Paying multiple 1099 contractors in Quickbooks Online

I've got a couple of suggestions so you can record the contractor's payments in advance, Aayush. I'll explain it further below.

You can use the Recurring Transaction feature in recording check payments in advance. This way, you don't have to enter the data at the last minute. Since you have multiple contractors, you can create several recurring check templates for each contractor and use them once you're ready to pay them. You can follow the steps outlined below for guidance:

1. Go to the Gear icon, then select Recurring Transactions.
2. Click the New button, choose Check on the Transaction Type dropdown, then hit OK. 
3. Enter the Template name, then select the Type either Scheduled, Reminder, or Unscheduled. You can also enter the number of days the transaction you create in advance.
4. Select a contractor on the Payee dropdown list and the Bank account you use to pay them.
5. Enter the remaining details in the fields provided.
6. Once done, click Save template.

On the other hand, if you use Direct deposit to pay your contractors, you can record the payment in advance. However, this will depend on the lead time. If you want to change the lead time to 5 days before the paycheck date, you can change it in the Payroll settings. 

You can visit this article for a detailed explanation about the direct deposit lead time and how to change it: When to send your direct deposit payroll.

To pay your contractors through Direct deposit, here's how:

1. Click Expenses, then select Contractors.
2. Select Pay contractors.
3. Double-check the Bank account you'll be paying from, and select the Pay date.
4. Find and select the contractor(s) you'd like to pay.
5. Choose Direct deposit as the payment method.
6. In the Account dropdown, select the expense category you use to track contractor payments. 
7. Enter the necessary payment info.
8. Select Preview Contractor Pay, then click Submit Contractor Pay.
9. Hit Done.

Here's the full article for a detailed process: Pay a contractor with direct deposit.

Furthermore, if there's information you'd like to change to the recurring templates, you can edit them easily with QuickBooks Online. 

I'll attach this reference as your guide when you encounter an error message about direct deposit limits when processing payroll: Get help if you’re over a direct deposit limit in QuickBooks Payroll.

Leave a comment below if you have further questions or concerns about paying your contractors in QuickBooks Online. I'll be sure to get back to you and lend you a hand. Have a great day ahead!

Thank You for your prompt reply Julia.

However, My doubts are still not cleared, let me explain.

For your information, the lead time is next day in my case. The pay date should be same for all the contractors & their pay varies in every pay date.

I need to manage payments for over 50 contractors on a biweekly basis, with each contractor receiving a different amount each pay period, some are paid by check and some by Direct Deposit. The pay for all the contractors should be processed every biweekly Monday i.e. on the same date for all of them.

My main concern revolves around the process of inputting all the contractors' pay data in advance whenever the data's are available, specifying their payment method (Direct Deposit or check), and saving it. And later process the payment for all the contractors at once on the pay date. Since, it will be a big hassle for me to input all the contractors pay data on the pay date itself, just before it's submission. How can I streamline this workflow effectively?

I was using some other payroll software previously where I was able to input the pay data for the contractors whenever required and save it; and later review & process the payroll of all the contractors at once during pay date with ease, I have just shifted to QuickBooks and I am not being able to do this. 

Hoping my query gets resolved at the earliest. Thanks.

Thanks for getting back, @aayush_rm. I appreciate the details!

Scheduling direct deposit payments for contractors in QBO is possible by submitting Direct Deposit checks on or before Friday since the paycheck date is Monday.

To pay your contractors, follow these steps: 

1. Go to Expenses and select Contractors. 
2. Then, click on Pay Contractors. 
3. Double-check the Bank account you will be paying from, and choose the Pay date. 
4. Select the contractor(s) that you want to pay. 
5. For the payment method, select Direct deposit. 
6. Choose the expense category you use to track contractor payments from the Account dropdown. If you are unsure, consult with your accountant. 
7. Enter the payment amount, description, and any other relevant payment information. 
8. Select Preview Contractor Pay, then click on Submit Contractor Pay. 
9. Finally, select Done.

I've also included an article here that guides you when you encounter an error message about direct deposit limits when processing payroll: Get help if you’re over a direct deposit limit in QuickBooks Payroll.

If you need help with paying your contractors in advance on QuickBooks Online, feel free to reach out. Have a great day!

I think you did not understand my query, I suggest you to go over my queries and provide me with a proper solution to it. Thanks.

I think you did not get my query, I suggest you to go over my concerns as mentioned above and provide me with a proper solution. Thank You!

We appreciate you for keeping us updated about your concern, @aayush_rm. Allow me to share steps that will help you schedule payments for your contractors in QuickBooks Online Payroll (QBOP).

Since we don't have a direct option to pay contractors via direct deposit or check to their specific payment schedule.

We acknowledge that every organization has special needs, and I understand how the feature you're searching for can be valuable for your business. Even though the option you're looking for is currently unavailable, I suggest providing feedback directly to our product engineers. This way, it'll enable us to improve the program's features.

Here's how:

1. Go to the Gear icon.
2. Hit Feedback.
3. Type in your recommendation in the Share your feedback field.
4. Click Next.

As a workaround, we can still create a bill pay for each of your contractors once you're ready to pay on the scheduled date. Please follow these steps to proceed:

1. Log in to your QBO account, and click on the + New icon.
2. Select Pay Bills transaction.
3. Check the box for the specific customer you may want to the scheduled date, then click Schedule payments to confirm.
4. From there, you'll route into the Pay Bills pricing page and select a plan that'll fit your needs.

After selecting the appropriate payment plan, you can proceed with the steps provided in this article: Schedule multiple bill payments.

Moreover, you can visit this article to learn how to manage your QuickBooks Online subscription, whether you need to update the card on file, change your subscription, or just view your billing history: Manage billing, payment, and subscription info in QuickBooks Online.

If you have any questions about paying your contractors in QuickBooks Online, please don't hesitate to leave a reply in the comment section. I'm more than willing to help you. Keep safe.