You need to complete the direct deposit set up to process direct deposit payroll in QuickBooks Online (QBO). If the direct deposit status is still pending, make sure to go through the steps from direct deposit initial set up, verify a test transaction direct deposit, and set up each employee on direct deposit. For more details, check out this article: How to set up payroll direct deposit.
If your account is still inactive, this may be caused by one of the following situations:
An invalid bank account is entered.
We weren't able to initiate the test transaction because your bank account had a zero balance.
An incorrect test transaction amount is entered.
If one of these scenarios arises, we'll send you an email with instructions for resolving it or contact Payroll Support for assistance.