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junegerhardt
August 30, 2023
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No option to pay 1099 contractor by direct deposit, the option is not available in the vendor Info

  • August 30, 2023
  • 1 reply
  • 0 views

I am trying to set up 1099 contractors to be paid by direct deposit. When I go into the contractor/Vendor and click additional Info there is no direct deposit button. When I go to pay vendors tab the only drop-down options are check and credit card. I already have direct deposit set up for employees. I am using Quickbooks Desktop Pro 2021. Any suggestions? Thank you in advance. 

Screenshot attached. 

 

Best answer by MadelynC

I am hoping you can help again. 🙂 I opened another business so I have opened a new company file. I am having the same problem as I did before and followed the instructions you gave me but it did not fix it in the new company file. Any other suggestions? 


I know other troubleshooting steps so you can pay your contractor through direct deposit, @junegerhardt.

 

Since the provided solutions didn’t work in your new company file, you can update your QuickBooks Desktop to the latest release to get it fixed. This process can help optimize your system and improve features. Additionally, updating is necessary to successfully pay your contractors.

 

Here’s how:

 

  1. Go to the Help menu and select Update QuickBooks Desktop.
  2. Click Update Now, then select the Reset Update checkbox.
  3. Select Get Updates after.
  4. Close and reopen QuickBooks to install the update.

 

If the issue persists, you can reach out to our payroll support team to investigate it further. Our representatives can provide additional solutions to ensure the said option is accessible.

 

When everything is good, you can start paying your contractors using direct deposit in the program.

 

If you're interested in learning more about 1099 forms, the state's requirements for filing, and ways to prepare them, check out the resources below:

 

 

You can add comments below if you have other payroll questions or concerns. The Community team is always here to help, @junegerhardt.

1 reply

BigRedConsulting
BigRedConsulting
August 30, 2023

I think you have to sign up for the service that allows you to pay vendors via ACH before you can see the options you mention. Have you done that?

    J
    junegerhardtAuthor
    August 30, 2023

    I signed up for direct deposit payroll and it said I could pay contactors and employees. I followed the directions but do not have the direct deposit button to click on in the vendors menu. 

    F
    FateCandylaneT
    August 30, 2023

    We recognize the need to pay vendor's 1099s with direct deposits on time, junegerhardt. I've come to help you keep going when paying contractors in your account.

     

    When completing payroll tasks in QuickBooks Desktop, unusual behaviors like this may happen at any time and might cause data damage to your company file. To help us identify and ensure the direct deposit option is visible, we can run the Verify Rebuild Data tool. Beforehand, it's crucial to create a backup of your file and ensure that QuickBooks Desktop is running the latest version. This guarantees that you're benefiting from the most recent enhancements and bug fixes available. To do this:

     

    1. On the top menu, click File and select Utilities.
    2. Click on Verify Data.
    3. Select OK when QuickBooks doesn't detect any problem with your data.
    4. If verify finds an issue with your data, you'll be prompted to Rebuild Now or View Errors.
    5. Click Close or View Errors and take note of the specific error message.

     

    Then, here's how to rebuild data:

     

    1. On the top menu, click File and choose Utilities.
    2. Click OK if you receive a prompt to back up your company file.
    3. Select OK when the rebuild is complete.
    4. You can run the Rebuild Data again to ensure there's no error.

     

    You may visit this reference for more detailed information on managing fixes to your files: Fix data damage on your QuickBooks Desktop company file.

     

    Also, if you haven't yet, you may take into consideration the information shared by BigRedConsulting, you'll want to ensure you've set up Contractor Payments to enable you to manage vendor payments efficiently. 

     

    Furthermore, I'm sharing this guide to help you comply and file federal 1099s electronically or manually to the IRS: Create and file 1099s with QuickBooks Desktop.

     

    We'll be available anytime in this thread if you require additional assistance managing and paying your contractors. You can always leave a reply below, and we'll be sure to help you further. Keep safe!

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