What steps can I take to complete the process of a direct deposit for my new contractor to process?

Hi there, rcsurvrying.

Yes, you'll have to subscribe to any version of QuickBooks Online Payroll to complete the setup process.

To start using direct deposit (DD) make sure that:

• The direct deposit set-up is complete.
• You have 1 bank account assigned to use for all DD transactions only. The use of different funding bank accounts is not possible.
• You have an active subscription to any version of QuickBooks Online Payroll. If you have inactive W-2 employees or no employees at all, you still need to have a subscription to pay contractors with direct deposit.

Once you have already a payroll subscription, please follow the steps below on how to set up direct deposit payments for your contractors:

1. Click Workers at the left panel. Then, choose the Contractors section.
2. Select the contractor's name. The drop-down for Pay with direct deposit will show if the bank account is already added to the contractor's profile.
3. Hit the Add Bank link at the bottom of the page.
4. Fill in the contractor's bank account information, then choose Save.

For additional information, you can refer to this article: Contractor direct deposit. This article also provides information about the billing, timing, and process of using DD.

If you want to run reports showing the 1099 vendors and payments, please refer to this article for the steps: Create a 1099 report for vendors and vendor payments.

Please let me know if you have other questions related with your contractors. I'm always here to help.