How to setup and pay independent contractors through Quickbooks Online?

Afaik, you need to have a payroll module to do so. You may utilize a 3rd party free app to pay your 1099 contractors and integrate it with your QBO as a workaround.

Thanks for posting to our care, @soban-maamawi-ca.

When paying independent contractors through QuickBooks Online (QBO), it will require a payroll account. That said, you can track 1099 when you set up the contractor's direct deposit (DD).
 

You'll need to set up your company bank account first to use payroll DD. Then you can add and set up your independent contractor bank account information.

Here's how:

1. Sign in to QuickBooks Online.
2. From the left panel, select the Payroll menu and then go to the Contractors tab.
3. Click Add a contractor.
4. Select Bank account.
5. As prompted, enter the following:
   *Account Number
   *Account Type
   *Routing Number
   *Account holder Phone Number
   *Account holder Full Name
6. Hit Save.

You can also email your contractor to fill out their information. Here's a 2-minute video for visual reference:

Once done with the setup, you can now pay a contractor with a direct deposit.

On the other hand, you can consider Fiat Lux - ASIA's recommendation if you decide to use a third-party application to pay independent contractors and integrate it into QuickBooks.

I'm always here to back you up if you have other concerns with setting up your independent contractor and paying them through QBO. Anytime I can assist. Have a nice day ahead!