How can I make a direct deposit to a vendor who is not a contractor?

Thanks for reaching out to the Community, @lindab2810.

To keep the direct deposit for the vendor or contractor in QuickBooks Online, the 1099 form is required along with their banking information to complete their profile. You're not required to file 1099 for these people unless they meet the $600 threshold. I've provided steps below on how to add a contractor:

1. Go to the Workers tab in the left-hand menu, then Contractors.
2. Press on Add a contractor.
3. Enter the contractor's name.
4. (Optional) Enter the contractor's Email if you have checked the box that invites a contractor to add their own 1099 tax info.
5. Click Add a contractor.
6. Hit Add.
7. Choose whether the contractor is an individual or a business, then enter their information.
8. Select Save and close.

After completing their profile, then you can pay them with a direct deposit. Here's how to set it up:

1. Go to the Workers tab in the left-hand menu, then Contractors.
2. Next to the contractor’s name, select the drop-down, and then Pay with direct deposit.
3. Enter the amount for the direct deposit.
4. Select the expense account you use to track paychecks in QuickBooks.
5. Hit Save & Send.

That's all there is to it! Furthermore, here are a few Community articles that you may find useful:

• Set up contractor with direct deposit
• What is a 1099 and do I need to file one
• Prepare and file 1099s using QuickBooks Online

If you have any additional questions or concerns, please don't hesitate and reach back out! Have a beautiful day.

Can I pay a vendor or subcontractor with Direct Deposit if they do NOT require a 1099 due to their business structure?

Thanks for reaching out to us, mtshoberg.

To pay contractors by direct deposit, their profiles must be set up and tracked for 1099s. QuickBooks tracks all their related payments so when you need to file their 1099s, you already have all their info.

Since your vendor has different business structure, you'll want to use the Online Bill Pay to pay them. Feel free to follow the steps in this article to register: Sign up for Online Bill Pay.

Once you're all set up and ready, you can now pay your vendor bills online. Here's how:

1. Click the + New button.
2. Select Pay Bills Online.
3. Tick the checkbox on the bills you want to pay, then click Next.
4. Review the payment info. If you need to make any updates, select Edit details.
5. Hit Submit payment to send your scheduled payments.

To learn more about how Online Bill Pay works, I recommend visiting our FAQ page.

Keep me posted if you have any other concerns or follow-up questions. We're always here to help.

@mtshoberg 

Other options to pay your vendors and contractors

https://melio.grsm.io/quickbooks

https://veem.grsm.io/domestic