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