Is there no Contractor Payments via Check Payment Service?

Yes, removing contractors and treating them as vendors will disable the 1099 tracking, consultant1027.

In QuickBooks Online, you can write a check and hand it over to your contractors. If you want to pay them electronically, you need to set up direct deposit (DD) payments.

After adding the contractor's profile in QuickBooks, you need to have a company bank account connected to use direct deposit. If you haven't done so, set up your company payroll for direct deposit.

Let me show you how:

1. Go to Taxes and select Payroll Tax.
2. Select Employee Setup.
3. When you reach Authorization for Direct Deposit, select Bank Verification.
4. Select View and print.

When you give us your initial bank account information, Intuit makes a small deposit into your account of less than $1.00. You can input that amount to authorize the account for payroll transactions. Learn how to verify test transactions for your account.

Once the DD is active, you can then pay contractors. Here are the steps you can follow:

1. Go to the Payroll menu, then select the Contractors tab.
2. Next to the contractor’s name, select the drop-down and then Pay with direct deposit.
3. Enter the amount for the direct deposit.
4. Select the expense account you use to track paychecks in QuickBooks. This is the expense account on your chart of accounts where QuickBooks records the expense. It's not the bank account the payment debits from.
5. Click Save & Send.

I'm adding these links for future reference:

• Pay a contractor with direct deposit
• How to set up contractors and track them for 1099s in QuickBooks.

Keep me posted if there's anything else I can do to help pay your contractors. I'm always right here to provide the steps.