I have a question on paying contractors online. Why is there an $8 fee to pay contractors electronically, but no fee to pay vendors?

Hi JasperContracting,

We only collect a fee if you process a direct deposit payment for contractors. We don't offer this service to vendors. However, you can use a bill pay service that is powered by Melio, our partner app for processing vendor payments.

On the other hand, yes, you're right that only if they get a 1099 form they are contractors. You can refer to this article: Independent Contractor Defined.

Let me know if you have any other concerns. Have a good one!

@JasperContracting 

Open a seperate Melio account for free to manage and pay your 1099 contractors for free and integrate it with QBO.

https://melio.grsm.io/pricing