Change your payroll bank account by editing the account in your Chart of Accounts, then updating the bank details in your payroll settings

QuickBooks Desktop stores payroll bank information in two places: the bank account itself in your Chart of Accounts, and the routing and account numbers in your payroll settings. To change where payroll deposits go, you need to update both. The process takes about five minutes and does not require you to delete anything or start over with your payroll history.

The safest approach is to create a new bank account in QuickBooks first, verify it works for one payroll cycle, then retire the old account. This way, if something goes wrong, you still have a record of where money went before.

Key Takeaways

  • You must update the bank account in your Chart of Accounts and then change the routing and account number in your payroll settings — changing only one will cause deposits to fail.
  • Creating a new bank account in QuickBooks and testing it with one payroll run before retiring the old account prevents missed deposits.
  • Your payroll service provider (ADP, Guidepoint, or another third party) may also store bank details on their end and require a separate update there.
  • If you change banks entirely, contact your new bank to confirm they accept ACH payroll deposits and get the correct routing number before you enter it in QuickBooks.

Add the new bank account to your Chart of Accounts

Open QuickBooks Desktop and go to Lists > Chart of Accounts. Look for the bank account you currently use for payroll — it is usually labeled something like "Payroll Bank Account" or "Operating Account." Right-click on it and select Edit Account to see the current routing and account number, so you have it for reference.

Close that window without making changes. Now create a new account by clicking Account > New at the bottom of the Chart of Accounts window. Choose Bank as the account type. Name it something clear like "Payroll Bank Account — New" or include the bank name. Enter the routing number and account number for your new bank account. Leave the opening balance at zero unless your new bank requires you to transfer money in first (in which case, enter that amount and the date you transferred it).

Click Save & Close. The new account now appears in your Chart of Accounts, but QuickBooks is not yet sending payroll there — you have to tell it to.

Update your payroll settings to use the new account

Go to Employees > Payroll Setup (or Payroll Center depending on your QuickBooks version). Look for a section called Payroll Account or Bank Account for Payroll. Click Edit next to it.

A window will open showing the account currently assigned to payroll. Click the dropdown and select the new bank account you just created. Confirm that the routing number and account number match what your new bank gave you. Click Finish or Save.

QuickBooks now knows to send payroll deposits to the new account. However, if you use a payroll service provider — such as ADP, Guidepoint, or another third-party processor — you must also update the bank details on their platform. Log into your payroll provider's website or call them to change the account on file there. They will not pull the new information from QuickBooks automatically.

Test the new account with one payroll run

Before you retire the old account, run one payroll cycle and confirm the deposit hits the new bank account. This usually takes one to three business days after you process payroll in QuickBooks. Check your new bank's online portal or call them to verify the deposit arrived.

If the deposit goes through, you can safely delete or archive the old payroll account in QuickBooks. If it does not arrive after three business days, contact your payroll provider immediately — they may not have received the updated bank details, or there may be a mismatch between what you entered in QuickBooks and what your new bank has on file.

Delete or archive the old payroll account

Once you have confirmed deposits are going to the new account, you can remove the old one from active use. In your Chart of Accounts, right-click the old payroll account and select Edit Account. Check the box that says Inactive and click Save & Close. This hides the account from your day-to-day lists but keeps all historical transactions intact for tax and audit purposes.

Do not delete the account outright — QuickBooks will not let you delete an account that has transactions in it, and even if it did, you would lose your payroll history. Marking it inactive is the correct approach.

Verify with your payroll provider if you use one

If your payroll is processed through a third-party service, log into their portal and confirm the new bank account is showing as your current payroll account. Some providers require you to verify the new account by confirming two small test deposits they send to it — this is a security measure and usually takes one to two business days.

If your provider shows the old account still on file, call them directly. Email confirmations of bank changes sometimes get lost, and a phone call ensures the change is recorded and processed the same day.

What to do if a payroll deposit goes to the wrong account

If you process payroll and the deposit lands in the old account instead of the new one, the most common cause is that your payroll provider did not receive or process the bank change. Stop and contact them before processing the next payroll cycle. Ask them to confirm the new account is active on their end and to reverse or redirect the deposit if possible.

If the deposit went to the new account but the amount was wrong, or if only some employees received deposits, check that all employee records in QuickBooks have the new account selected. Go to Employees > Employee Center, open each employee record, and verify their payroll account assignment. Occasionally an employee's record will be set to use a different account, which overrides the default payroll account setting.

Frequently Asked Questions

Do I have to create a new account, or can I just edit the old one?

You can edit the old account directly by changing its routing and account number in the Chart of Accounts. However, creating a new account and testing it first is safer because it lets you catch errors before you retire the old account. If you edit the old account and make a mistake, you lose the record of where payroll went before.

What if my payroll provider is not accepting the new bank account?

Call your provider's support line and ask them to manually update your account on file. Some providers require you to verify the account by confirming small test deposits, which can take a few days. Ask them for a timeline and whether they need any additional documentation from your bank.

Can I use the same bank account for payroll and regular business expenses?

Yes, many small businesses do this. In QuickBooks, you would just assign the same bank account to payroll. However, keeping payroll in a separate account makes it easier to track payroll expenses and reconcile your bank statements. It is not required, but it is a common best practice.

Will changing the payroll account affect my payroll history or tax records?

No. Your payroll history, employee records, and tax filings remain unchanged. QuickBooks stores all that information separately from the bank account assignment. Changing the account only tells QuickBooks where to send future deposits.

How long does it take for the new account to start receiving deposits?

Once you update the account in both QuickBooks and your payroll provider, the next payroll cycle will deposit to the new account. The deposit itself usually takes one to three business days to appear in your new bank account, depending on your bank's processing speed.