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If you are paying contractors via direct deposit, the option to autopay them is unavailable in QuickBooks Online (QBO). What we can do is to pay contractors manually in the Contractors tab every bi-weekly schedule. Here's how:
- Go to the Payroll menu and select the Contractors tab.
- Next to the contractor’s name, choose the dropdown and then Pay with direct deposit.
- Enter the amount for the direct deposit.
- Select the expense account you use to track paychecks in QuickBooks. Note: This is the expense account on your chart of accounts where QuickBooks records the expense. It's not the bank account the payment debits from.
- Press Save & Send or Save & New.
This starts the direct deposit process and after the transmission finishes, you'll get a confirmation message. You can also use direct deposit to pay open bills with your contractors in QuickBooks and this is outside your payroll system. QBO tracks contractor payments for 1099- MISC reporting. To learn more about this one, see the Pay a contractor with direct deposit article.
If not, we can create a recurring payment to a contractor when we can automate a check or a bill. Let me show you how:
- Tap the Gear icon and choose Recurring Transactions below Lists.
- Click on New and choose either Bill or Check and then select OK.
- Create a Template name.
- Set Scheduled as the Type. This will create a series of transactions according to the schedule you set. When you choose to send it via email, it'll be sent automatically.
- Add all the necessary information.
- Select Save template once you're done.
You can check the Create recurring transactions in QuickBooks Online article for further guidance. To edit the scheduled transaction and check if it ran successfully, see the Check your scheduled transactions article for more details. If you are using Online Bill Pay, we can also set schedule payments in QB. Just follow the steps and details in the Learn about QuickBooks Bill Pay for QuickBooks Online article.
Feel free to visit our Expenses and vendors page for more insights about managing your vendor transactions.
I'm just one post away if you need a hand with running vendor reports or any QuickBooks-related. I'll be here to ensure your success. Have a great day.
