How to Sign up and Set Up Direct Deposit for Independent Contractors


  • Direct Deposit for Vendors gives QuickBooks Desktop payroll customers the facility to send direct deposits to 1099 Independent Contractors.
  • In case you get an error sending payroll, read this tutorial if you receive this error while sending payroll. You will receive the error as the vendor payment transmission failed.


In this tutorial, you will learn the following:

  • The requirements for using Direct Deposit for Independent Contractors
  • Search for details about Independent Contractors from sources such as the IRS
  • How to turn on Direct Deposit for Independent Contractors in your QuickBooks Desktop]
  • Add direct deposit details to your Independent Contractors



If you want QuickBooks to meet State and Federal compliance requirements on a steady basis across all the offers, then you cannot use the Intuit Direct Deposit service to pay bills or make payments to individuals or entities who does not fall in the category of independent contractors.

Major Requirements

The following are the Requirements prior to logging into for Direct Deposit for Independent Contractors:

  • The vendor must be a 1099 independent contractor.
  • QuickBooks Desktop Payroll Basic, Standard & Enhanced customers must havethe current release of QuickBooks Desktop installed, and should sign up for the Direct Deposit service.
  • QuickBooks Desktop Payroll Assisted customers should have the current releaseof QuickBooks Desktop installed.


Read More:

  • Information about 1099 Independent Contractors
  • How to handle the error message of “Phone number and Email are not matched”?
  • How to add direct deposit information to your Independent Contractors.


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