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GoodJuju85
Level 3

Can we pay a 1099 employee using direct deposit?

Is there a way to pay a 1099 employee using direct deposit?

Solved
Best answer September 17, 2021

Best Answers
Charies_M
Moderator

Can we pay a 1099 employee using direct deposit?

Good day, GoodJuju85.

 

I'd be happy to guide you through the steps on how to pay 1099 employees/contractors via direct deposit.

 

The first step is to set up your employee as a contractor for a direct deposit. I'll show you how to do it below:

  1. Open the Vendor Center.
  2. Double-click the vendor you wish add the direct deposit to.
  3. Select the Additional Info tab and select the Direct Deposit button.
  4. Choose the Use Direct Deposit for: [Vendor Name] box, and enter the bank info. Note: Split direct deposit payment isn't available for independent contractors.
  5. Click Send confirmation direct deposits to [email address] if you'd like a payment confirmation.

Here's an article for additional information on how to set up direct deposit: Set up and manage direct deposit for your contractors.

 

Then, make sure your company’s payroll is set up for direct deposit payments.

 

Once done, you can now pay your 1099 contractors using a direct deposit. Follow the steps for your reference:

  1. Go to the Banking menu and select Write Checks to start the direct deposit.
  2. Fill in the necessary information.
  3. Make sure the Pay Online checkbox is checked. Note: If you’ve entered bank account information for your contractor, QuickBooks select the Online Payment checkbox box.
  4. Click Save & Close. This opens the Confirmation and Next Steps window.
  5. Select Send to Intuit to open the Send/Receive window. Note: If you close the window on accident, go to the Employees menu and select Send Payroll Data.
  6. Click Send and enter your direct deposit PIN.

For more details about the process of paying contractors using direct deposit, kindly check out this article. (Follow the steps for the payroll product you use.): Pay a contractor with direct deposit.

 

In case you want to print 1099 forms, feel free to visit this link: How do I print my 1099 forms?

 

You can always get back to us if you have other concerns or questions managing direct deposit. The Community is always here to help you. Have a great day!

View solution in original post

5 Comments 5
Charies_M
Moderator

Can we pay a 1099 employee using direct deposit?

Good day, GoodJuju85.

 

I'd be happy to guide you through the steps on how to pay 1099 employees/contractors via direct deposit.

 

The first step is to set up your employee as a contractor for a direct deposit. I'll show you how to do it below:

  1. Open the Vendor Center.
  2. Double-click the vendor you wish add the direct deposit to.
  3. Select the Additional Info tab and select the Direct Deposit button.
  4. Choose the Use Direct Deposit for: [Vendor Name] box, and enter the bank info. Note: Split direct deposit payment isn't available for independent contractors.
  5. Click Send confirmation direct deposits to [email address] if you'd like a payment confirmation.

Here's an article for additional information on how to set up direct deposit: Set up and manage direct deposit for your contractors.

 

Then, make sure your company’s payroll is set up for direct deposit payments.

 

Once done, you can now pay your 1099 contractors using a direct deposit. Follow the steps for your reference:

  1. Go to the Banking menu and select Write Checks to start the direct deposit.
  2. Fill in the necessary information.
  3. Make sure the Pay Online checkbox is checked. Note: If you’ve entered bank account information for your contractor, QuickBooks select the Online Payment checkbox box.
  4. Click Save & Close. This opens the Confirmation and Next Steps window.
  5. Select Send to Intuit to open the Send/Receive window. Note: If you close the window on accident, go to the Employees menu and select Send Payroll Data.
  6. Click Send and enter your direct deposit PIN.

For more details about the process of paying contractors using direct deposit, kindly check out this article. (Follow the steps for the payroll product you use.): Pay a contractor with direct deposit.

 

In case you want to print 1099 forms, feel free to visit this link: How do I print my 1099 forms?

 

You can always get back to us if you have other concerns or questions managing direct deposit. The Community is always here to help you. Have a great day!

GoodJuju85
Level 3

Can we pay a 1099 employee using direct deposit?

Thank you so much for your help. This was really helpful!

LiquidBeauty
Level 1

Can we pay a 1099 employee using direct deposit?

Does it cost more if I pay the direct deposit to 1099 employee biweekly vs monthly?

AMAjr
Level 1

Can we pay a 1099 employee using direct deposit?

Are the vendors/contractors paid via ACH or direct deposit included in 1099 reporting? I know credit cards are excluded.

Rose-A
Moderator

Can we pay a 1099 employee using direct deposit?

Good to hear from you today, AMAjr.

 

Yes, you're right. All payments made via credit card, debit card, and third-party system, such as PayPal, are excluded in the 1099-MISC and 1099-NEC calculations. This is due to the fact that the financial institution reports these payments so you do not have to.

 

Cash, ACH, or other direct payments, on the other hand, should be reported on Form 1099.

 

We can get more details about this in the following article: Understand which payments are excluded from a 1099-NEC and 1099-MISC. Also, we can find other links on what certain payments should be reported in the 1099-K form.

 

Additionally, we can go through this write-up: How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing. This will provide us with more details about the 1099-NEC filing as well as the steps on how to move the payments to the new account.

 

Please keep in touch with me here should you need further assistance. The Community and I always have your back.

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