Tips and recommendations 

Can you do direct deposit for contractors?

Leia Doyle

Can you do direct deposit for contractors?

Yes, you can require an independent contractor, direct employee, or any other type of employee to use direct deposit in place of a check. In fact, in some states, receiving direct deposits can be included as a condition of employment.

How do independent contractors set up direct deposit?

To pay an independent contractor using Direct Deposit:

  1. Choose Banking > Write Checks.
  2. Click the Bank Account drop-down arrow and select your checking account.
  3. Click the Pay to the Order of drop-down arrow and select the independent contractor.
  4. Enter the date that the independent contractor should be paid in Date.

Can I pay contractors with cash App?

Using free apps like Venmo, the Cash App, Zelle or others is not the best way to pay contractors for their services they are providing your small business. First of all, you definitely DO NOT want to pay employees with these apps.

Which options are available for categorizing a direct deposit payment for a contractor?

There are two options: If your contractor is on direct deposit, you can select “Pay by direct deposit”, which adds the bill to your next payroll. If your contractor is not on direct deposit, you’ll need to select record a manual payment and enter the payment details.

How do I pay a contractor on Square?

Pay Contractors Through Square Payroll

  1. Log in to the Payroll section of your online SquareDashboard or Square Payroll app > click Pay Contractors.
  2. Select your pay period dates.
  3. Choose your payment method.
  4. Select your contractor(s) and enter their pay or hours worked.
  5. Click Continue.

How do I pay my Contractors direct deposit?

You can pay your 1099 contractors through payroll, and electronically deposit their payment into their bank account instead of paper checks. You will first need to set up your company to use direct deposit, then enter your contractor’s bank account information before you can pay them with direct deposit in payroll.

Can I pay employees through square?

You can pay contractors within the Payroll section of your online Square Dashboard. Be sure they complete proper onboarding and include their personal information in order to pay them.