Companies are increasingly turning to external contractor support for many operational functions as payroll costs rise and global talent pools become increasingly accessible. For businesses using QuickBooks, a variety of self-service contractor payment options are available and can be optimized through third-party integrations. We'll take a quick look at pay contractors through QuickBooks, but in reality, the process couldn't be easier for even the least tech-savvy business owner.
Can I pay contractors with QuickBooks Online?
Of course! QuickBooks offers a variety of payment options for contractors, but the basic QuickBooks Online platform allows users to quickly pay contractors via direct deposit and check. Be sure to first create a vendor profile for the contractor if one doesn't already exist.
Supplier Profile in QuickBooks
The supplier profile will include basic administrative information such as name and address, banking information, and additional feeder data to help generate documents such as 1099s and ensure the contractor is paid promptly, accurately, and in compliance with applicable laws and regulations.
To do this in QuickBooks Online,
- Navigate to Bills and click Sellers.
- Inside the panel, click New seller and fill out the dropdown menu.
- After completing the basic details about the supplier, continue to fill out the financial and tax information of the supplier to make the transaction and fulfillment smooth.
- After completing all the details, press 'Save'
Pay contractors by check
Whether your contractor is local or prefers paper checks, doing so is easy in QuickBooks Online.
- To do this, you'll need to set your printing preferences so you can print on the check paper of your choice.
- Once you are ready, navigate to your Contractor panel and click the drop-down menu next to the contractor name; you will see write check as an option.
- From there, simply fill out the relevant banking information and check amount, then print it or save it for later.
Pay contractors via direct deposit
Paying contractors via direct deposit with QuickBooks Online is just as easy.
- Select the contractor in question from the Contractor panel and click Payment contractor – Direct deposit
- Validate that the information remains accurate.
- Complete your payment information before reviewing direct deposit, and then simply submit.
Paying Contractors with QuickBooks Payroll: The Basics
QuickBooks offers QuickBooks Payroll as an add-on to your existing QuickBooks Online account or as a standalone feature. QuickBooks Payroll offers two broad categories, payments to contractors and employees, with different levels in each.
The Contractor Payment Plan starts at $7.50 per month for up to 20 contractors ($2 after that) and is the basic plan that does not require an active QuickBooks plan.
The next level includes Simple start for $22.50 per month and basic QuickBooks Online features like income and expense tracking, receipt management, and invoicing.
Using QuickBooks Payroll to pay contractors is as simple as following the same steps detailed above. Still, it comes with additional benefits like generating 1099 forms to comply with regulations and self-guided contractor services to help your contractors get paid efficiently, quickly and accurately.
Pay Contractors with QuickBooks Payroll – Direct Deposit
To pay your contractors via direct deposit into QuickBooks Payroll, we will first navigate to the Contractors screen from the main Paysheet panel.
Remember, if you haven't already added your contractor and their relevant information to your QuickBooks account, you'll need to do so first.
- Once ready, select Pay contractors and validate the bank account with which you plan to pay. Don't skip this step!
- Next, you will choose the payment date, method, and category of expenses you want to pay the contractor on your books.
- If you have an existing open invoice with the contractor, QuickBooks Payroll will also ask if you want to enter a new expense or pay the current unpaid balance.
- Finally, enter and validate all administrative and payment data.
- Navigate to the Contractor Payment Preview for a final review and then click Deliver.
Pay contractors with QuickBooks Payroll: consult
As with direct deposit in QuickBooks Payroll, using a check to pay contractors in the system is simple; In fact, much simpler than having to balance the actual checkbook!
- Again, we will start at Contractors our main screen Paysheet panel.
- Also, enter the contractor's information if it is the first time you pay them;
- Otherwise, click the drop-down menu next to the contractor name and click Write check.
- Once you navigate to the check writing panel, choose the correct bank account from which the funds are withdrawn.
- Complete all required fields and place the print-ready check in your print queue or select Print later if you are simply preparing a check for future payments.
- If that is the case, simply Save and close The window: The check will populate in the contractor's profile from your account once you are ready to return to that particular payment.
Pay Contractors in QuickBooks with Nanogrid Integrations
Of course, third party integrations step in to help smooth out some of QuickBooks' rough edges and create a more streamlined experience for business owners and contractors alike. Taking advantage of nanonetworks accounts payable tools, you can easily and quickly manage contractor payments in QuickBooks. As the only 100% automated payment service, you will be able to:
Conclusion
Ultimately, QuickBooks offers a variety of options for paying contractors within the native platform, whether using basic QuickBooks Online or integrating QuickBooks Payroll to pay contractors. Likewise, advanced integration third party plugins like nanonetworks accounts payable tools can be of great help to streamline and optimize the strategy and planning of payments to your contractors.
If you are interested in speaking with our ai expert about how to supercharge your QuickBooks.
