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To Know How Contractor Direct Deposit in QuickBooks

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Answering the frequently asked questions about contractor direct deposit in QuickBooks Online, Payroll and QuickBooks Full Service Payroll.

Customers will be able to pay contractors via direct deposit if they have an active payroll subscription.

What’s new?

· Good news—You can now select a future payment date in QuickBooks Online Payroll, avoiding the need to log in on specific dates, reducing missed payments.

Here’s how

To schedule a contractor payment on a future date:

1.      Select Workers, then Contractors.

2.      Choose contractor’s name, then select Pay with direct deposit.

3.      On the Contractor payment window, complete the normal payment flow, and then select your preferred pay date from the calendar.

·         Also, you will now be able to pay your contractors fast and on time with 24-hour direct deposit. N=below lies the lead time to guide you on scheduling your pay date.

QuickBooks Full Service Payroll: Same day processing, given that all direct deposit payrolls are submitted and approved before 7:00 AM PT Friday (assuming Friday is the payday). QuickBooks Online Payroll: 24-hour direct deposit, given that all direct deposit payrolls are submitted before 5:00 PM PT, 1 banking day before the pay date.

Accessibility

Does having a QuickBooks Online account will enable me to use this feature?

No, you will need to subscribe to QuickBooks Online Payroll (any version) to use this feature.

Important: If you have inactive W-2 employees or no employees at all, you still need to have a subscription to pay contractors with direct deposit.

 Can a different funding bank account be setup to pay contractors?

 No, you can only use one bank account for all direct deposit transactions.

I have a payroll subscription but it’s not active for direct deposit. Will I need to turn it on first?

Yes, before using this feature, you will need to complete the direct deposit setup.

Where will I be able to view my transactions?

  1. Select Expenses> Expenses.
  2. Select the transaction that you want to view.

How to print a pay stub after paying contractors using direct deposit?

  1. Select Expenses > Vendors.
  2. Select the contractor/vendor that you want to view.
  3. Under the Transaction No field, select the transaction that displays DD.

Important: We do NOT support direct deposit deductions for contractors such as deduction for cash repayment.

Billing

What is the cost of this feature?

On top of your monthly payroll subscription, an additional charge will be added to your billing. This per-contractor, per month fee is the same as the per active employee fee in your QuickBooks Online Payroll subscription. You’re able to issue as many direct deposit payments to a contractor as needed with just this flat fee.

For not to getting charged will I have to switch the contractor status to inactive

No, our system will be able to identify if you have run a direct deposit payment for that contractor.

 I created a contractor direct deposit but deleted it. Will I be charged for the deleted transaction?

No, you will only be charged if you have run direct deposit payments for you contractors.

What if I’m still charged even if I did not run direct deposit payment for that contractor?

Check out our support hours and contact us using our Call me back feature.

 If a client is on our wholesale billing, can they activate direct deposit? And charge it to my account without my involvement?

That is a possibility. Please be sure to evaluate this feature with your clients. Confirm if they are interested in using it before incurring any fees.

Timing and process

Can I void the contractor direct deposit?

  • No, if the payment has been processed.
  • Yes, if the payment is still pending.

 If the contractor direct deposit is already processed, how do I void it?

You need to create a journal entry to void this transaction.

When will the money be taken out of my funding bank account?

The funds will be debited out of your bank account on your scheduled pay date.

If you date your pay checks for… Send payroll by 5:00 PM PT on… Your account will be debited on… Contractors get paid on (Direct Deposit only)…
Friday Thursday Friday Friday
Monday Friday Monday Monday
Tuesday Monday Tuesday Tuesday
Wednesday Tuesday Wednesday Wednesday
Thursday Wednesday Thursday Thursday

Important: For QuickBooks Online Payroll Full Service, direct deposit payrolls can be submitted and approved up until 7:00 AM PT Friday (assuming Friday is the payday).

When will contractors see the funds in their account?

Contractor direct deposit is scheduled to post on the pay date.

QuickBooks Online Payroll Full Service, QuickBooks Online Payroll Premium and QuickBooks Online Payroll Elite: Same day processing, given that all direct deposit payrolls are submitted and approved before 7:00 AM PT Friday (assuming Friday is the payday) QuickBooks Online Payroll Enhanced and QuickBooks Online Payroll Core: 24-hour direct deposit, given that all direct deposit payrolls are submitted before 5:00 PM PT, 1 banking day before the pay date.

 Do customers and contractors receive direct deposit payment email confirmation

Yes, customers and contractors receive email confirmation when:

  • Direct deposit payment is scheduled and settled
  • Intuit fails to debit from funding account (Customer only)
  • Intuit fails to credit to posting account (Customer only)

Are we allowed to resend the email confirmation?

Contact customer support for assistance.

Will there be an indicator showing the payment was processed through direct deposit?

Yes, the Transaction No field will display DD on the expense record, if the transaction was made via direct deposit.

Can the mobile app be used in creating a contractor direct deposit?

No, at this time you must be using a desktop browser with QuickBooks Online to create contractor direct deposits.

NEW! Can I schedule a contractor direct deposit on a future date?

Absolutely! This is an enhancement that can help you plan ahead and schedule payment dates up to 90 days in advance.

Accounting

Will the entry be duplicated with the bank download?

When a contractor is paid it will reflect in the check register. When downloading transactions from your bank, we will attempt to match the transaction. There remains the possibility that if it is not matched, duplication could occur.

 Can I assign a project, class or customer when paying a contractor?

Yes. You can now assign a class and a customer or project when creating a contractor direct deposit.

When assigning a project, enter the project name in the customer field.

https://www.quickbooksupport.net/

If I have been emailed an invoice by the contractor, how should I correlate the invoice to the payment?

At this point we do not support file attachments for direct deposit payments. In the future, we will work on the ability for employers to attach an invoice to a payment record.

 Can I use products and services, then assign to a job? 

At this time we do not support this capability in contractor direct deposit.

How to apply a direct deposit expense to a vendor bill?

  1. Select Expenses> Vendors.
  2. Select a vendor and the desired direct deposit expense from the Transaction List.
  3. Under Add to Expense, select

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https://www.quickbooksupport.net/           6. The customer’s open balance will be reduced.

  1. Add the amount of the DD expense and select Save.
  2. Review the changes in Amount to Applyand Amount to Credit. Then Save and close.
  3. The customer’s open balance will be reduced.

Setup 

 I want to activate direct deposit. Where do I enter my funding bank account information?

You have two options to add your funding bank account information:

Option 1 – Through employee setup

See Enroll in direct deposit (DD) for more details.

Option 2 – Through contractor setup

  1. Select Workers> Contractors.
  2. Under the price select Get Started.
  3. Select Set up direct deposit.
  4. Select Add bank. Enter your banking credentials or bank account information.
  5. After entering bank information, a test transaction must be entered to verify bank account on file. If a bank account was connected with your banking credentials, you will notsee this prompt.

https://www.quickbooksupport.net/

Can contractors enter their own bank information? How?

Yes. See the steps here for assistance.

How do I change a contractor’s bank account?

  1. Select Workers > Contractors.
  2. Choose the contractor’s name.
  3. In the contractor’s profile, select Change bankunder Payment details.
  4. After updating the bank information select save.

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How do I set up my contractors for direct deposit payment?

  1. Select Workers> Contractors.
  2. Choose the contractor’s name. Note: The drop-down for Pay with direct depositwill show if bank account is already added to contractor’s profile.
  3. Select Add Bank.

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  1. Enter contractor’s bank account information, then choose Save.

How do I create a contractor direct deposit payment?

  1. Select Workers>
  2. Choose Write checkfrom the drop-down on the contractor’s name that you would like to pay, and then select Pay by Direct deposit. Note: If you have already setup for direct deposit, Pay by direct deposit will be your default option.
  3. Enter the needed information, and then select a Categoryfor the payment.
  4. Select a Corresponding account in QuickBooks.

Important: This is the account inside your chart of accounts that this transaction will post to. Not the account we will debit from. This account must be classified as a Checking account in QuickBooks Online.

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  1. Select Paybeside the total amount.
  2. A confirmation message will pop up, then select yes, let’s proceedto confirm payment.
  3. Contractor payment details will show, and then select Close.

Yet, are you confronting any issues in performing the steps mentioned above or the means don’t appear to be clear for you at that point contact our QuickBooks Customer Support Phone Number agent or you may even send us an email at support@quickbookssupport.net

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