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elcapital
April 21, 2025
Question

Payments to contractors direct deposit feature question

  • April 21, 2025
  • 1 reply
  • 0 views

I am new to QuickBooks Online, I signed up to Payments to Contractors for $15/month (includes up to 20 contractors).

 

I called multiple times payroll department, they stated that even if I turn off the direct deposit option for my contractor I will still get charge the $6/month. They stated the only way to avoid the $6/monthly is by marking the contractor as inactive.

 

1) Do I get charge the $6 if I for example, previously paid my contractor via direct deposit for several months, but then I decided to not use Direct Deposit anymore, and disable the option "Direct Deposit" via payroll menu?

2) Does having the green option for Direct Deposit enabled automatically charges the $6/month regardless if money is sent or not?

3) I want to verify, is it $6/month per contractor for using the Direct Deposit feature?

 

Thank you!

1 reply

E
EmanE17
April 22, 2025

Thanks for clarifying your concern on this forum, elcapital. I'll answer your questions one by one to address them properly.

 

Firstly, to ensure we're on the same page, could you specify which subscription you currently have? To verify you can check it on your Subscriptions and billing if it is for Contractor Payments or Payroll? Because the $6 charge is for per added employee/contractor specifically QuickBooks Payroll Core. You can also check out the plans & pricing page for Contractor Payments.

 

To address your first question, you'll not get a $6 charge as the direct deposit option is disabled.

 

Regarding your second question, you'll be charged since direct deposit is enabled.

 

For your third question, there is a monthly charge for each contractor with the direct deposit feature enabled, in addition to the subscription fee.

 

Meanwhile, if you have already disabled the direct deposit feature for your contractor but still notice charges, I recommend contacting our QuickBooks Live Support. They can securely access your account to investigate the issue further.

 

For more information on paying contractors via direct deposit, kindly visit: Pay a contractor with direct deposit.

 

Additionally, when it comes to printing 1099s in the future, please refer to the following comprehensive guide: Print your 1099 and 1096 forms.

 

I'm still ready to back you up if you need more help with payroll. I'll keep the thread open so you can comment back.

E
elcapitalAuthor
April 22, 2025

Hi, thanks for the reply.

 

I have the "Contractor Payments" for $15/month. (Only for contractors, no

employees)

 

Could you verify for me, what would be the fee for the direct deposit enabled, is it per direct deposit, or is it monthly per contractor?


thank you

C
Chrea
April 22, 2025

@elcapital 

You should explore Melio Core at $22 per month as an alternative bill payment solution for your contractors and sync it with QB Online. It supports W-9 collection and 1099 automation. You can pay up to 20 free ACH/month regardless how many active or inactive contactors you have.

https://quickbooks.intuit.com/learn-support/global/manage-suppliers-and-expenses/pay-bills-online/01/1351046

 

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