Created with Sketch.Learn about PPP and Loan Forgiveness, stay informed with the latest changes.
Created with Sketch.Need help with 1099's or other Year End topics? Visit our Year End Resources page.
Created with Sketch.New to QuickBooks or using a new product? Visit our Get Started resource page to help you get going.
Created with Sketch.Need to make changes to your account? Visit the Account Manager Portal.
Showing results for 
Search instead for 
Did you mean: 

Paying Independent Contractors using Direct Deposit


Did you already sign up and set up your independent contractors for Direct Deposit? You must do that first before you can pay them with direct deposit.

Now, make sure you meet these requirements before paying your independent contractors through Direct Deposit:

This service is available only to payroll customers making payments to independent contractors and should not be used to pay bills or make any payments to individuals or entities other than independent contractors.

Once you have met these requirements, if you want to pay your independent contractors direct deposits through Write Checks, see below.


To pay an independent contractor using Direct Deposit:

  1. Choose Banking > Write Checks.
  2. Click the Bank Account drop-down arrow and select your checking account.
  3. Click the Pay to the Order of drop-down arrow and select the independent contractor.
  4. Enter the date that the independent contractor should be paid in Date.

    To pay by Direct Deposit the pay date must not be less than two business days in the future. If a date less than two business days is selected the check will automatically choose the next available date to pay via Direct Deposit.
  5. Enter the amount of the check in the $ field.
  6. Click the Expense tab and select the expense account.
  7. Verify Pay Online is checked.

    If bank account information has been added for a independent contractor selecting Write Checks will default to the check to Direct Deposit. If you do not want to send payment via Direct Deposit uncheck Online Payment.

  8. Click Save & Close.
  9. The Confirmation and Next Steps page will appear.

  10. Click the Send to Intuit to open the Send/Receive window.

    If Close is clicked you can return to the Send/Receive window clicking Employees > Send Payroll Data.
  11. Click Send and enter your Direct Deposit PIN.
  12. After the transmission is complete you will receive a confirmation message (if you are also sending payroll, you will receive 2 messages) and report.
  13. A check for each independent contractor paid and an additional check to QuickBooks Desktop Payroll Service fees will post to your bank register. The check will have an electronic payment symbol in the upper left corner and Direct Deposit written in the memo.

Need to void the independent contractor direct deposit you just sent?

You may be able to stop the debit. Locate the check in your register, then send the void information to Intuit using the Send Center. Once the void is sent, the liability check response will post in the memo of the check whether the funds were recovered (the funds will not be debited) or not recovered (the funds have been offloaded).

Was this helpful?

You must sign in to vote, reply, or post
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us