Paying Vendors by Direct Deposit

Welcome to the Community, @SAustin.

I just got the information you need to set up vendors for Direct Deposit (DD) in QuickBooks Desktop (QBDT).

Before signing up for Intuit Direct Deposit service, make sure your vendor is a 1099 independent contractor and you have an active payroll subscription.

If you’re using QuickBooks Desktop Payroll Basic, Standard and Enhanced, direct deposit for paying employees must be active to activate paying 1099 vendors. 

Here’s how to sign up direct deposit for independent contractors:
1.    Go to Vendors from the top menu and open Vendor Center.
2.    Choose a vendor and double-click their name.
3.    On the Edit Vendor window, choose the Additional Info tab and select the Direct Deposit button.
4.    Once the Payroll Service Account Information opens, select the Activate link under Direct Deposit, next to 1099 Vendors for QuickBooks Desktop Basic, Standard and Enhanced. For QuickBooks Desktop Payroll Assisted, skip to the next step.
5.    Enter your Direct Deposit Pin and select Continue.
6.    Follow the onscreen instructions until you get to the Confirmation screen. 

Now, you’ll be able to start setting up your independent contractors for direct deposit. Make sure to collect their bank account information before paying vendors.

To add direct deposit information to your independent contractors follow the steps below:
1.    Go to Vendors from the top menu and open the Vendor Center.
2.    Choose a vendor and double-click their name.
3.    Select the Additional Info tab and click the Direct Deposit button.
4.    Choose the Use Direct Deposit for: [Vendor Name] box. Enter your vendor’s bank account information.
5.    Place a check mark on the box to select Send confirmation direct deposits to [email address] for Intuit to send an email confirming payment.
6.    When prompted, enter your direct deposit PIN.

For more information, check out this article: Manage direct deposit for independent contractors in QuickBooks Desktop Payroll. Screenshots are provided within the article.

If your vendor is not an independent contractor, you’ll need to sign up for QuickBooks Bill Pay as your payment service.

That's it. Please let me know if there's anything else I can do for you. I'll be here to help.  Wishing you and your business continued success!

Is it possible to set-up all vendors as 1099 vendors and use direct deposit instead of online billpay?

Thanks

Stan

Good day, orion678.

I'd be happy to help you set up and use direct deposit for your vendors in QuickBooks Desktop.

To answer your question, yes, you can set up all your vendors as 1099 and use direct deposit to pay them. You can follow the steps below to sign up your vendors for direct deposit.

1. Open the Vendor Center.
2. Select a vendor and double-click their name. The Edit Vendor window will open.
3. Choose the Additional Info tab and select the Direct Deposit button. This will open the Payroll Service Account Information page.
   
   
    
4. For QuickBooks Desktop Payroll Basic, Standard & Enhanced only: Under Direct Deposit, next to 1099 Vendors, select the Activate link. For QuickBooks Desktop Payroll Assisted, skip to the next step.
   
   
    
5. Enter your Direct Deposit PIN and select Continue.
   
   
    
6. Follow the onscreen instructions until you get to the Confirmation screen. Now you will be able to set up your independent contractors for direct deposit.<
   Continue below for steps adding direct deposit information to your independent contractors.

For detailed steps and instruction, check out this recommended article: Manage direct deposit for independent contractors in QuickBooks Desktop Payroll.

If you need more help in setting up and using direct deposit for your vendors, feel free to fill me in. I'm here to help you out.

What is the fee to pay vendors using direct deposit? I use QB Desktop and have a Basic Payroll subscription.

What is the fee to pay vendors using Direct Deposit? I have QuickBooks Desktop with a Basic Payroll subscription.

I can share some information about paying your vendors' direct deposit, @HLCLLC.

You must need to set up your contractor's direct deposit so you can direct deposit to pay vendors and 1099 independent contractors.

Here are the steps:

1. Set up direct deposit for your company. You'll need to have your business information, business bank account, and Principal officer information.
2. Connect your bank account from the Employees menu. Then, verify the bank account information.
3. Set up your contractor's direct deposit.

You can refer to the following article for detailed steps about setting up direct deposit for your company account and vendors:

• Set up your company payroll for direct deposit
• Set up and manage direct deposit for your contractors

Then, refer to the following reference on how to write a check to pay your contractors: Paying Independent Contractors using Direct Deposit.

To explain to you the fees that you'll be charged per transaction, I suggest reaching out to our Customer Support team. They can get into your account in a secure environment and verify this information. 

You can follow the steps below on how to reach them:

1. From your QuickBooks Desktop account, click the Help menu at the top.  
2. Click the QuickBooks Desktop Help menu and select QuickBooks Desktop Help.
3. Provide some information about this concern in the search box.
4. Click the Contact Us link at the bottom of the window. 
5. You'll now be provided with a few support options.  
6. Select Get a call to arrange a callback from a support agent. Or Start a chat to chat with them directly.  

Check this article for detailed guidance in reaching out to our Customer Support and our support hours: Contact QuickBooks Desktop support.

In case you'll encounter errors when processing these payments, here's how to resolve them: Error: The vendor payment transmission failed.

Let me know if you need further assistance managing your direct deposit transactions. I'm always here to help. Have a wonderful day!