What Do I Need to Know About Set Up A 1099 Contractor in QuickBooks?

[midig87021]

Hello,

I need help setting up a 1099 contractor in QuickBooks. I’m unsure of the correct steps to ensure that everything is done accurately, from entering their details to managing their payments and generating 1099 forms at year-end. Can anyone provide a step-by-step guide or point me to useful resources?

Thanks a lot!

[kimkardashian44 · Accepted solution]

Setting Up a 1099 Contractor in QuickBooks

1. Open QuickBooks: Launch your QuickBooks application and sign in to your company file.

2. Navigate to Contractor Center:

   • Go to the "Expenses" menu.
   • Select "Contractors" or "Vendors" (depending on your version).

3. Add a New Contractor:

   • Click on "Add Contractor" or "New Vendor".
   • Enter the contractor’s name, business name (if applicable), and email address.

4. Enter Contractor Details:

   • Provide their address and phone number.
   • Select “Vendor Type” as “Contractor”.
   • For the 1099 form, make sure to check "Track payments for 1099".

5. Set Up Payment Information:

   • Enter the contractor’s Tax ID or Social Security Number.
   • Specify payment terms and any relevant notes.

6. Save Information:

   • Click "Save" to store the contractor’s details.

7. Verify 1099 Settings:

   • Go to "Taxes" or "Tax Center".
   • Select "Prepare 1099s" and confirm your 1099 settings are configured correctly.

By following these steps, you'll ensure that your 1099 contractors are properly set up in QuickBooks, facilitating accurate year-end tax reporting.