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June 21, 2024
Question

Am I able to put in what I pay my 1099 contractors without it being deducted from my Quickbooks checking because I pay them through my LLC account.

  • June 21, 2024
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1 reply

AlverMarkT
June 21, 2024

Hi, Anthony. Warm greetings.

 

Yes, you can pay your 1099 contractors through your LLC bank account instead of your QuickBooks Checking. However, this will depend on which service you use to pay your contractors. I'd be glad to help you in accomplishing this in QuickBooks Online.

 

If you pay your 1099 contractors via Direct Deposit (DD) using Contractor Payments or QuickBooks Online (QBO) Payroll service, consider changing the company's bank account for payroll to have the funds deducted from your LLC account instead. This will involve setting up a new account in your Chart of Accounts. Here's how:

 

  1. Go to the Gear icon in your QBO account. Then, Chart of accounts.
  2. Select New to create a new account.
  3. In the Account Type dropdown menu choose Bank.
  4. In the Detail Type dropdown, select the type of bank account.
  5. Give your new account a name. You can use the info under the detail type to add a name that fits.
  6. In the When you want to start tracking your finances from this account in QuickBooks dropdown, select a time period.
  7. Enter the balance of the account for the date you choose.
  8. When done, hit Save and Close.

 

You can then refer to steps 3 to 6 of this article to change your payroll bank account: Change your payroll bank account.

 

However, if you use QuickBooks Bill Pay to pay your contractors, refer to the Schedule a bill payment with QuickBooks Bill Pay section of this article for the steps in adding your LLC bank account and use it to pay your contractors: Learn about QuickBooks Bill Pay for QuickBooks Online.

 

In QBO, you can email receipts and the software automatically creates a transaction for you to review. As a future reference, let me add this article to learn more about this: Email receipts and bills to QuickBooks Online.

 

We'll be here in the Community if you have further questions about changing your bank account to pay your contractors in QBO. We'll do our best to assist. Take care!