Create and file 1099s with QuickBooks Contractor Payments if you use QuickBooks Desktop

Gather a list of your 1099 Contractors and payments from QuickBooks Desktop that qualify for 1099s. QuickBooks Desktop has two reports to help you review your 1099 information.

• 1099 Summary: shows the 1099 box totals and allows you to filter by 1099 vendors, accounts or thresholds.
• 1099 Detail: shows the details of each check paid to vendors with additional filters for 1099 vendors and accounts.

Follow these steps to create these reports.

1. Go to your QuickBooks Desktop company file.
2. Select Reports, then Vendors & Payables.
3. Select either 1099 Summary or 1099 Detail.
4. Next to Dates, select the correct date range for your 1099s.

The reports will show which contractors qualify for 1099s. If contractors are missing or amounts are wrong when preparing your 1099s, see Fix missing contractors or wrong amounts on 1099s.

Step 1: If you haven’t already done so, sign up for QuickBooks Contractor Payments (without QuickBooks Online. )

Step 2: Add your contractors to QuickBooks Contractor Payments

1. Go to QuickBooks Contractor Payments.
2. Go to Contractors, then Contractors.
3. Select Add a contractor.
4. Enter your contractor’s name and email address. If you want the contractor to fill out their own info, select the Email this contractor checkbox.
5. Select Add contractor.

If you opted in for the email, wait for the contractor to fill out their info. 

If you didn’t choose to send an email:

1. Select Add next to Personal details or Bank account and enter the contractor info. 
2. When finished, select Save.

Step 3: Add your contractor payments to QuickBooks Contractor Payments

To add one payment at a time:

1. Go to QuickBooks Contractor Payments.
2. Select Contractors, then Contractors.
3. Select the contractor you want to add payments for.
4. Select the Pay with direct deposit ▼ dropdown, then select Write check.
5. Enter the info for the payment:
   1. Enter a payment amount for the total payments you paid that contractor in the year. 
   2. In Category ▼select Contractor Payment or Contractor Reimbursement. At this time, you can only choose two payment types.  
   3. Enter a Pay date in 2022.  
6. When finished, select Save.

Repeat for all the contractors you paid.

To add multiple payments at once:

1. Go to QuickBooks Contractor Payments.
2. Select Contractors, then Overview.
3. Select Record payments.
4. Select the contractors you want to add payments for.
5. For each contractor chosen, enter the info for the payment:
   1. Enter a payment amount for the total payments you paid that contractor in the year. 
   2. In Category ▼select Contractor Payment or Contractor Reimbursement. At this time, you can only choose two payment types.  
   3. Enter a Pay date in 2022.  
6. 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.

1. Go to QuickBooks Contractor Payments.
2. Select Contractors, then Contractors.
3. Select Prepare 1099s.
4. Make sure your company name, email, address, and tax ID are correct and match what's found on tax notices or letters from the IRS. Select Edit ✎ to make any changes.
5. Select Confirm info and get started.
6. Select Select accounts and choose or confirm the accounts used for your 1099 expenses or payments, then select Add. 
7. Next to each account added, select the 1099-NEC or 1099-MISC boxes that represent the type of payments made to your contractors this year. 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.
8. On the Tracked for 1099 tab, place a checkmark next to each contractor who should get a 1099. Make sure ‌the contractors' personal info and email addresses are correct. Select Edit ✎ to make any changes.
9. If a contractor is missing, select the Not tracked for 1099 tab. Select Add to tracked list to add the contractor to the Tracked for 1099 tab then select Back.
10. Review the Reportable total amount for each contractor selected, then select Next.
    • Note: You won't see certain electronic payments to contractors such as those made by credit card, Paypal, etc. 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, from the Reportable payments only ▼ drop-down select Non-reportable payments only.
11. Select Preview to view each 1099 and review the amount in each box. Select Continue to 1099-MISCs to view your 1099-MISC forms.  Select Next.
12. Select Continue to E-File to e-file your 1099s. Or select I’ll print and mail to print and mail the forms yourself.
    • Note: There's a limit on the number of paper forms you can file by paper. To learn more, see IRS and Treasury issue final regulations on e-file for businesses.

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. 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. Go to QuickBooks Contractor Payments.
2. Select 1099 filings. 
3. 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.

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.

1099s are due to the IRS and your contractors by January 31. To make sure your 1099s can be postmarked to your contractors by January 31, e-file before January 28 at 5:00 PM PT. You can e-file 1099s through January 31 to be on time with the IRS. E-file is open until April 30.

The 1099 e-file service is only for federal 1099-MISC and 1099-NEC filings. For more info about what states require a 1099 filing or support combined filings see File your state 1099 forms. Contact your state for more information and to learn how to file.

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.  Each subscription for each company is a separate fee.

See Correct or change 1099s in QuickBooks to learn how to fix incorrect 1099s.

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

Contact us if the archived or previously filed 1099 is missing.