QuickBooks Error: Vendor Payment transmission failed, If this problem persists contact QuickBooks Help.
When a user sending a Direct deposit to an independent contractor come across this error.
A small error window appears on your screen as is shown in the image below:
If you click on the error description, then you will see an exact reason for this error
- The payment was made for non-1099 vendor
- As long as that Independent contractor or vendor not listed as a 1099 vendor, You would have this error.
If you have any vendor or independent contract that you would like to via QuickBooks Payroll Direct deposit, He or She should be categorized as 1099 vendors to be getting paid via QuickBooks Payroll. Try to make that contractor as 1099 vendor and try to pay, Or you may try to make electronic payments to non-1099 vendors.
If you want to know What is a 1099 vendor
- 1099 vendor is an independent vendor who works for your business for Example Independent Contractors and Attorneys. That means if you hire somebody as an independent worker they must categorize as a 1099 vendor in QuickBooks Payroll. Because you can not consider them an employee, They don’t get paid hourly or salary.1099 vendors aren’t the part of your company payroll. So make sure you don’t make this QuickBooks Payroll mistake.
Note: As per Intuit Direct Deposit, you won’t be allowed to pay bills or make payments to individuals, Who is not an Independent Contractor.
An Independent contract is not a full-time employee but the work for your business Independently not like any other full-time employee.
Step to resolve the error Unbale to send Direct Deposit to an Independent Contractor :
- First, find out the vendor in question
- Open QuickBooks and navigate to the main menu and choose Employee and then Send payroll
- You have the next windows open as Item to send for here review the information and select Banking and then Use Register to check the direct deposit payments and check who you are paying using this window.
- Find out the vendors you categorize as 1099.
- You can check each and every vendor for 1099 by going into Reports and then Vendors and Payables after that 1099 summary.
- As it’s shown in the Image, From the 1099 options menu choose only 1099 vendors and check if any amount is missing.
- Now you select All vendors from the 1099 drop-down If now you see the amount and then the vendor is not selected for 1099.
Note: In case if any vendor is not an independent contractor, please change the direct deposit payments to the regular check. To do that find check from the register, Open it via double click, and then uncheck the online payment and save the changes.
But if your vendors are independent contractors follow these steps:
- Open QuickBooks and Got Preferences
- Select option Tax 1099 and then Enable “Do you file 1099 Misc forms?” now save the preferences.
- Go to Vendor Center and Choose the vendor in Question and Click to Edit
- Fill the entire information for that vendor like Address, First and Last name, Company name if any, or leave it blank. That’s the information appear on the 1099 Misc form.
- Next, go to Tax Settings and check vendor eligibility for 1099
- Enter the Vendor Tax ID number in that box and save changes
- The issue with more than on the vendor repeats the same steps for all.
- Once you are done with changes Try to resend the Payments to Intuit again by going in Employee and then Send Payroll data after that click Send all.
How to avoid this error in the Future:
- Remove the Direct deposit from the vendor records
- To do that Go to vendors and then click vendor center
- You have an option listed on the left side 1099 vendor
- Double click on it and choose to remove Direct Deposit
- Then go to additional information and choose to click on Direct deposit
- Once the Direct Deposit is open Uncheck box the Use Direct Deposit.