Welcome and thanks for joining us here in the Community. I'm here to share some information about paying a subcontractor via wire transfer/direct deposit in QuickBooks Online (QBO).
Yes! In QBO, you can pay a subcontractor or vendor via wire transfer or direct deposit depending on what you prefer. If you wish to pay them via wire transfer, you need to sign up for Online Bill Pay to activate this feature in QBO. On the other hand, for the Direct Deposit, you will need to subscribe to an online payroll service (QuickBooks Online Payroll or QuickBooks Full Service Payroll) to use this feature.
There are two different methods to set up a vendor for wire (bank) transfers. The first one is to invite the vendor to create a free account to receive payment. Here's how:
1. Log into your QBO account, then click the Plus icon at the top. 2. Pick Pay Bills Online, then choose the Bill Pay Online dashboard widget. 3. To set up a vendor with open bills, select Set up Bank Transfers within the same line as the Payee. a. Select Invite vendor to receive bank transfers, then Next. b. Enter the Vendor's email address if not populated already. c. Customize the Message to the vendor by clicking the Edit icon, if applicable. d. Click Send Invite.
I hired a subcontractor. The subcontractor filled out her profile via the link. How do I pay the subcontractor?
The cost of the direct deposit for contractor per month is the same as the per active employee fee per month. The exact fee depends on your QuickBooks Online Payroll subscription. With that said, you can make multiple direct deposit payments to a contractor in a month with a flat fee. You can visit this link to see the exact fee per employee per month: https://quickbooks.intuit.com/payroll/pricing/.