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.
How to Set Up Vendor Direct Deposit in QuickBooks?
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.
QuickBooks Desktop Payroll Standard, Basic, and Enhanced
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.
- Click on the “Vendor Center” section.
- Then, click twice on the vendor name you want to add for sending the direct deposits.
- Now, click on the “Additional Info” tab.
- Here, you can choose the “Direct Deposit” option.
- At this point, you need to click on the “Use Direct Deposit for: [Name of the Vendor]” box.
- Then, add the details of the bank for that vendor.
Note: Remember that split direct deposit payments are not currently available for independent contractors.
- If you want to get the confirmation for the payment then hit the “Send confirmation direct deposits to [email address]” option. By doing so, you will get the confirmation via the specified email. Intuit will send the confirmation to the email address you added two days before the payment will reach the bank account. The email includes the following:
- The name of your company
- Payment amount
- Date of the payment. This date will be the date when the payment will reach the bank account of the vendor.
- Four digits pin of the contractor’s bank account number.
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.
- Once done, add the pin of your direct deposit and continue.
QuickBooks Desktop Payroll Assisted
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.
- Go to the “Vendor Center” option.
- Then, choose the vendor for whom you want to set up the direct deposit. To select the vendor name, make sure you click twice on the vendor’s name.
- Now, click on the “Additional Info” tab.
- Here, you can click on the “Direct Deposit” option.
- After this, add the “Direct Deposit PIN” in the required field.
- Once done, press the “Continue” button.
- Here, you are supposed to pursue the on-screen prompts until you view the “Confirmation” screen.
QuickBooks Online Payroll
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:
- Click on the “Payroll”.
- Select the “Contractors”. If it is a new contractor then click on the “Add a contractor”. You can choose the existing contractor as well.
- Now, click on the “Bank Account”.
- After that, you will have to enter the following details:
- Account Number
- Routing Number
- Account Type
- Account holder Full Name
- Phone Number of the Account Holder
- Once done entering all the details correctly, click the “Save” button.
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:
- How to Stop Direct Deposit in QuickBooks?
- What to Do QuickBooks Direct Deposit Didn’t Go Through?