Pay a Contractor with Direct Deposits
Electronic payment from one bank account to another is termed as Direct Deposit. For instance, funds might transfer directly from the account of an employer to that of an employee, even though there would be different other means for using direct deposit. The Automated Clearing House (ACH) network used by banks for such transfers manages the payments among various financial institutions.
Therefore, it will easier for employers to pay a contractor with direct deposits. Such payments can very well be managed by the user’s bookkeeping software or latest payroll provider. However, it might incur a little higher cost. All that is required is a bank account connected to fund direct deposit. If the bank is not linked with the online payroll the following steps will guide.
The foremost step would be to create the contractor’s profile:
- Users need to look for the Workers tab and select Contractors.
- Click on Add a contractor for creating profile for a new contractor. In case an existing contractor needs to be edited, select it.
- Click on Bank Account.
- Bank details need to be filled like Account number, Account type, Routing number, Phone number of Account holder and Full name of Account holder.
- Select Save and click.
Once the contractor profile is created, the next step towards paying a contractor with direct debit would be setting his account for direct deposit. For this:
- Workers or Employees tab should be selected.
- Next, would be choosing the contractor’s name.
- Clicking on Edit, and once again in the Pay method section once again Edit.
- Direct Deposit should be selected in the Pay method section.
- If the contractors bank account details are not entered then enter it.
- Select OK and click on it.
The last and final process would be making a payment to the contractor through direct deposit. Nevertheless, if users find it confusing or get stuck at any point then it is advisable to call the QuickBooks Support service. There they will be assisted by experienced and knowledgeable technicians and provide 24/7 assistance. Users can clear their doubts and solve their queries over the call or through chat processes.