Pay Your 1099 Contractors With Direct Deposit

As an Accounting software package, QuickBooks always make your work easier by coming up with new updates simultaneously. This time it comes up with a new payment method called “Direct Deposit”. So you do not have to worry to pay your 1099 contractors. But the condition is you should be a user of either QuickBooks Online Full-service Payroll or QuickBooks Online Payroll. You can also call us at our QuickBooks support to resolve all your related queries and also can save your time and effort.

You will see a tab named as “Workers” into QuickBooks Online in which you can seek for the 1099 Vendors. Also, you can add appropriate vendors to the list by finding them into your data. And then Vendor Details editing as 1099 qualified.

You will have to pay $2 for every Direct Deposit Contractor in that particular month. In which you will execute Direct Deposit contractor’s payment. But if the payment for Direct Deposit contractor is not executed by you, the amount $2 will not be charged for that respective month.

Related article: Cancel your Direct Deposit

Pay Contractors With Direct Deposit

Do not get hesitated of using Direct Deposit method. It is really very easy. All you have to do is to follow the steps as mentioned below.

  • From the Navigation bar, select Workers
  • In this step, click on the Contractors tab
  • Now choose the option Check it out
  • Once you have selected Check it out, it will ask you to Turn on direct deposit.
  • After turning on the direct deposit, please choose Pay with direct deposit
  • After clicking on Pay with direct deposit, you will see Direct Deposit Authorization form having several fields on it, like detailing bank account, and routing details that you have to send to the contractor.
    Fill Up all the details received from the contractor
  • After added your contractor’s bank details to Direct Deposit to QuickBooks Online, you can create a Check, a Bill or an Expense.
    Enter applicable transaction and it will get processed through direct deposit method.

I need to assist you, ensure that the account or the item is properly mapped. The one that you use to pay to your contractor at the end of your 1099 creation procedure. It is highly recommended that if you make a new item or an account to pay your contractors, you will automatically switch to the 1099 setup and add those new items or account to the 1099-mapped accounts.

How to Map 1099 accounts

  • From the Navigation bar, select Workers
  • In this step, click on the Contractors tab
  • Now click on Prepare 1099s
  • Click on the Continue your 1099s highlighted with green color.
  • After this, now select “Accounts” on Step 2, and then on the same page just at right, click on the Box 7 to check it. This box is non-employee compensation correct 1099 reporting box. Now select the appropriate accounts.

Conclusion

I guess several businesses that are service-based is going to be excited with this new update of the QuickBooks Online. Being ambulant is the considerable improvement of using the Direct Deposit as the contractors work frequently so they do not have to come to the office to get their money. Now the vendors can get paid easily on time by the businesses.



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