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Create and file 1099s with QuickBooks Contractor Payments

SOLVEDby QuickBooksIntuit Online Payroll256Updated December 22, 2022

Learn how to prepare and file your federal 1099-MISC and 1099-NEC if you have QuickBooks Contractor Payments.

If you pay contractors in cash, check, or direct deposit, you'll need to file 1099s with the IRS. QuickBooks Contractor Payments can help you prepare your 1099s seamlessly, using the info you already have in your account. See Get answers to your 1099 questions for more info.

Steps for other QuickBooks products: This article covers QuickBooks Contractor Payments. If you have QuickBooks Online or QuickBooks Desktop, we can still help you create and file your 1099s.

Follow the steps below to create and file your 1099s. When you file 1099s with us, we’ll email, and mail a printed copy, to your contractors.

Do you need to file a 1099?

  • The IRS requires you to file a Form 1099-NEC for any non-employee that you: Paid $600 or more in cash, check, or direct deposit during the previous year.
    • Note: The IRS doesn't allow certain electronic payments to be reported on Form 1099-MISC or 1099-NEC. These payments include credit card, debit card, gift card, or PayPal payments. QuickBooks Contractor Payments automatically excludes these for you. The payment companies will report those payments so you don't have to.
  • Withheld any federal income tax from under the backup withholding rules.

When are 1099s due?
1099s are due to the IRS and your contractors by January 31. However, we recommend you e-file before January 27 at 5:00 PM PT. This is to make sure your 1099s can be postmarked to your contractors by January 31. You can e-file 1099s through January 31 to be on time with the IRS.

Need to file in your state?
The 1099 E-file service is only for federal 1099-MISC and 1099-NEC filings. For more information about what states require a 1099 filing or support combined filings see Does my state need Form 1099-MISC to be filed? Contact your state for more information and learn how to file.

If you have been using QuickBooks Contractor Payments for all your payments this year, you have all you need to create 1099s. To see what contractors will get 1099s, or to see your payments totals, follow these steps to create 1099 reports.

Missing a contractor? See Set up contractors and track them for 1099s.

Missing payments or new to QuickBooks Contractor Payments? Choose your product to learn how you can add a lump sum or individual payments to your contractors.

  1. Go to Payroll, then select Contractors (Take me there).
  2. Select the contractor you want to add payments.
  3. Select the Pay with direct deposit ▼ dropdown, then select Create expense.
  4. Enter the info for the past payment, then select Save and close.

To add one payment at a time:

  1. Go to Contractors, then select Contractors.
  2. Select the contractor you want to add payments for.
  3. Select the Pay with direct deposit ▼ dropdown, then select Write check.
  4. Enter the info for the past payment, then select Save.

To add multiple payments at once:

  1. Go to Contractors, then select Overview.
  2. Select Record payments.
  3. Select the contractors you want to add payments for.
  4. For each contractor chosen, enter the info for the past payments.
  5. When finished with each contractor's payments, select Record Payment twice.

Here’s how to get your 1099s ready to e-file or print. These steps walk you through organizing your contractors and payments so your filings are correct.

Note: We recommend you e-file before January 27 at 5:00 PM PT so they can be processed on or before January 31. You can e-file 1099s through January 31 to be on time with the IRS.

  1. Follow the steps for your product to get started.
    • Contractor Payments with QuickBooks Online: Go to Payroll, and select Contractors (Take me there) or Get paid & pay, and select Vendors (Take me there).
    • QuickBooks Contractor Payments only: Go to 1099 filings.
  2. Select Prepare 1099s and then Let’s get started.
  3. Make sure your company name, address, and tax ID is correct and matches what's found on tax notices or letters from the IRS. Select Next.
  4. Select the 1099 boxes you want for your contractor payments or expenses. Then select the categories, Contractor Payment or Contractor Reimbursement used for these expenses or payments. Select Next.
    • Important: Choose your boxes carefully. Most businesses will choose “Nonemployee compensation (Box 1 1099-NEC)”, but check with your accountant if you think you might have made other types of payments.
  5. Make sure that all of your contractors show up and their personal info and email addresses are correct. Select Next.
  6. Review the payment totals for each box you selected in step 4. 1099-NEC and 1099-MISC payments are automatically separated. Select Finish preparing 1099s.
    • Note: You won't see certain electronic payments such as those made by credit card. This is because these are reported for you by the credit card company, bank, etc. If you don’t see all of the payments you expect, you can double-check the year and threshold just above the contractor column.
  7. Select E-File for me to e-file your 1099s. Or select I’ll file myself to print and mail the forms yourself.

Now that you've prepared and verified that the information is correct on your 1099s, it’s time to e-file.

  1. After preparing your 1099s, select the E-File option and verify your 1099s.
  2. Follow the on-screen steps to complete your 1099 e-file. If prompted, enter your billing info. You'll also be able to review each contractor's 1099.
    • If prompted, choose the delivery option for your contractor's copies. If you don't see this option, you've already opted-in to provide your contractors online access to their 1099s when you added them to QuickBooks. If an email address is incorrect, you'll need to update then go back through the 1099 e-file flow. 

Note: The paper version of Copy A of Form 1099 is for your records. You shouldn't print or mail this form to the IRS.

After you file your 1099s to the IRS with the steps above, we’ll notify you of your filing status through email. You can also check your filing status anytime.

  1. Follow the steps for your product to get started.
    • QuickBooks Contractor Payments with QuickBooks Online: Go to Taxes then 1099 filings.
      QuickBooks Contractor Payments only: Go to 1099 filings.
  2. View the status of the e-filing under Filing status. Below is the list of statuses and what they mean:
    • Not Submitted: You haven't e-filed Form 1099-NEC or 1099-MISC with the IRS. You can continue revising it.
    • Submitted: You have e-filed the form to the IRS. Note: If you need to revise it, you may need to file a manual amendment. Use these IRS instructions and form to do so.
    • Received by IRS: The IRS has received your form and is either processing it or has already processed and approved it. Customers who have submitted their 1099 E-File forms will receive a confirmation email approximately a week after the IRS accepts and confirms submissions. You may not receive this confirmation until the middle of January or later.
  3. Select View 1099s to view a PDF copy.

FAQs

Yes. If you have already filed 1099s, you can create and file additional 1099s in QuickBooks Contractor Payments.

If you need to file 1099s for a separate company, log into that company in QuickBooks Contractor Payments and follow the same steps. 

Note: Each subscription for each company is a separate fee.

You will need to work directly with the IRS to make a manual amendment to your 1099 forms. Use these IRS instructions to do so. For more information see Correct or change 1099s in QuickBooks. Once corrected you will need to provide the corrected return to the recipient or contractor yourself.

  1. Go to 1099 filings.
  2. Select View 1099 to view a PDF copy.

If the archived or previously filed 1099 isn’t listed, contact us if you need copies.

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