direct deposit for contractor

If your contractor is set up in the Payroll Section "Contractor tab" then you should be able to go into the contractor name, go to "Payments" and change the payment method.  It updates for all future payments.  

The only other reason it may not work is if you do not have your company bank account verified to pay with this option.  Normally takes 3-5 days to get verified. 

Welcome to QuickBooks, your new financial assistant! I'm here to help you switch a contractor from check payment to direct deposit in QuickBooks Online Payroll (QBOP).

Before you can start paying contractors, you need to have a bank account connected to enable direct deposit. If you haven't linked your bank to the online payroll system, this article will help you with that. The first step is to set up the contractor's profile.

Step 2: Add your contractor's bank account info

You can invite your contractor to provide their W-9 business and bank account information to you.  Or follow the steps below to add the account info yourself. Be sure to double-check the bank account with your contractor.

1. At the left navigation panel choose Payroll, then click Contractors.
2. Select the contractor you wish to switch to direct deposit.
3. Choose a Bank account.
4. As prompted, enter the following:
   • Account Number
   • Account Type
   • Routing Number
   • Account holders Phone Number
   • Account holder Full Name
5. Then select Save.

Once done, let's set a contractor up for the direct deposit.

1. Go to Payroll menu.
2. Select the name of the contractor.
3. Click Edit, then select edit again in the Pay method field.
4. In the pay method field, choose Direct Deposit.
5. Enter the contractor's bank account information if it hasn't been entered already.
6. Click OK.

Furthermore, I'm sharing this information on how to use DD for contractors in QuickBooks Online: Set up and manage direct deposit for your contractors.

You can also check these articles to learn how to prepare and file your Federal 1099s with QuickBooks Online: 

• Create and file 1099s with QuickBooks Online
• Get answers to your 1099 questions.

Reach out to me if you have additional questions about managing your contractor's direct deposit. Please know I’m just a comment away for help. Have a great rest of your day.