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Level 1

QuickBooks won't accept contractors banking information. Its an actual bank.

Why won't QuickBooks accept contractor banking information. It has been triple check and I have to use a 3rd party tool to pay them.
1 Comment
QuickBooks Team

QuickBooks won't accept contractors banking information. Its an actual bank.

Hello there, @whitmore-dr.


QuickBooks Online won't accept the banking information of your contractor if the direct deposit is not yet activated. You can activate the direct deposit by following the steps below:


  1. Go to Workers from the left menu.
  2. Select Contractors.
  3. You’ll see a banner that reads “Pay contractors with direct deposit”.
  4. Click the Check it out button.
  5. Click on Turn on Direct Deposit.
  6. After that, you need to activate your direct deposit by clicking the Get started button.
  7. Click Set up direct deposit.
  8. Choose the Add bank hyperlink to enter your banking credentials.
  9. After entering bank information, a test transaction must be entered to verify the bank account on file. No need for bank verification if you bank with one of our eight partners listed in the Enroll in direct deposit article.


Once done, you can invite your contractor to provide their W-9 business and make sure that they input the correct bank information.


For more details, you can click this article and choose QuickBooks Online: Set up and manage your direct deposit for contractors.


However, if you already set up a direct deposit and the issue persists, I'd suggest contacting our Customer Support Team. They can further investigate why QuickBooks don't accept your contractor's banking information. You can reach them through the contact information found in this link: Contact the QuickBooks Online Customer Support team.



I'm adding these articles that will guide you in paying contractor with direct deposit, how to file 1099 for your contractors and it's troubleshooting steps:



 I'll be happy to help you further or if you have any other questions about QuickBooks. Have a great day ahead. 


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