Hello, mrbrooks2206.
Let me clarify why you're encountering the 1099 threshold error and how to resolve it.
The under-reporting threshold error indicates that the reportable payments do not meet the $600 threshold required for 1099 reporting. When this happens, the system will not generate a 1099 form.
Please note that payments made via credit card, debit card, or through third-party processors such as PayPal do not contribute to the 1099 threshold. When creating expense transactions, selecting these payment methods will exclude them from 1099 calculations.
To resolve this, let's review the vendor's transactions to ensure that eligible payments meet the necessary reporting threshold. This will help us identify and exclude any non-reportable payment methods.
Leave a comment below if you have any questions.
