Hello Michelle,
It's a pleasure to see you in Community. Welcome! I can understand the benefit of being able to pay your contractors with direct deposit in QuickBooks Online. However, this option isn't available in QuickBooks Online Payroll in Canada, at this time. I would be happy to show you an alternative method, so you can pay your contractors with confidence!
To get started, 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 an accounting professional. If you don't have an accountant, follow this link to locate a ProAdvisor in your area.
5. Choose the Supplier type (Individual or Business)
6. When finished, hit Save
Follow these steps to record your payment to the contractors;
1. From the left menu, open +New
2. Select Expense
3. Complete the required fields
Now that you've recorded the payment, you're ready to proceed with paying your contractors outside of QuickBooks.
If you would like to see the option to include contractors in QuickBooks Online Payroll, please feel free to submit a suggestion to our Development team. Proceed to your Settings ⚙, then select Feedback. Enter your product suggestions, then select Next to submit.
Please don't hesitate to reach back out with other questions. We're always glad to assist!
