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Level 1

Setting up direct deposit for Subs failed

I just set up 1099's as vendors. I went to the additional info tab in the employee record and there is no direct deposit from the drop down menu. There's only a vendor type drop down. I must be missing a step. Can you help?

9 Comments 9

Setting up direct deposit for Subs failed

You need to set up your company for direct deposit, 2325gilf.


The first step you need to take is to connect your bank account. Make sure to open QuickBooks and sign in with the QuickBooks admin username and password.


Here's how:


  1. Go to Employees, and My Payroll Service, then Activate Direct Deposit.
  2. Select Get Started
  3. Click Start on the Business tab and fill in the info, then Next.
  4. Fill in the Principal officer info, then Next.
  5. Click  Add new bank account.
  6. Enter the name of your bank and then enter your online bank credentials or if prompted, your bank routing and account numbers.
  7. Create a PIN. You’ll use this when sending your payroll to us each time. Confirm your PIN twice, then select Submit.
  8. Select Next, then Accept and Submit.
  9. If prompted, confirm the Principal officer’s full social security number, click Submit.


Next, verify and check your bank account in 2 business days for a small debit amount of less than $1 from Intuit QuickBooks Payroll.


  1. Once you see the amount, open QuickBooks and sign in as the QuickBooks Admin.
  2. Select Employees, and My Payroll Service, then select Activate Direct Deposit.
  3. Sign in to your Intuit Account.
  4. Enter the debit amount twice, then select Verify.
  5. Enter your payroll PIN. Select Submit, then Ok.


Lastly, you can set up the contractor's direct deposit. Check out this article as a guide: Set up and manage direct deposit for your contractors. Then, choose QuickBooks Desktop Payroll Basic, Standard, and Enhanced.


You can then pay vendors via direct deposit. I'm adding these articles to guide you through the process.



Get back to me if you have additional questions about setting up direct deposit. I'm always glad to help you.

Level 1

Setting up direct deposit for Subs failed

I set up direct deposit under the employee's menu. Under the vendor name I chose additional info and there is no drop down for direct deposit. I ran the updates after the dd was activated. Still now direct deposit under add'l info. 

QuickBooks Team

Setting up direct deposit for Subs failed

Welcome back, @2325gilf.


I appreciate updating your QuickBooks Desktop to fix the issue. Let's perform other troubleshooting steps to show the Direct Deposit option in the Additional Info tab.


One of the possible reasons why some options in QuickBooks Desktop are missing is due to data damage to your company file. To get this resolved, let's run the Verify and Rebuild Utility tools. This will help fix data damage on your company file. Here's how: 


  1. Go to the File menu, then select Utilities.
  2. Click Verify Data and select OK to close all windows.
  3. Then, go back to the File menu.
  4. Select Rebuild Data under Utilities.
  5. QuickBooks will ask you to make a backup before rebuilding your company file, select OK.
  6. Once the rebuild is done, click OK.


After the steps, go back and verify if the Direct Deposit option is showing. If the issue persists, feel free to check out this article for more troubleshooting steps: Fix data damage on your QuickBooks Desktop company file.


Once you're able to set up direct deposit for your vendors, you can now pay them through direct deposit.


It’s nice to work with you, @2325gilf. Feel free to leave a comment below if you need further assistance setting up direct deposits for your vendors. I'm always around if you need any help.

Level 1

Setting up direct deposit for Subs failed

Because I'm using vendors now and not employees is there something else I need to do within the program to "activate" direct deposit for vendors? I tried all your suggestions with no luck. I'll take a look at the link you sent me. Thank you for your quick reply.


Setting up direct deposit for Subs failed

I can provide the steps on how to activate direct deposit for vendors, 2325gilf.


You need to go through the Vendor center and set up a direct deposit from the vendor's profile.


Here are the steps you can follow.


  1. Go to Vendors and choose Vendor Center.
  2. Double-click the vendor you wish to add the direct deposit to.
  3. Proceed to the Additional Info tab and click the Direct Deposit button.
  4. Mark  the Use Direct Deposit for: [Vendor Name] box, and enter the bank info.
  5. Select Send confirmation direct deposits to [email address] if you'd like a payment confirmation.
  6. Enter your direct deposit pin when prompted.

We'll send an email to the email address entered two days before payment will arrive in the independent contractor's bank account. Included in the email:


  • Your company name
  • The amount of payment
  • The date the payment will arrive in the independent contractor's bank account (the date shown on the independent contractor's check in the check register)
  • The last four digits of the independent contractor bank account number. 


If you don’t see an email address or the email address is incorrect, you can add or update the email address by selecting the Address Info tab.


You're now ready to pay vendor using direct deposit. Here's a guide for you: Pay bills for vendors through Direct Deposit.


Don't hesitate to post again or leave a comment below if need anything else. I'm always around to help you pay vendors using direct deposit.

Level 1

Setting up direct deposit for Subs failed

In my initial question I mentioned I had activated the direct deposit but it's still not showing under additional info. There is no drop down menu at all. I've verified data and rebuilt data, shut down computer, etc. 


Setting up direct deposit for Subs failed

Thanks for getting back to us, 2325gilf.


Looks like you've already performed the basic troubleshooting steps to fix this direct deposit issue. Know the steps shared by the previous representatives above to successfully set up direct deposit information for your vendors.


Here's how:

  1. Click Help at the top menu and select QuickBooks Desktop Help.
  2. In the Have a Question? window, enter a topic.
  3. Click Contact Us.
  4. Hit the Stat Messaging button.
    QBDT ChatSupport.PNG

Please take note our operating hours for chat support depend on the version of QuickBooks that you're using. Please see this article for more details: Support hours and types.


For a complete guide on how to set up direct deposit, kindly refer to the following articles:

If you encounter errors when submitting direct deposit payroll, you can check out these links for future use:

Be sure to get back to me if you have additional queries about managing direct deposits. I'll be around to answer them for you. Have a good one.

Level 1

Setting up direct deposit for Subs failed

I posted that I had figured it out. After activating direct deposit there is a record under vendors that says "quickbooks payroll services". That's the final step and then the drop down menu to set up direct deposit shows for each vendor :-)


Setting up direct deposit for Subs failed

Thanks for sharing the final step @2325gilf.


We appreciate you taking the time to circle back and let us know. 


Feel free to drop in any time you have a question or would like to share tips and tricks that work for you. We appreciate you being part of the Community.


Have a great day!

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