Hi there, @hopeatmiraclehou.
I'll guide you through the process of paying your contractors electronically.
Before you can pay your contractor, you'll need the following:
- Payroll product (QuickBooks Online Payroll or Contractor Payments)
- Your company's bank details.
- Your contractor's direct deposit info.
I recommend subscribing to QuickBooks Contractor Payments, so you can pay contractors with next-day direct deposit. Then, you'll need to set up your contractor's profile. Afterward, add your company's bank details and your contractor's deposit details.
Now, you're ready to send a director deposit to your contractor. I'll list down the steps for you.
- On the left navigation panel, go to Expenses.
- On the Contractors tab, click Pay contractors.
- Ensure you've chosen the right Bank account you'll be paying from. Then, select the Pay date.
- Find and select the contractor you'd like to pay.
- Select Direct deposit for the Pay method.
- From the Account dropdown, select an expense category to track contractor payments.
- Enter the necessary payment info including the amount and description.
- Click Preview contractor pay. Then, Submit contractor pay.
- Hit Done.
If you're unsure of which expense account to use, I suggest checking in with your accountant to ensure your records are accurate. If you don't have one, you can use our tool to find a nearby professional.
I'll leave this article for more info on paying contractors: Pay a contractor with direct deposit.
For future use, check out this article about frequently asked questions about 1099: Get answers to your 1099 questions.
Please let me know if you need any further assistance paying your contractor electronically, I'll be around to lend a hand. Keep safe.
