Set Up Contractors and Track Them for 1099s In QuickBooks

Learn How to line up and track contractors for 1099 in QuickBooks In this article, we are getting to show you ways to feature and found out contractors in QuickBooks. alongside this, you’ll also find out how to stay track of the payments that you simply pay to them or track the contractors for 1099s in QuickBooks. Read this text to understand the way to found out and track contractors for 1099 in QuickBooks.

Who must file 1099?

All the non-employee who paid $600 or more during a year (Excluding the payment made via Mastercard or other electronic payments methods) got to file 1099. We recommend you to see the IRS guidelines also to understand everything you would like to understand about 1099 form filling.

Click for more info- Set Up Contractors and Track Them for 1099s In QuickBooks

Set Up Contractors in QuickBooks Online Follow the steps mentioned below to line up contractors.

STEP 1: Add a Contractor as a Vendor          

If you've got already added your contractor as a vendor to QuickBooks then you'll skip this step, otherwise, follow the step to enter the contractor in QuickBooks Online.

Go to the Workers/Payroll>Contractor’s option.

Select the Add a contractor’s option.

Enter the contractor’s information as they provided on their W-9 forms.

Once all the specified fields are added then click on the Add Contractor.

STEP 2: Track Contractor’s 1099 Payments Go to Expenses> Vendor’s option.

Next, you would like to settle on a vendor whom you're willing to trace then open their profile.

Here, click on the Edit option.

After that, checkmark the box stating Track Payments for 1099.

If this feature is chosen then QuickBooks will automatically keep track of this vendor payments. So, whenever, you’ll be needed to file your 1099s, you'll easily add the vendor’s payment to the shape.

If you would like to understand the way to prepare and file 1099 in QuickBooks Online, then click on the link for the detailed procedure.

Set Up Contractors in QuickBooks Desktop Windows To start tracking contractors’ 1099 payments in QuickBooks Desktop Windows, you would like to enable the 1099-MISC form. to try to this, follow the instructions carefully:

STEP 1: activate the 1099-MISC feature    

Go to the highest menu bar then select the Edit menu then Preferences.

In the Tax: 1099 option, attend the corporate Preferences tab.

Then, attend the does one file 1099 forms? Section then selects Yes there.

Once you're done making the specified changes, click on the OK option.

STEP 2: Add a contractor as a Vendor  

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Go to the menu bar at the highest of the house screen then Vendors> Vendor Centre.

Go to each tab then fill out each and each field. the knowledge that you simply required hare; you'll have it from the W-2 form. If any field has misinformation, then don’t worry, you'll correct it later.

Click on OK.

STEP 3: Track your payments for 1099s       

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Follow the steps mentioned below to line up vendors and to start out tracking their payments for 1099 also.

Go to the menu bar at the highest of the house screen then Vendors> Vendor Centre.

Find the seller that you simply want to trace then click on the Edit✎ ahead of their name.

Then, attend the Address info tab and verify the knowledge mentioned below.

Check whether your state abbreviation and postcode is correct or not. (NOTE: State abbreviation are going to be of two letters.)

If your Vendor may be a person instead of a corporation then confirm that the Vendor’s legal name should appear on the primary Name, name, and surname fields.

But if you've got a corporation as a vendor instead of an individual then you would like to go away the Company’s Name field empty. If you entered the company’s name within the field then it'll appear twice once you prepare the 1099 MISC form.

Next Tax Settings tab.

Now, you would like to see whether the seller is eligible for 1099 or not.

In the Vendor Tax ID field, you would like to enter the vendor’s Tax number (TIN).

Review all the fields and if everything seems fine, select OK.

If this feature is chosen then QuickBooks will automatically keep track of this vendor payments. So, whenever, you’ll be needed to file your 1099s, you'll easily add the vendor’s payment to the shape.

Set Up Contractors in QuickBooks Desktop Mac In QuickBooks Desktop for Mac, you furthermore may get to enable 1099-MISC forms option so as to start out tracking contractor’s payments for 1099. to try to to this, follow the instructions mentioned below:

STEP 1: activate the 1099-MISC feature  

Go to the menu bar at the highest of the house screen and choose the Preferences menu.

Go to the 1099s section.

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Next, you would like to checkmark the box stating 1099-MISC forms are filled.

After that, for every 1099 category that applies to your business for reporting and taxation purposes, you would like to pick the accounts for such categories.

Select the Account menu and choose an appropriate account.

If you would like to link quite one account: from the account drop-down list, choose the chosen Accounts option, then Select Accounts window will open, here you would like to settle on the specified accounts. Once you finished choosing all the required accounts, click on OK.

NOTE: it's not necessarily important that your business must report on all the 1099 categories. There are some sorts of businesses that only required to report amounts just for Box 7: Non-Employee Compensation. If you would like to possess more information about the reporting requirements. you'll also take consultation from an accounting expert otherwise you can contact the IRS too.

If you would like then you'll also change the edge amount, the sole thing you would like to enter the new amount within the Threshold column. This step isn't mandatory.

STEP 2: Track contractors’ payments for 1099s     

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Go to the menu bar at the highest of the house screen and choose the Lists > Vendor’s menu.

Find the seller that you simply want to trace within the vendor list window then click on the Edit ahead of their name.

Check whether your state abbreviation and postcode is correct or not. (NOTE: State abbreviation are going to be of two letters.)

If your Vendor may be a person instead of a corporation then confirm that the Vendor’s legal name should appear on the primary Name, name, and surname fields.

But if you've got a corporation as a vendor instead of an individual then you would like to go away the Company’s Name field empty. If you entered the company’s name within the field then it'll appear twice once you prepare the 1099 MISC form.

Select the extra Information tab.

Now, you would like to see whether the seller is eligible for 1099 or not.

In the Vendor Tax ID field, you would like to enter the vendor’s Tax number (TIN).

Select OK.

Set Up Contractors in Intuit Full-Service Payroll STEP 1: Add a Contractor as a Vendor    

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First of all, attend the worker tab.

Then, you would like to feature a replacement contractor, you'll find this feature by scrolling down until you discover contractors.

Select Contractor’s type.

Here, you've got two options, either to line up the contractors as a business contractor or a private. this may depend upon the knowledge that QuickBooks compiles. If the Contractor is a private then you would like to enter their Social Security Number (SSN) on the opposite hand if it’s a business contractor then you would like to enter their Employer number (EIN).

Enter the remainder of the contractor’s information.

STEP 2: found out the contractor’s Direct Deposit Follow the steps mentioned below if you've got opted for Direct Deposit because the payment method.      

In the Pay method field, click on the Edit option.

Then, click on the Pay Method menu then select the Direct Deposit options.

Then, give bank info of the contractor.

Select OK. You need to mark the checkbox if you’ve already paid the contractor outside the service within the current calendar. you would like to enter the acceptable information.

If you're getting to add a payment amount of cash that you’ve already paid to your contractor, you would like to form sure that the 1099-MISC form that Intuit has sent to the contractor at the year-end has the proper amount of cash.

Reimbursement: Here, you would like to enter the expenses associated with Business that the contractor has paid beforehand then you paid them back. Remember that, the quantity you enter here won't be reported on Form 1099-MISC. Click for more info- Set Up Contractors and Track Them for 1099s In QuickBooks Compensation: In Box 7 of Form 1099-MISC, you would like to enter the entire previous payments which require to be reported.      

After that, select Continue.

Set Up the contractor with Workforce First of all, select the View Pay Stubs Online option.

Then, you would like to enter the e-mail address of the contractor then select Save.

You can also send a short-lived User ID and password, click on the Send Email option.

Select Done.

The Bottom Line We hope that now you’ve learned the way to found out and track contractors for 1099s in various QuickBooks software like QuickBooks Online, QuickBooks Desktop for Windows & Mac, and in Intuit Full-Service Payroll.