Can you pay a contractor through Quickbooks ?

You may need to have the QuickBooks Payroll to pay your contractors. Another option, utilize one of these free apps to pay your bills including to your contractors.

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Yes, you can, @mrsheathersmall.

In addition to Fiat Lux - ASIA, you can add your contractor to your QuickBooks Online (QBO) account and pay them through direct deposit (DD). To do this, you'll need a payroll subscription. 

Once you have signed up for our payroll, you can now add your contractor from the Payroll or Expenses menu. Let me show you how.

From the Payroll menu:

1. Go to the Payroll menu and select the Contractors tab.
2. Select Add a contractor.
3. Enter the contractor's name. (Optional) Enter the contractor's Email if you have checked the box that invites a contractor to add their own 1099 tax info.
4. Select Add a contractor.
5. Click Add from the Personal details section.
6. Enter the needed details and click Save .

From the Expenses menu:

1. Go to the Expenses menu then select the Vendors tab.
2. Click New vendor.
3. Enter the information needed, then check the box for Track payments for 1099.
4. Then click Save and close.

Once done, you can now set up your company for DD and pay your contractor whenever you're ready. For guidance, feel free to check out this link: Pay a contractor with direct deposit.

Furthermore, I'm adding this article that can guide you in efficiently filling your 1099s: Create and file 1099s using QuickBooks Online.

In case you need more help paying your contractors or with your QBO account, you can always tag me in your response. I'm always here more than happy to help you anytime. Have a good one and always stay healthy!

Hello mrsheathersmall!

I like to add that if you don't have a payroll subscription to process a direct deposit, you can pay your 1099 contractors through bank transfer (ACH) or paper check using Online Bill Pay. This service is powered by Bill.com, a trusted Intuit partner.

The service doesn't have a separate subscription fee, but you will be charged each time you process a payment. The fees will be shown as you go through the sign-up process and when making a payment. More information can be found in this article: What is Online Bill Pay?

Please don't forget to check out the hyperlinked topics in the Learn more about Online Bill Pay section at the bottom part of the mentioned article. They talk about the signup, vendor or contractor's setup, and payment processes.

On the other hand, we launched a new product on August 15, 2022, called Contractor Payments. It's a standalone product. Therefore, you can pay and generate 1099s for your contractors even if you don't have a QBO or payroll subscription.

The QuickBooks Team is always available for any additional questions you may have about paying your contractors in QBO. Take care and have a good one!

Hi JessT, I successfully did this a couple of weeks ago, but am now unable to. The only thing I can imagine that changed is that I set up the Bill.com integration with QBO. Does doing that break the Online Bill Pay functionality? If I break the Bill.com connection, will I get it back? 

@JessT I was able to successfully use Online Bill Pay to pay my contractors as you described two weeks ago, but am now unable. See the screenshot below.

Any recommendations?

@adrian_coyne 

Try opening your QBO account on any private/incognito browser.