Help with unable to process a payment to contractor? Message read: We are unable to process your payment of $ to __by direct deposit. Not sure why??

I appreciate the details you've included in your post, summ356.

In QuickBooks Online (QBO), there's a limit on how much money you send via direct deposit processing payments. If your direct deposit amount is higher than usual, you'll get an error message.

Limits are set per payroll which means that the total amount of direct deposits for all your contractors paid in a 6-day period including weekends from the date of payroll submission.

To see the limit of your direct deposits, you can see it in your payroll settings.

Here's how:

1. On the upper right corner, look for the Gear icon.
2. Select Payroll settings.
3. Scroll to the Direct deposit section so that you'll see your limits per payroll.

Once reached, you can request a direct deposit limit increase. I'd be glad to show you how:

1. Go to the Gear icon, then payroll settings.
2. From the Direct deposit, select Edit.
3. Select Request limit increase.
4. Enter the amount you need and type of increase.
5. Click Done.
6. Hit Save, then Done.

If you're going to pay your contractors today, you can give paper checks to them as an alternative. Ensure to turn off direct deposit first when running a payroll.

Lastly, you can browse through this article in case you need assistance printing paychecks or stubs in QuickBooks Online Payroll: Print or reprint paychecks and pay stubs.

Let us know if you still have further queries about deposits and other payroll matters in QuickBooks Online. We're always here to assist you 24/7. Stay safe.

@summ356 

You can signup for a free Melio account and use it as the backup to pay your 1099 contractors.

https://affiliates.meliopayments.com/quickbooks

You can also get a cashback to pay the first bill. Make sure to to click the Get $100 cashback button to signup.

https://affiliates.meliopayments.com/cashback