The IRS 1099 form is a document used to report payments made by individuals or businesses who are not your employee. The payer fills out the 1099 form and provides you and the IRS copies. Small and medium-sized businesses have to report the payments they made to the individuals or contractors via the 1099 form. QuickBooks users must be aware of how to Set Up a 1099 Contractor so that they can easily track and file these forms. In addition, you must fill out the 1099 form if you pay an employee $600 or more than that in the same year. Also, the recipient must ensure that they have filled out the W-9 Form before initiating the process of setting up contractors.
Seeking for technical assistance to set up a 1099 contractor in QuickBooks and need instant help? Well, don’t worry and consult with one of our experienced experts by dialing the helpline number +1(855)-856-0053. Our experts are available round the clock to provide you with the best possible assistance within the shortest amount of time.
Here’s how to Setup a 1099 Contractor in QuickBooks
The procedure for creating a 1099 contractor in QuickBooks varies depending on the edition. Check the procedures for the payroll service you’re using and follow them.
Instructions to Setup a Contractor in QuickBooks Online
To set up a contractor in QBO applications, you have to add a contractor as a vendor and then contractor payments for the 1099s Form. Follow the step by step instructions listed below to do the same:
Step 1: Assigning your Contractor to be a Vendor
- To initiate the process, select the Contractors menu.
- Soon after this, click the highlighted Add a Contractor option.
- Add the Contractor’s details accurately or mark the checkbox of “Email this Contractor” so that they can fill it out.
- Finally, choose the Add Contractor option after making all the changes.
Step 2: Maintain a record of contractor payments for 1099s.
Now that you have added the Contractor as a vendor, you need to track their payments.
- In the first step, move to the Vendors menu.
- Soon after this, choose the vendor you want to track and then open their profile.
- Select the Edit option and mark the checkbox of Track payments for 1099.
Stepwise Instructions To Setup a contractor in Intuit Online Payroll:-
Step 1: Adding Your Contractor as a vendor
- Go to the Employees tab, scroll down to Contractors and choose the Add a Contractor option.
- After this, select the contractor type as per your preference.
- You decide whether the Contractor will be an individual or a business. This determines the type of data QuickBooks gathers.
- Finally, fill out all the details of your contractors in the required text fields accurately.
Step 2: Setting up your Contractor’s direct deposit and enter prior payments
- You have to choose Direct Deposit next to Payment Method if you have selected direct deposit as a payment method.
- Mark the checkbox and fill in the required details if you have already paid the Contractor outside of the service this calendar year. Make sure the Form 1099-MISC you send to the Contractor at year’s end has the correct dollar amount when you add the lump sum total you’ve already paid the Contractor.
- Compensation- You need to add the total of previous payments to be reported within Box 7 of Form 1099-MISC.
- Reimbursement- You are required to add all the business-related expenses prepaid by the Contractor that you paid back to them. The amounts that are entered in this section will not be reported on Form 1099-MISC.
- Soon after this, click Ok and add the details of the Contractor’s bank account info. Further, select Ok.
- Finally, click on Agree to verify the bank information.
Summing It Up!!
So, here we come to the end of the blog on setting up a 1099 contractor in QuickBooks and hope you find it worth reading. Also, ensure that your employee has filled out the W-9 Form so that you can quickly set up a contractor. For any additional help, get in touch with our experts by dialing the toll-free number +1(855)-856-0053.
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