QB Issue Resolution:

To pay by Direct Deposit, the pay date must not be less than two business days in the future. That said, yes, you can send your 1099’s Direct Deposit but make sure to enter the correct date that the independent contractor should be paid.

 

Here are some great articles that you can check out about paying Independent Contractors using Direct Deposit and fixing transmission issues:

If you need further assistance with this process, feel free to get in touch with our Customer Care Team.

 

Resolution for Issue '1099 Schedule Direct Deposit' available: Yes (Solved).
Source: Intuit Community forum.

1099 Schedule Direct Deposit: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for 1099 Schedule
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Error Recovery for 1099 Schedule [Canada]
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