Payments to contractors direct deposit feature question

Thanks for clarifying your concern on this forum, elcapital. I'll answer your questions one by one to address them properly.

Firstly, to ensure we're on the same page, could you specify which subscription you currently have? To verify you can check it on your Subscriptions and billing if it is for Contractor Payments or Payroll? Because the $6 charge is for per added employee/contractor specifically QuickBooks Payroll Core. You can also check out the plans & pricing page for Contractor Payments.

To address your first question, you'll not get a $6 charge as the direct deposit option is disabled.

Regarding your second question, you'll be charged since direct deposit is enabled.

For your third question, there is a monthly charge for each contractor with the direct deposit feature enabled, in addition to the subscription fee.

Meanwhile, if you have already disabled the direct deposit feature for your contractor but still notice charges, I recommend contacting our QuickBooks Live Support. They can securely access your account to investigate the issue further.

For more information on paying contractors via direct deposit, kindly visit: Pay a contractor with direct deposit.

Additionally, when it comes to printing 1099s in the future, please refer to the following comprehensive guide: Print your 1099 and 1096 forms.

I'm still ready to back you up if you need more help with payroll. I'll keep the thread open so you can comment back.

Hi, thanks for the reply.

I have the "Contractor Payments" for $15/month. (Only for contractors, no

employees)

Could you verify for me, what would be the fee for the direct deposit enabled, is it per direct deposit, or is it monthly per contractor?

thank you

@elcapital 

You should explore Melio Core at $22 per month as an alternative bill payment solution for your contractors and sync it with QB Online. It supports W-9 collection and 1099 automation. You can pay up to 20 free ACH/month regardless how many active or inactive contactors you have.

https://quickbooks.intuit.com/learn-support/global/manage-suppliers-and-expenses/pay-bills-online/01...

We appreciate the additional information you've provided, elcapital. Allow me to add details regarding the direct deposit for your contractors.

Since you are using QuickBooks Contractor Payments, there are no additional fees for each direct deposit you process. However, please note that your plan includes 20 contractors, and a fee of $2 will apply for each additional contractor.

For more details about your Contractor Payments subscription you can visit this page: QuickBooks Contractor Payments plans.

Streamline your payroll with our Payroll Services integrated with QuickBooks Contractor Payments! We ensure secure, timely payments for a hassle-free payroll experience!

Additionally, in QuickBooks Contractor Payments you can set up your contractors to automatically track your payments, which simplifies the preparation and filing of your 1099 forms. For further information, please see this article: Set up contractors and track them for 1099s.

We look forward to your response and are eager to assist with any additional questions you may have regarding the direct deposit fees for your contractor payments.

Just to confirm I have Quickbooks Online Simple Start ($35/month) + Contractor Payments ($15/month). I have attached a screenshot of the plan I currently have.

So if I am understanding correctly, the first 20 contractors with direct deposit enabled will be free? No matter how many Direct Deposits I make?

I am asking about as I called multiple times Quickbooks customer support, and was told I have to pay $6 per contractor per month for having Direct Deposit Enabled. 

thank you

Yes, elcapital. Processing direct deposits is free for your first 20 contractors. I'll share further information about this.

With your current Contractor Payments + Simple Start subscription, you're correct that the first 20 contractors with direct deposit enabled are processed for free, regardless of the number of direct deposits you make.

Here is a comparison between Contractor Payments + Simple Start and QuickBooks Payroll Core:

• Contractor Payments + Simple Start subscription, a $2 fee is applied per additional contractor.
• QuickBooks Payroll Core, a $6 fee per contractor is added.

You can visit our website for more info: Pay Independent Contractors with Direct Deposit | QuickBooks.

Moreover, I'd also suggest contacting our payroll live support team. While I understand you’ve reached out before, our live experts have the necessary resources and tools to view your account. They can provide detailed information on the charges you received.

I've included a few articles for you to refer to, which explain how to prepare and file your Federal and state 1099s, as well as answers to the most common 1099 questions:

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

I'm still willing to address any follow-up question you may have about managing your contractors. Just tag me in the comments below, and I'll make sure to assist you promptly.