As a business owner, you may find yourself hiring contractors for various projects. One important aspect of working with contractors is ensuring they are paid in a timely and efficient manner. Direct deposit is a popular option for paying contractors, and QuickBooks Online offers a simple way to set up and manage this payment method. Here’s how to pay contractors through direct deposit in QuickBooks Online:
Step 1: Set up the contractor as a vendor
The first step is to set up the contractor as a vendor in QuickBooks Online. To do this, go to the “Expenses” menu and select “Vendors”. Click on the “New vendor” button and enter the contractor’s information, including their name, address, and email address. You can also add any additional information, such as their tax ID number or payment terms.
Step 2: Set up direct deposit for the vendor
Once the contractor is set up as a vendor, you can set up direct deposit for them. Go to the “Expenses” menu and select “Pay Bills”. Select the contractor’s name from the list of vendors, and then click on the “Set up online payments” button.
From there, you can enter the contractor’s bank account information, including the routing number and account number. You can also select the payment frequency and the start date for the direct deposit payments.
Step 3: Approve and send the payment
Once you have set up direct deposit for the contractor, you can easily pay them through QuickBooks Online. Go to the “Expenses” menu and select “Pay Bills”. Select the contractor’s name from the list of vendors and enter the payment amount.
QuickBooks Online will automatically calculate any taxes or other fees, and you can review and approve the payment before sending it. Once the payment is approved, QuickBooks Online will send the payment to the contractor’s bank account through direct deposit.
In conclusion, paying contractors through direct deposit in QuickBooks Online is a simple and efficient way to manage payments. By following these three easy steps, you can set up and manage direct deposit for your contractors, ensuring they are paid on time and with minimal hassle.