Direct Deposits are specifically used to pay employees, vendors, or 1099 independent contractors by the company. To pay your vendors, you are required to set up the direct deposits including the accurate details of your vendors. In case you have no clue, learn with us how to set up direct deposit for vendors in QuickBooks. Here, we will cover different variants of the QuickBooks program including Online and Desktop versions.
Through this guide, we will demonstrate how to set up direct deposit for vendors in QuickBooks Desktop Payroll Basic, Enhanced, Basic, Payroll Assisted, and QuickBooks Online Payroll.
Users should note that, in order to meet the requirements of Federal and State compliance across all the offerings, Intuit’s Direct Deposit cannot be used to make payments to those who are not independent contractors. If you are planning to set up direct deposit for vendors then make sure that you enter the correct details of a specific vendor. Entering the wrong details may get your direct deposit canceled.
Be it QuickBooks Online or Desktop, you can enter the vendor details. In the following guide, we will cover a number of QuickBooks variants such as QuickBooksDesktop Payroll Basic, Enhanced, Basic, Payroll Assisted, and QuickBooks Online Payroll. Let’s read more about how to set up direct deposit for vendors in QuickBooks Desktop and Online.
If you are using QuickBooks Desktop Basic, Standard, or Enhanced version, you can create the direct deposit for your vendor. All you have to do is choose the vendor and enter the details correctly.
Note: Remember that split direct deposit payments are not currently available for independent contractors.
Important Note: In case you don’t find the email address then make sure you check the email address if it needs to be updated.
QuickBooks Desktop Payroll Assisted users can also set up the vendor in their account. To proceed with this, you will have to select the relevant vendor, enter the required details and PIN to continue.
In QuickBooks Online Payroll, one has to connect a company bank account so that the direct deposit can be used. If you have not made the company payroll then set it up for the direct deposit. Thereafter, you can enter the bank account information of the contractors. For this process, you can connect with the contractor so that they can provide the bank account and W-9 business details.
After doing so, your contractors will need to create the QuickBooks Self-Employed account from where they can manage the profile and track the received payments. For better understanding, you can pursue the following steps:
By implementing these steps, you can easily set up the direct deposit for vendors and independent contractors in QuickBooks Online.
Direct Deposit is the smartest way to send payment through QuickBooks. It is a fast and convenient method to pay your employees and vendors. However, you need to set the direct deposit in your account to proceed with the payment. Here, we have shown you the whole procedure of how to set up direct deposit for vendors in QuickBooks Desktop and Online.
To know more about QuickBooks Direct Deposit, we suggest you read the following guides: