees:

• Handle a direct deposit paycheck that was not received by an employee
• Understand the ACH (Automated Clearing House) return code reference chart

Let me know if you need further assistance or have other payroll-related concerns. I'll be here to help.