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FlowArt
Level 1

Can you use Payroll for independent contractors?

I got Quickbooks hoping I could use their payroll to pay my independent contractors, however, I'm stuck at the "Tell us about your team" setup task, it requires an employee but I don't employ anyone.  Because of this, I'm unable to sign my tax documents and use this system.

Can anyone give me any guidance on what to do?

2 Comments 2
Archie_B
QuickBooks Team

Can you use Payroll for independent contractors?

Hello there, FlowArt.

 

Yes, you can definitely pay your contractors through QuickBooks Online Payroll.

 

The payroll setup gives you the over all task needed to maximize your payroll service. If you don't have an employee, you can just skip that part of the task and start filling in your tax information.

 


Once done, you'll need to connect the company bank account which is required to use direct deposit to pay your independent contractors.

 

After that, you can start inviting your contractor to provide their W-9 business and bank account information. You can also follow these steps below to add those information in QuickBooks.

 

Here's how:

 

  1. Go to Payroll, then Contractors.
  2. For a new contractor, select Add a contractor or select the existing contractor to add or edit bank info.
  3. Click Bank account.
  4. As prompted, enter the following:

  • Account Number
  • Account Type
  • Routing Number
  • Account holder Phone Number
  • Account holder Full Name

  5.   Select Save.

 

 

I've also added this article for more in handling direct deposit for contractors: Set up and manage direct deposit for your contractors.

 

Get back to me if you still have other questions about payroll. I'm always here to help. Have a good one!

Fiat Lux - ASIA
Level 15

Can you use Payroll for independent contractors?

@FlowArt 

Another option, utilize a 3rd party app to pay your contractor for free. You don't need to have the payroll module.

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