Hello, Dave.
Thanks for getting back to us! I'll hop aboard and clarify some information about adding deductions on direct deposit checks. I'll also lay down some options on how we can record a check with the deductions for your contractor.
To shed light on the issue, we're unable to add a deduction on direct deposit checks for contractors. As what you've experienced, the system will keep correcting the check, and will only include the expense account (positive amount).
Though as mentioned by my colleague, FritzF, we can add the deduction on a manual check (not through direct deposit).
For our options, we'll want to create a manual check by clicking on the arrow drop-down menu on the Contractors page, then selecting Write check.
Add the deductions and the expense accounts as pointed out by FritzF, then click on Save and Close.
Issue the check to the contractor or process the net amount payment manually through a bank transfer (if issuing the check isn't possible).
Another option is to simply process the check with the direct deposit service, then void or delete it after the contractor has received the net amount. To void a check:
- Go to Expenses, then click Vendors.
- Select the contractor's name.
- Look for the payment you want to delete or void, then click View/Edit.
- Select either Delete or Void.
- Click Yes to confirm changes.
Then, create a manual check with the deductions.
Need more details about voiding or deleting checks for corrections? Check out this article for more information: Void or cancel contractor payments.
Are you managing 1099 contractors in QuickBooks? We'll want to bookmark and read this article for a guide if you need help creating their 1099 forms in the future: Create and file 1099s using QuickBooks Online.
Do you have more questions about managing vendor transactions? Or do you need to do some other tasks in QuickBooks? Let me know and I'll clarify the details, or lay down some guides for you.
I'll see you around again.
