Hello Miriam,

I read about those fees before, but today the system was just telling me 4.00 per month, and only if I use it. I just did not know if it means one 4.00 a month if I issue one or as many payments by direct deposit to contractors a month? 

Ok great thank you for the info.

Hello Beau,

Ok thank you for the info. I was hoping it was 4.00 a month for unlimited DD payments. Well now I know. 

Am I charged if I have a contractor set as "active" but have direct deposit turned off? Additionally, are there any fees for having Quickbooks complete 1099s?

Hello, @will972.

Thank you for laying out the details of your concerns. I'm here to address your issues one at a time.

To answer your first question, you'll only be charged if you have made a direct deposit payment to your contractor. If you're still charged even if you didn't run a direct deposit, you can contact our QuickBooks Online Payroll Support team for assistance.

The per-contractor, per-month fee is the same as the per-active employee fee in your QBO subscription. We can issue as many direct deposit payments to a contractor as needed with this flat fee.

Regarding your second question, yes, customers are billed for 1099 e-filing at the following rates. For your guide, you can review this article for more insights about creating and filing 1099s: Create and file 1099s with QuickBooks Online.

As always, you can visit our site whenever you need some helpful references in the future: Help articles for QuickBooks Payroll.

Should you have other questions about the direct deposit for your contractor? Please let us know. The Community always has your back. Have a great day. 

Thank you but I'm not sure I understand the difference between these two. They seem contradicting. In the first, you mention I will only be charged if I pay the contractor but in the second you state that I would be billed each month per active contractor. 

"To answer your first question, you'll only be charged if you have made a direct deposit payment to your contractor. If you're still charged even if you didn't run a direct deposit, you can contact our QuickBooks Online Payroll Support team for assistance.

The per-contractor, per-month fee is the same as the per-active employee fee in your QBO subscription. We can issue as many direct deposit payments to a contractor as needed with this flat fee."

Thanks for the prompt response, Will972. 

Allow me to share clarifications to make things clear out for you.

To make everything clear and concise, whether or not you choose to pay them via direct deposit payments, you'll be charged monthly fees for each active vendor.

You can visit these links to learn more about how to manage direct deposits and pay them to your contractors:

• Set up and manage direct deposits for your contractors.
• Pay a contractor with direct deposit.

Furthermore, you can always visit this page if you require helpful resources when using QuickBooks: Help articles for QuickBooks Online Payroll.

Let us know in the comments below if you have any additional questions about direct deposits for your contractors. We'd be glad to assist you. Keep safe!

@beau rosarioExactly!  It used to be automatic so they surly have the capability.  It switched around a year ago... I first noticed when my bill was almost double one month.