Yes, you're right. Contractors can view their payments by inviting them to make their own accounts in QuickBooks Online (QBO). This process is available if you use direct deposit to pay the contractor.
However, if you use a service outside QuickBooks, you must send a copy of the payment for them to view.
Let me provide a brief description of the steps on how to invite a contractor:
1. On the left panel, click the Payroll tab. 2. Select Contractors.
3. Click the Add a contractor.
4. Fill in the Name and Email fields.
5. Click the box to the lower right of the Email field to invite your contractor, who can then create their own account.
6. Click Add contractor.
Once done, wait until your contractor accepts the invite and fills in the information needed to complete the setup. This will allow them to view their payments.
Another option, sign up for a separate Melio account for free to integrate with QBO to pay your 1099 contractors. The notification email they’ll receive when your payment is processed (if you choose to have them receive it) and what they’ll see when they receive your payment, whether it’s a paper check in the mail or a direct bank transfer. When you choose to send your 1099 contractors a check, they'll receive an email with all the payment details, where they can review and potentially edit their address, or choose to receive the payment via an ACH transfer instead.