Fix QuickBooks Error 40001 (Unable to Activate Direct Deposit)

QuickBooks users who use Direct Deposit for payroll must update their account information according to new Federal Compliance Rules after the maintenance release. This includes updating the Principal Officer, Address, Physical Address, SSN, and other business info before a specified date. A warning message will appear in the Payroll Center prompting users to update their account info.

If users encounter QuickBooks Error Code 40001, they will need to follow troubleshooting solutions before submitting the updated account info to Intuit due to technical issues. You might see the following error message on your desktop screen:

What may Causes of QuickBooks Error 40001?

There are several reasons why QuickBooks error code 40001 occurs. Some of the most common causes include:

To activate or run payroll in QuickBooks, you must have admin rights.
Issues with running or activating payroll may also be caused by corruption in the company file since payroll data is saved there.
QuickBooks Desktop's Company Realm ID may not match what Intuit has on their end due to technical glitches between the program and the Intuit server.
This error may occur if the installation of QuickBooks Desktop has been tampered with, such as through accidental deletion of program files or interference from other programs.
The same error can occur if your QuickBooks Desktop or payroll tax table is not up to date with the latest updates.
If Internet Explorer is not set as the default browser on your Windows operating system, you may also get the error.

DIY Methods to Resolve QuickBooks Error 40001

Here are some steps you can follow:

Method 1: Running QuickBooks as an administrator

If you are not the network administrator, you should request the windows admin account credentials from your admin.
If you have the login credentials for the admin account, right-click on the QuickBooks Desktop icon.
From the pop-up menu, select the option to run QuickBooks as an administrator.
Enter the required login credentials when prompted and press the Enter key.
QuickBooks will start running with admin privileges.
Attempt to activate direct deposit or send the updated account info to Intuit again.
If running QuickBooks as an administrator does not resolve the issue, move on to the next troubleshooting solution.

Method 2: Fix the corruption in the Company Data

Open QuickBooks Desktop and navigate to the File tab.
Click on the Utilities drop-down menu in the File tab.
From the Utilities menu, select the option to Verify Data.

QuickBooks will start checking the data for any signs of corruption.
If the software detects any corruption, it will prompt you to repair it.
Click on the Rebuild Data option to initiate the repair process.

After the data repair is complete, try to perform the same action that caused the error again.

Method 3: Update Payroll Updates and QuickBooks Desktop

Launch QuickBooks Desktop with administrator privileges and navigate to the Help tab.
From the Help tab, choose the option to Update QuickBooks Desktop.

In the Update QuickBooks window, click on the Update Now tab.
Click on the Get Updates button and wait for the download process to complete.

After the download finishes, restart QuickBooks.
Next, select the Install Updates option and go to the Employees tab.
From the Employees tab, choose the Get Payroll Updates option from the drop-down menu.

Select the Download Latest Updates option and wait for the download to complete.
Once both QuickBooks Desktop and Payroll are updated to the latest version, try activating direct deposit again to see if the QuickBooks error 40001 is resolved.

Summing up!

If none of the previous troubleshooting solutions works for QuickBooks Error 40001, then the issue may be related to problems with the Realm ID. To get help with this process, you can call us at 1-800-615-2347. Our QuickBooks desktop error support will be happy to assist you.