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Level 1

I pay employees using Quickbooks desktop with enhanced payroll but can i pay vendor or independent contractors

I need to pay a vendor just a few dollars but I don't have check, i heard i can do direct deposit via quickbooks. What is the best way of doing it and is there any extra charge?  The vendor has a personal account at chase, do i just get the vendor's account number and ach? Thanks

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Moderator

I pay employees using Quickbooks desktop with enhanced payroll but can i pay vendor or independent contractors

Hi there, @fds

 

Yes, you can pay a vendor through a direct deposit. This service is free for employees, however, there is an additional cost for 1099 contractors (vendors) with your subscription to Enhanced Payroll. Additionally, you'll only get billed the moment you process direct deposit checks in QuickBooks. Let me show you how to set up this feature. 

 

If you have the direct deposit activated for paying employees, you can activate it for paying 1099 vendors. If not, you must sign up for your company payroll for the service. After that, follow the steps below to activate it:

 

  1. From the Employees menu, select My Payroll Service, then click Account/Billing Information.
  2. Let the Admin (on the main Intuit Account) sign in. 
  3. Enter the direct deposit PIN when prompted.
  4. Go to the Payroll Details Section, then select Activate under the 1099 Vendor payment area.

Once done, add the vendor's direct deposit information. To do that, you need to notify him and collect his bank account details with the same sample form used for employees. After that, refer to the steps below to enter them in the vendor's profile: 

 

  1. Go to the Vendors menu, then select the Vendor Center.
  2. Double-click the vendor name.
  3. Select the Additional Info tab and click the Direct Deposit button.
  4. Mark the Use Direct Deposit for: [Vendor Name] checkbox.
  5. Select Send confirmation direct deposits to [email address] if you would like Intuit to send an email confirming the payment.
  6. Enter your direct deposit pin when prompted, then hit OK.

Finally, you can now pay your vendor using direct deposit. For the detailed steps of the process and how to correct it, I've attached some articles below for your reference: 

 

You must send direct deposit transactions to us by 5 PM PT two business banking days before the check date. This way, your vendor received it on time. 

 

Let me know if you have any other questions. I'll be happy to help you out. Have a great day ahead.

Highlighted
Level 1

I pay employees using Quickbooks desktop with enhanced payroll but can i pay vendor or independent contractors

How much does it cost and what if it is a one-time thing

And do they tell you the fee before the direct deposit gets processed?

Can we combine it together with our regular payroll processing

Highlighted
Moderator

I pay employees using Quickbooks desktop with enhanced payroll but can i pay vendor or independent contractors

I appreciate you getting back to us here in the Community, @fds.

 

To ensure you'll be billed the right fees when using the direct deposit for vendors, I suggest contacting our Payroll Support Team. One of them will need to take a look at your account and check the type of subscription you're using.

 

From there, they'll be able to confirm the actual charge for using the service. In case you need the steps on how to contact support, here's how:

 

  1. Open QuickBooks Desktop.
  2. Click the Help tab at the top menu bar and select QuickBooks Desktop Help.
  3. Select Contact Us

Check out the Manage direct deposit for independent contractors in QuickBooks Desktop Payroll article for more information about the feature. It provides some insights into the setup and how to get started.

 

Let me know if you have further questions or other concerns. Please know the Community has your back. I’ll be right here to assist further.

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