How to pay contractors using direct deposit? I've looked up how to pay a contractor in Quickbooks but I don't seem to have the option under payroll. I'm in Canada.

Hi mira_lutsky-iclo,

It's nice to see you in Community.  Welcome!  QuickBooks Online Payroll enables you to pay your staff with direct deposit.  However, this option currently isn't available in Canada, for paying contractors.  You'll need to set up the contractors as suppliers.  Here's how:

1. Open Expenses, then Suppliers

2. Click on New supplier

3. Enter the required fields

4. In the Additional info section, select Tracking for T4A or T5018

Note:  If you're not sure what form they should receive, consult with your accountant.  If you don't have one follow this link to locate a ProAdvisor in your area.

5. Choose the Supplier type (Individual or Business)

6. When finished, hit Save

You're ready to record your payment to the contractors by going to +New in the left menu and select Expense or Cheque.  You can select Direct Debit as the Payment method using the ▼ dropdown menu.  Now that you've recorded the payment, you're ready to proceed with paying your contractors outside of QuickBooks.

Please don't hesitate to reach back out with other questions.  We're always glad to assist!

Thank you Trish!

can you direct deposit contractors within quickbooks?

Hi mira_lutsky-iclo,

The option to pay your contractors with direct deposit within QuickBooks is currently not available.  I recommend submitting a suggestion to our Development team by boing to your Settings ⚙, then select Feedback.  Customer recommendations are greatly appreciated in assisting us with improving your overall customer experience with QuickBooks Online.

Don't hesitate to post again if you have other questions.  We're here for you!

Can you set up a contractor as an employee instead, but make them exempt from all taxes? I noticed that you can choose those selections when setting up payroll.

Thanks.

Hey there, BrentSo. Thanks for chiming in on this thread.  I recommend taking a look at this article which will provide detailed information that i feel you'd benefit from. 

If you require further assistance, I suggest reaching out to an accounting professional. Having an accountant can be beneficial for you and your business. You can add your accountant to your books by following the steps listed here. If you don't have an accountant, you can find one who has experience using QuickBooks near you by clicking here.

Feel free to reach back out if you have any other questions. 

Hi Amanda-B,

It is a company/contractor that we are paying. They don't work for us and we pay them the same monthly amount plus taxes for services they provide us (they do invoice us). We'd just like to set it up so they get paid on a regular basis instead of manually paying through our bank website or using Interac eTransfers.

Thanks.

Thanks for getting back to me here, BrentSo. At this time, this isn't an option that QuickBooks offers.