Contractor Direct Deposit is available to both QuickBooks Online Payroll and QuickBooks Full Service Payroll customers.
Direct deposits made through Contractor Direct Deposit are posted to recipient’s bank accounts with 24 hours. Bartholot observes that, “some businesses can hang onto their money nearly 5-7 days longer when they pay their independent contractors via direct deposit inside QuickBooks Payroll.” This leeway is crucial for businesses that periodically white-knuckle their way through collecting funds from customers while seeking abeyance from paying contractors. The days of checks getting lost in the mail or having coffee spilled on them fade into the past as well. Direct deposit eliminates the need to pay contractors by cash or check.
The days of Net 30 terms are quickly fading into the past, precipitated by instant transfer services such as Venmo, along with technology start-ups such as Uber that enable their contractors to transfer earnings into their bank account up to five times per day. Accordingly, two new QuickBooks Payroll offerings will enable small businesses to compete better for talent in the burgeoning gig economy, as well as pay existing employees and contractors more efficiently. The QuickBooks Payroll team knows that for many small businesses, getting workers paid quickly and accurately is a huge pain point. As the pace of business accelerates, Intuit continues to empower small businesses to keep up.