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Set up and manage your direct deposit for contractors

Learn how to set up direct deposit for contractors in QuickBooks Payroll.

With QuickBooks Payroll, you can use direct deposit to pay vendors and 1099 independent contractors. Before you can do that, you’ll need to set up your contractor's direct deposit.

If you're not sure if you have a 1099 contractor or employee, use this 1099 W2 Employee Calculator to find out.

Note: To meet Federal and State compliance requirements across all of our offerings, Intuit’s Direct Deposit service cannot be used to pay bills or make payments to individuals or entities who are not independent contractors.

Note: Not sure which payroll service you have? Here's how to find which payroll service you have.

Learn how to set up or edit direct deposit information for your contractors with:

  1. Open the Vendor Center.
  2. Select a vendor and double-click their name. The Edit Vendor window will open.
  3. Choose the Additional Info tab and select the Direct Deposit button. This will open the Payroll Service Account Information page.
  4. Enter your Direct Deposit PIN and select Continue.
  5. Follow the onscreen instructions until you get to the Confirmation screen. Now you will be able to set up your independent contractors for direct deposit.

  1. Make sure you have the latest version of QuickBooks Desktop.
  2. Open the Vendor Center.
  3. Double-click the vendor you want to add the direct deposit to.
  4. Choose the Additional Info tab and select the Direct Deposit button. Select the Use Direct Deposit for: [Vendor Name] box, and enter bank routing and account number, bank name, and account type. Split direct deposit payment is not available for independent contractors.
  5. Select Send confirmation direct deposits to [email address] if you would like Intuit to send an email confirming payment. Intuit will send an email to the email address entered, two days before payment will arrive in the independent contractor's bank account. Included in the email:
    • Your company name
    • The amount of payment
    • The date the payment will arrive in the independent contractor's bank account (the date shown on the independent contractor's check in the check register)
    • The last four digits of the independent contractor bank account numberNote: If you don’t see an email address or the email address is incorrect, you can add or update the email address by selecting the Address Info tab.
  6. Enter your direct deposit pin when prompted.

Note: If QuickBooks Desktop is rejecting the Bank Account information when entered, it is important to verify the bank account information.

You will need to have a bank account connected to fund direct deposit transactions. If you have not already done so, learn how to connect your bank to online payroll.

If you have not yet set up direct deposit for your contractors, you will need to select Check it out above the list of your contractors, then Turn on direct deposit to proceed with adding a bank account to a contractor's profile.

Note: You can invite your contractor to provide their W-9 business and bank account information to you. Your contractors will be invited to create a QuickBooks Self-Employed account, where they can manage their contractor profile and track payments received.

  1. Select the Payroll menu, then Contractors.
  2. For a new contractor, select Add a contractor or select the existing contractor to add or edit banking information.
  3. Select Bank account.
  4. As prompted, enter in the following banking info:
    • Account Number
    • Account Type
    • Routing Number
    • Accountholder Phone Number
    • Accountholder Full Name
  5. Select Save.

How do I remove a contractor’s direct deposit preferences?

You can permanently remove banking information from an independent contractor's profile.

  1. Select Vendors and choose Vendor Center.
  2. Double-click the name of the vendor whose profile you want to edit.
  3. Select Additional Info tab.
  4. Select Direct Deposit button.
  5. Select to clear the box Use Direct Deposit for: this vendor.

  1. Select the Payroll menu, then Contractors.
  2. Select the contractor you would like to edit.
  3. At the Pay with Direct Deposit dropdown, change your payment preferences.
  4. If you would like to also remove banking information select Bank account to edit.
  5. In the Account Number or Routing Number fields, enter in all zeros.
  6. Select Save.

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