Register payroll payments for direct deposit

Register for direct deposit to make your payroll payments electronically through Xero. You'll need to add a primary contact and bank account in Xero then review, electronically sign, and submit the Terms of Service to our direct deposit partner. You'll also need to enter test debits to verify the bank account.

Ensure your Legal / Trading name in Xero is the legal business name you have registered with the IRS to avoid delays.

How it works

  • The registration process for direct deposit is available for most banks and typically takes ten to fifteen business days to complete, but can take longer.
  • You'll need a primary contact for direct deposit with Payroll Admin permissions and a bank account. The primary contact is the person who receives all direct deposit confirmation emails advising of approved deposits, and all notification emails. For example, notice of failed deposits for inadequate funds, or wrong bank information. These emails are only sent to the one contact.
  • Review, electronically sign, and submit the Terms of Service to our direct deposit partner to enter test debits to verify your bank account.
  • Once approved, there's a four business banking days lead time between the time you submit your payroll and when your employees receive their funds. Please allow for this in your processing time.
  • The cutoff is 12-noon Pacific Standard Time (PST) on payment day. For example, if you process the pay run at 11am PST on Monday, it should show in your employees' bank accounts on Friday. If you process the pay at 1pm PST on Monday, it should go into your employees' accounts on Monday the following week.
  • If a holiday comes between the payment day and the day you want the funds in your employees' accounts, you'll need to process the pay run one business banking day earlier to cover it.
  • Once you've been active for 90 days with Forte, you can apply for a shorter lead time if needed.

Add a primary contact and bank account

  1. In the Settings menu, select General Settings.
  2. Under Features, click Payroll Settings.
  3. Click the Electronic Services tab.
  4. Select the Direct Deposit tab and review your Account Settings including your bank account, account number, routing number, and account type. Enter your full routing and bank number to avoid registration delays.

    Xero uses the bank account information you've already set up for your organization and the account type from your chart of accounts. You can edit the bank account or the account type if you need. Any errors or conflicting information may cause delays or requests for further information to verify your account.

  5. Under Contact details, add:
    • The person who will be the primary contact and their phone number.

      The primary contact receives all direct deposit:
      • Confirmation emails advising of approved deposits. These emails include pay dates, employee names, and amounts paid to each employee.
      • Notification emails, such as notice of failed deposits for inadequate funds or wrong bank information.

    • Up to two owners or officers, and their contact information including the last four digits of their Social Security number. Ensure the owner/officer uses the name that appears on their Social Security Card.
  6. Click Save then Submit.

Xero emails the Terms of Service to the owners and officers. If you provide two owner/officers, both will receive the Terms of Service. Once they're reviewed, signed, and submitted, you'll receive an email about when to enter test debits to verify your bank account.

Verify bank account and set limits

After you receive a confirmation email, you'll need to verify two small transactions (under $1) from your bank account through Xero and provide paycheck limits. The debits should appear in your account 1-2 business days after Forte receives your set-up application for direct deposit.

Verify your bank account by processing two small debits

  1. Click the link in the email, then log in to Xero.
  2. Find the two debits from Xero (under $1) on your bank account statement for your direct deposit account.
  3. In the Settings menu, select Payroll Settings.
  4. Enter debit amounts in the Debit by Xero fields. You must type two digits in each field, with no decimal points.
  5. Click Verify.

Set your paycheck limits and email to Xero

Contact Xero Support with the following information:

  • Highest dollar paycheck you'll need for direct deposit
  • Highest dollar amount you'll need per month for all of direct deposit

What happens next?

Forte will review your application. When approved, Xero will send you a confirmation email and you can begin paying your employees with direct deposit. They will appear as separate entries on your business bank account statement.

Until that time you can pay your employees using paper checks. We will contact you if Forte needs any additional information during setup.