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Level 1

Pay contractors outside of Payroll module

I am new to QBO this year,  I have 6 contractors I would like to pay by direct deposit.  I was told I could do that without subscription to the Payroll module.  I setup the contractor profiles in the Payroll page under contractor.  But it did not give me the option to put in the contractor’s bank information.   Can someone please help?  Can I also use direct deposit to pay the  2 partners monthly distributions?  


Thank you

QuickBooks Team

Pay contractors outside of Payroll module

I appreciate you for using QuickBooks Online (QBO), @userhgalyon.


To pay your contractors through direct deposit (DD), you’ll need an active payroll subscription with intuit. Then you‘ll need to set up your company for DD so you'll be able to enter their bank information. Let me guide you how.


  1. Go to the Payroll menu.
  2. Click Employees.
  3. Select the employee's name.
  4. Click the Edit (pencil) icon next to Pay.
  5. Under How do you want to pay this employee? section, select how the employee wants to receive their pay.
    • Direct deposit
    • Direct deposit to two accounts
    • Direct deposit with balance as a check
  6. Enter the routing and account numbers from the employee's voided check and select Done.


You can also see the QuickBooks Online Payroll section in this link for more details: Set up your company payroll for direct deposit.


Once done, you can now set up your contractor and pay them through direct deposit.


In regards to paying your two (2) partners monthly distribution, you can add them as a vendor to your account so you can pay them through DD. You can also work with your accountant for further advice on the best action to take. If you’re not affiliated with one, you can visit our ProAdvisor page and look for one from there.


Let me also share this article that you can read for your future reference. This can guide you in confidently filing your 1099 in the future: Create and file 1099s using QuickBooks Online.


You can always tag me in your reply if there’s anything else you need help in setting up your contractor or with managing your account. I’ll be around to listen and back you up. Take care and keep safe. 

Fiat Lux - ASIA
Level 15

Pay contractors outside of Payroll module


You may utilize these apps to pay your contractors and integrate it with your QBO.





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