How to Set up Direct Deposit for Contractors in Quickbooks Desktop
As a contractor, getting paid on time is crucial to your success. One of the most convenient ways to receive your payments is through direct deposit. QuickBooks Desktop is an effective tool for managing your finances, including setting up direct deposit for contractors. Here are the steps to follow if you want to set up direct deposit for contractors in QuickBooks Desktop:
Step 1: Get a Direct Deposit Authorization Form
The first thing you need to do is to get a direct deposit authorization form. You may request that from your client, or you can create one yourself. To do that:
– Go to the QuickBooks Desktop homepage and select the “Payroll” tab.
– Click on “Direct Deposit” and then “Get Started”.
– Select “Use Our Direct Deposit Form” and choose your payment method.
– Follow the instructions to complete the form.
Step 2: Add the Contractor to QuickBooks Desktop
After obtaining the direct deposit authorization form, you must add the contractor to QuickBooks Desktop. To do this:
– Go to the “Lists” menu and select “Employee Center”.
– Click on the “New Employee” tab.
– Enter the contractor’s name and contact information.
– Select “Other Payroll Items” and add the contractor’s direct deposit information.
Step 3: Set up Direct Deposit for the Contractor
Once you have added the contractor, you can set up direct deposit for them by following these steps:
– Go to the “Employees” menu and select “Pay Employees”.
– Choose the contractor’s name and click “Open Paycheck”.
– Select “Direct Deposit” from the “Pay Method” drop-down menu.
– Enter the contractor’s bank account information.
– Review and approve the direct deposit information.
Step 4: Confirm Direct Deposit Setup
After setting up direct deposit for the contractor, you must confirm that it has worked properly. To do that:
– Go to “Employees” and select “Payroll Center”.
– Click on the “Transactions” tab and select “Direct Deposit”.
– Confirm that the contractor’s name and information are correct.
– Verify that the direct deposit is scheduled for the correct date.
Conclusion
Setting up direct deposit for contractors in QuickBooks Desktop is a simple process that can save you time and make your financial management easier. By following these steps, you can ensure that your payments are received on time and that you can focus on the work you do best.