While we announced last month when Intuit first introduced it, we wanted to make sure all our readers were aware that QuickBooks now is offering a new online service for small businesses that need to pay third-party contractors—and report those payments at the end of the year.
The service is a way to quickly pay contractors with a next-day direct deposit while staying ready for tax time reporting. In addition, it allows small businesses to file 1099 reports, even if they do not use QuickBooks Online accounting.
Source: Adapted from the Intuit QuickBooks Contractor Payments Website.
With QuickBooks Contractor Pay, a small business can:
- Make unlimited payments to their third-party contractor via next-day direct deposit.1 Optionally, those payments automatically can sync with QuickBooks Online, so the small businesses' books stay up-to-date.
- QuickBooks Contractor Pay is easy to use. The small business invites its contractors to set up a free account to complete their W-9 information and provide their bank deposit details. If the contractor is part of the QuickBooks ecosystem, many of these details can be automatically validated from the contractor's QuickBooks.
- When the end of the year arrives, the small business is tax-time ready. QuickBooks Contractor Pay will complete the 1099s so they can be e-filed with the IRS, and each contractor can be sent a copy for their records.2
Source: Adapted from the Intuit QuickBooks Contractor Payments Website.
While the standard retail pricing for this new offering is very reasonable, there are current promotional discounts available through Intuit that can be made available through a ProAdvisors' Preferred Pricing.
ProAdvisors should check their client subscription options for pricing information on this new product availability. Intuit discount pricing is available from the website link below.
Image adapted from QuickBooks Online Accountant Client Subscription Feature
See the official Intuit website for more information, pricing and current promotions associated with QuickBooks Contractor Payments. Read the complete "Important offers, pricing details, and disclaimers," which are subject to change without notice, located at the bottom of the official Intuit website, before making any purchasing decision.
Footnotes and Disclosures:
1 - Next-day direct deposit: Deposits processed before 5 PM PT the day before shall arrive the next business day (excluding weekends and holidays). Requires setup of direct deposit and bank verification. May be subject to eligibility criteria. Deposit delays may occur because of third-party delays, risk reviews, or issues beyond Intuit's control.
2- Automated 1099 e-file and delivery: Prepare your 1099s at no extra charge. If you choose the 1099 E-File Service, Intuit will e-file your Federal 1099 information with the IRS and then print and mail a copy directly to your contractors; fees apply. As part of the paid 1099 E-File Service, Intuit will give your contractors online access to their 1099s. State filing not included. You should check with your state agency on any state filing requirements.
Materials within this feature, including graphic illustrations, were developed from Intuit QuickBooks (QuickBooks Contractor Payments) website content. All such source materials were adapted by Insightful Accountant solely for educational purposes.
As used herein, QuickBooks, QuickBooks Online (QBO), and QuickBooks Contractor Payments (Contractor Pay) refer to one or more registered trademarks of Intuit Inc.; a NASDAQ publicly traded "INTU" corporation, headquartered in Mountain View, California (USA).
Any or all other trade names used herein, including any other vendor (app/software) products discussed within this article, may be registered, trademarked or otherwise held by their respective owners and are hereby acknowledged. They have been referenced for informational and educational purposes only.
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