How to Fix QuickBooks Error 2107 (Direct Deposit Payroll Error)

QuickBooks enables employers to deposit salaries directly into employees’ accounts. While this functionality has helped many users, any arising issues can negatively impact the company’s reputation. One such issue is QuickBooks Error 2107, which affects direct deposit payments. The QuickBooks payroll error code 2107 can prevent timely payroll submission for your employees.

However, there’s no need to be concerned. Our specialists have prepared a detailed article on QuickBooks Error 2107 in QuickBooks Desktop.

What Does QuickBooks Error 2107 Mean?

QuickBooks error code 2107 is a payroll issue that disrupts the functionality of QuickBooks Payroll. Encountering and resolving this error can be frustrating due to its potential repercussions for users. The QuickBooks error 2107 indicates problems with the application’s ability to process direct deposits. Let’s explore some of the causes of error 2107 in QuickBooks Payroll.

Causes of QuickBooks Error 2107

Identifying the source of any QuickBooks error code is crucial for its resolution. Therefore, before assisting you in resolving Payroll Error 2107 in QuickBooks, let’s examine the underlying reasons for the QuickBooks error 2107. It’s essential to review the list below, as this will help you choose the most appropriate solution for fixing the error 2107 QuickBooks payroll.

• Improper QuickBooks Installation: If your QuickBooks installation is incomplete, essential payroll components will not be able to function currently. 
• Corrupt Windows Registry: Damaged registry entries can interfere with payroll services, which causes direct deposit transmission. 
• Deleted Program Files: If there are any missing files in QuickBooks, then it may disrupt the payroll processing. 
• Virus or Malware Infection: Malicious programs can corrupt QuickBooks files and windows which are essential for payroll. 
• Network Timeout: When the system fails to establish communication with the payroll servers due to a network timeout, it may lead to Error 2107. 
• Unstable Internet Connection: Weak network connectivity interrupts payroll submission. 
• Firewall or Security Issues: Security software may block QuickBooks from connecting with the payroll services.  
• Multi-User Mode Conflict: Sending payables in multi-user mode can create file access conflicts.

Signs and Symptoms of QuickBooks Error 2107

Before the QuickBooks system completely stops processing the payrolls it offers some signs. Identifying them can assist you in solving the issues early.

• Connection Errors: You may notice internet or server failures while processing payroll tasks. 
• QuickBooks Freezing: The QuickBooks software may stop responding or crash while managing payroll. 
• Delays in Employee Payments: There will be delays in employees’ payments. 
• Error Message Displays: Error 2107 text appears while payroll submission. 
• Failed Direct Deposit Transmissions: Payroll is not processing when you try to send payments.

Solutions for QuickBooks Error 2107

Promptly addressing any error, no matter how small, is essential. QuickBooks as an accounting software, contains vital data built up over the years. Even a minor error can threaten this information. Specifically, QuickBooks Error 2107, related to payroll, may result in data corruption. Here are the recommendations from our experts for how to fix QuickBooks error code 2107.

Solution 1: Utilize the Verify and Rebuild Data Tool

You can use the Verify and Rebuild Data Tool when we suspect that company file damage is triggering Error 2107. This method scans your file for data integrity issues and repairs minor corruption. Once implemented. It restores file stability and often allows payroll transactions to process without interruptions.

Verify Data Test

• Download QuickBooks & launch it.
• In the top menu, click on File, then go to Utilities.
• Select Verify Data from the menu to scan your company file for any possible data issues.

• If no errors are detected, you will see a confirmation message stating that your data is in good condition.

Rebuild Data if Issues are Found

• In case any errors arise while verifying data, a suggestion to use the Rebuild Data tool will appear.
• Go back to the File menu, navigate to Utilities, and choose Rebuild Data.

• Before beginning the rebuild process, you will be asked to back up your company file. Make sure to create a secure backup.

• After the backup finishes, the Rebuild Data tool will start correcting any file errors. The duration of this process will vary based on your company’s size file.

• After the rebuild process is finished, run Verify Data again to ensure all issues have been resolved.

This simple approach frequently fixes data-related issues, such as QuickBooks error 2107, ensuring your payroll operations continue smoothly.

Solution 2: Repair Windows Registry

This solution is helpful when registry corruption is affecting QuickBooks functionality. Fixing the Windows Registry helps to eliminate damaged entries linked with payroll components. Once repaired, system communication improves, and payroll submission errors may stop appearing.

• Select the Start icon found in the lower-left corner of the screen.
• Enter Command Prompt in the search bar and hit Enter.

Note: Press Ctrl + Shift simultaneously when opening the Command Prompt. If you receive a permission prompt, click Yes to continue.

• In the Command Prompt, enter Regedit and hit Enter to launch the Registry Editor.
• Before implementing any modifications, choose the last functional file and go to the File menu.
• Select the Export option.

• Choose a folder for the backup file and be sure to indicate the brand in the Export Range box.
• Click Save to store the file as a .reg extension.
• Reboot your system to see if the QuickBooks payroll error 2107 persists.

Read More: Resolve QuickBooks Error 1304 | Error Writing To File

Solution 3: Install Windows Updates

We install Windows updates to resolve compatibility issues between your operating system and QuickBooks. Outdated system files can disrupt the payroll processing. Once you install the update, the system performance will improve, and background conflicts will reduce.

• Access the Start menu on your system.
• Enter Update in the search bar and hit Enter.
• The Update screen will show up, asking you to install the necessary updates.
• Hit Install Updates to continue with the installation of Windows updates.
• Complete the update process before rebooting your system.
• Open QuickBooks Payroll and continue processing salaries for the employees.

Solution 4: Execute the System File Checker

When damaged system files are causing instability, you need to run the System File Checker. This tool scans and replaces corrupted files automatically. After execution, system-level errors are often resolved.

The System File Checker tool scans for, identifies, and fixes errors. Please follow these steps:

• Simultaneously press the Windows and R keys to open the Run window.
• Type command in the search field but don’t press Enter. Instead, use Ctrl + Shift + Enter to access the command prompt.
• A dark window featuring a blinking cursor will show up.
• Enter SFC/Scan now and hit Enter.
• The QuickBooks Error 2107 will be detected and repaired by running the System File Checker utility.

Solution 5: Utilise Windows System Restore

If the error message starts appearing after system changes, you can go for System Restore. This process reverts the computer to its earlier state. Once completed, it will remove recent misconfigurations that may have triggered Error 2107.

• Go to the Start menu and look for System Restore.
• Hit Enter and, if prompted, enter your admin password.
• Use the wizard’s instructions to access the restore point.
• Reboot your system to check if the QuickBooks payroll error 2107 is fixed.

Solution 6: Clear DNS cache

You need to clear the DNS cache when network resolution issues interrupt payroll communication. Clearing DNS removes all the outdated IP records. After performing this step, QuickBooks reconnects more reliably to payroll servers.

• To open the Run window, press the Windows and R keys simultaneously. 
• Type CMD in the box and click OK. 
• Next, enter IPconfig /flushDNS and hit Enter. 
• This will clear the cache and help resolve the issue.

Read More: QuickBooks Error 2000 | Causes & Methods To Fix This Error

Solution 7: Download the Latest Payroll Tax Table Updates

An Outdated tax table can prevent direct deposit submissions, which causes Error 2107. Keeping payroll components updated ensures compliance with current tax rates and regulations.

• Open QuickBooks. 
• Next, go to the Employees menu. 
• Tap on Get Payroll Updates. 
• After that, select the checkbox for Download Entire Update. 
• Tap Download Latest Update. 
• Wait until you get a confirmation message that the update is complete. 
• Restart the QuickBooks software and send the payroll again.

Solution 8: Install the QuickBooks Desktop Security Certificate

When you have an outdated digital certificate, this can prevent authentication with Intuit servers. Installing the security certificate establishes a secure connection.

• Start by closing the QuickBooks Desktop. 
• Then, right-click on the QuickBooks Desktop icon. 
• Select properties. 
• Next, tap on the Open File Location. 
• Once the folder opens, navigate to the QuickBooks application file (.exe). 
• After that, right-click the file → select Properties again. 
• Visit the Digital Signature tab. 
• Select the signature → click on Details. 
• Lastly, tap on View Certificate → select Install Certificate. 
• Select Current User from the Certificate Import Wizard. 
• Click on Next, then Finish. 
• Restart your system and then reopen QuickBooks.

Solution 9: Make Internet Explorer your default browser

QuickBooks relies on specific browser components; hence, setting Internet Explorer as the default will ensure proper authentication of payroll services. Once configured, payroll submission becomes more stable.

• Navigate to default programs and select the option to set default programs.
• In the default program settings, select Internet Explorer.
• On the right side, you will find various options; select ‘set this program as default.’
• Finally, click OK to save your changes.

Solution 10: Disable Antivirus

Temporarily disposable antivirus software when it blocks payroll communication. Security programs may restrict data transmission. After disabling it, payroll processing can be done without firewall interference

AVG Antivirus

• Right-click the AVG symbol in the system tray in the bottom right corner of your window.
• A menu will pop up; select Temporarily disable AVG protection.
• You will need to indicate the duration. Select your preferred timeframe.
• Press the OK button to implement the changes.

McAfee

• Check for the McAfee Antivirus icon in your system tray.
• Right-click on the icon and choose Change settings, followed by Real-time Scanning.
• In the newly opened window, click on Turn Off.
• You will need to choose when to resume Real-Time Scanning. Pick a time from the drop-down menu and then click Turn Off.

Norton Antivirus

• Find the Norton Antivirus icon in your system tray.
• Right-click the icon and choose Open.
• In the main window, go to Settings.
• Within the settings window, select the Antivirus tab.
• Under the Automatic Protection section, toggle the Auto-Protect option to Off.
• A pop-up will request the duration for turning it off. Choose the duration and click OK.
• Apply the changes and close the settings.

ESET NOD32 Antivirus

• Locate the ESET NOD32 icon in your system tray. 
• Right-click it and choose Pause protection. In some versions, it is named as Temporarily disable protection. 
• A confirmation window will appear, prompting you to select the duration.
• Choose your desired length and click Apply.

Kaspersky Antivirus

• Locate the Kaspersky icon in your system tray. 
• Right-click on the Kaspersky icon, and then choose Pause Protection. 
• Confirm and specify the duration. 
• Select your preferred duration and click Confirm.

Solution 11: Update QuickBooks

Updating to the latest version of QuickBooks helps you resolve minor issues in the software. To address the QuickBooks Desktop error 2107, we recommend to update QuickBooks as well. However, before you initiate the update process, check to see if your QuickBooks application is already up to date.

Note: Updating the QuickBooks application will result in minor changes and enhancements. However, this process will not alter your QuickBooks company file.

• Start QuickBooks Desktop.
• Press F2 (or Ctrl+1) to access the Product Information window.
• Verify that your QuickBooks application’s version and release year align with the information available online.

Solution 12: Set up your Intuit Data Protect (IDP)

Configure IDP and Firewall permissions to ensure payroll services are not blocked. This allows secure communication between QuickBooks and Intuit servers:

• Press the Windows key and enter Firewall in the search bar.
• Hit Enter.
• Select the option to Allow an app through the Windows Firewall.
• Click on Allow another app.
• Use the Browse button to go to Program Files (x86) \ Common Files \ Intuit \ Data Protect.
• Add each file one by one.
• Make sure the Network Types setting is set to Private.
• Click the Add button.

Now, follow the steps below to include IDP in your trusted sites list:

• Press the Windows key and search for Internet Options.
• Hit Enter.
• Navigate to the Security Tab and select the Trusted Sites option.
• Click on Sites and add the IDP and Intuit websites to the list.
• Finally, click Close and then OK.

Solution 13: Disable Multi-User Mode

Switch to single-user mode to prevent file access issues. Multiuser mode sometimes interrupts direct deposit submission:

• Launch QuickBooks Desktop.
• Navigate to the File menu in the top-left corner.
• Choose Switch to Single-User Mode.
• QuickBooks will exit and restart in single-user mode.

Solution 14: Remove and Redesign the Direct Deposit Paycheck

Recreate the paycheck in QuickBooks when the direct deposit data is corrupted. Deleting the transaction refreshes payroll details. After reconstruction, the system processes direct deposit successfully:

Removing a Paycheck

• Navigate to Banking and select Use Register. 
• Choose your bank account and click OK. 
• Locate and open the paycheck. 
• At the top of the paycheck, choose Delete. 
• Confirm the action by entering OK.

Reconstructing the Direct Deposit Paycheck

• Go to Employees, then select Pay Employees, and choose Unscheduled Payroll.
• Input the same check date and pay period as the removed paycheck.
• Select the employee(s), then click Open Paycheck Detail.
• Unmark Use Direct Deposit in the preview.
• Re-enter payroll information (items, rates, and hours).
• Add the DD Offset with a negative amount matching the net paycheck in the Other Payroll Items section.
• Hit Tab to set net pay to $0.
• Click Save & Close, then Continue.
• Choose Create Paychecks.

How to Prevent QuickBooks Error 2107?

QuickBooks Error 2107 mainly disrupts payroll direct deposits due to system misconfiguration or blocked connections. Always keep your QuickBooks desktop updated so your payroll components stay relevant. Make sure your Windows are updated and the date and time are accurate. Remove all the special characters from the company file and configure firewall or antivirus settings to re-establish QuickBooks communication. Keep backups of your company files to avoid data loss issues. These measures help in avoiding payroll transmission issues and ensure seamless processing.

When Should You Seek Professional Help for QuickBooks Error 2107?

It is important to seek professional help if the basic troubleshooting process does not work. If the payroll updates fail repeatedly, subscription verification is not complete, or system crashes during payroll processing, it may indicate deeper technical issues. We have observed that in some cases, damaged company files, corrupted Windows, or complex payroll configuration needs expert restoration. If you are unsure about modifying system files or reinstalling payroll services, you can ask for professional help. Getting help in the early stage prevents compliance risks, reduces payroll delays, and prevents possible data loss.

Conclusion

By following the three steps outlined above, you should be able to resume your Payroll tasks without encountering QuickBooks Payroll Error 2107. Although these solutions are proven effective, it’s advisable to seek technical support if the application issue arises from unknown causes. This is indeed the simplest way to resolve the error. Call the support team at +1 (844)-214-9614 to find a quick resolution to your payroll error.