If a contractor is marked as “other” for payment method yet has been a direct deposit prior, are you charged for them that billing cycle?

Good day to you, Jim. Let me share the specifics to ensure you won't be charged for your contractors who aren't currently working.

In QuickBooks, you'll be charged a monthly fee for contractors with direct deposit turned on, even if you don't pay them during the month. Consequently, you can turn off the direct deposit for a specific pay. Simply follow these steps to proceed:

1. Go to the Payroll menu, then Contractors.
2. Next to the contractor’s name, select the dropdown to toggle the direct deposit off or on.

For more details about this process, please refer to this article: Set up and manage direct deposit for your contractors.

To ensure accurate record-keeping before filing 1099s, we recommend utilizing this article to establish and monitor contractor payments: Set up contractors and track them for 1099s. This will enable businesses to maintain precise records and fulfill regulatory requirements.

We're always open here in the Community, so don't hesitate to tap us if you have further questions regarding this matter. It's always my pleasure to help you out again. Have a great day ahead!