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T
travelqueen
December 13, 2024
Question

Need to Pay Customer for Funds Collected on their Behalf

  • December 13, 2024
  • 1 reply
  • 0 views

Hello,

 

I have QBO with Contractor Payments enabled.  I own a travel agency, and I collected funds (client's fee) on behalf of my clients from guests booked into their group to streamline the process.  Now it's time to pay my clients what's owed to them.

 

I want to ensure it is okay to set my client up as a Contractor and utilize the Contractor Payments feature.

 

I've already collected their W9 form, as the funds collected are not to be considered a profit to my business.  

 

I don't consider them a Vendor, as they did not supply goods or services to my company. Before I use a service such as Melio, I want to confirm whether Contractor Payments can be used.

 

Thank you to whoever responds! 

1 reply

J
JaneDave_I
December 13, 2024

I wish your travel agency continued success and prosperity, @travelqueen. I have the necessary details to help you clarify your inquiries about using the Contractor Payment features to streamline your configuration of direct deposits for your clients.

 

Yes, it's fine to list your clients as contractors in the Vendors section, as long as you're the one who's paying them. You can set up the Contractor Payments feature if you've ensured that you have their banking details, and then you're all set to handle the direct deposits.

 

Moreover, you can also utilize our QuickBooks Bill Pay feature as another way of our payment method.   

 

For more detailed information about the Contractor Payments feature, along with other steps in setting up your clients, you can read this article:

Pay a contactor with direct deposit.

 

In addition, you can refer to this article if you're planning to delete or void unprocessed direct deposit payments or non-direct deposit payments from the feature:

Void or cancel contractor payments.

 

We value your support in exploring the features of QuickBooks as a part of your day-to-day transactions between you and your clients in your business. Please know that you can Reply on this thread if you have additional inquiries about the Contactor Payments Feature. We're always one click away from you.

    T
    travelqueenAuthor
    December 13, 2024

    Thank you so much @JaneDave_I! 

     

    I appreciate your well wishes for my business, I'm truly grateful!  This was the solution I was hoping for, so thanks for taking the time to respond.

     

    Unfortunately, I didn't qualify for Quickbooks Bill Pay.  Not sure why, so I'll just focus on adding them as a Contractor.

     

    Thank you again for the quick reply as it allows me to move forward this evening!

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