What do we have to do with contractors end-of-the-year taxes using QBO premium payroll? Is this automatic like W2 employee tax reporting?

I’m here to help share information about filing 1099 forms in QuickBooks, @HollyJoy.

In QuickBooks, you'll have to file manually the 1099-NEC forms for your contractors. Though you can process 1099s using an e-file service, just add the information manually for each contractor. Also, just make sure to map those expenses to the right accounts to prepare and file your 1099s.

To file the forms, here's how:

1. Go to the Workers or Payroll menu (Or select Expenses and then Vendors).
2. Select the Contractors tab.
3. Click Prepare 1099s and select Let’s get started.
4. Ensure your company name, address, and tax ID is correct and matches the letters from the IRS.
5. Select the Nonemployee compensation box to represent the type of payments made to your contractor this year. 
6. Fill in the needed details and ensure the mapping of your 1099 is accurate.
7. Once done, you're now ready to file your 1099 forms.

For more details about this, you can check out this article for reference (read Step 3: Create your 1099s in QuickBooks Online section): Create and file 1099s using QuickBooks Online.

You can refer to the following article for more information about setting up your contractors as vendors and tracking related payments: How to set up contractors and track them for 1099s in QuickBooks.

To learn more about the difference between 1099-MISC and 1099-NEC, you can refer to the links below that provide the complete details:

• Understanding payment categories for the 1099-MISC and 1099-NEC
• Instructions for Forms 1099-MISC and 1099-NEC 2020
• Correct errors on Forms 1099-MISC

You’re always welcome to get back to me if you have other queries about preparing your 1099. I’d be more than happy to work with you again. Keep safe and take care, @HollyJoy.