I'm trying to file my 1099s. My contractors are all set up to track for 1099, they were paid well over $600, the G/L accounts are set up in the account mapping, they were paid via ACH and the transactions were uploaded from a bank file to Quickbooks as expenses. Some of the contractors are producing a 1099 while others are showing under limit when they clearly are not. Help!
To ensure all your 1099 filings are accurate, Susan, let me help you sort this out smoothly.
You have mentioned that your contractors are eligible for 1099 reporting because they meet the criteria that payments were exceeded the $600 minimum threshold.
Please note that payments made via credit cards, debit cards, gift cards, or third-party processors like PayPal are not included in 1099 reports and will automatically excluded by QuickBooks Online (QBO). This is because the financial institutions take on the responsibility of reporting these payments, sparing you the hassle of doing it yourself. This ensures that all transactions are accurately documented without requiring any effort on your part.
For more details which payment should be excluded, please refer to this article: Understand which payments are excluded from a 1099-NEC and 1099-MISC.
Additionally, I have included these articles to help you learn more about preparing and filing 1099 forms in QBO:
Furthermore, consider Explore QuickBooks Payroll for efficient management of your taxes and forms. With QuickBooks Payroll, our team will take care of your paperwork and ensure compliance with all regulations.
Feel free to reach out if you have any further questions or need more assistance with your 1099 forms. We're here to ensure that everything is well-aligned for your tax filings.
As I mentioned they were all paid via ACH
@susanzuca Most likely, when the transactions were uploaded, the ACH were classed as debit card payments by QB.
The issue is that debit card payments do fall under the 1099-K umbrella.
For instance, in QB Desktop, if you were to put 'Debit' in the check number field, it would automatically exclude the transaction from the 1099-NEC or 1099-MISC.
I don't know exactly what the QBO equivalent would be, but I'm certain that there is some way to flag particular Expenses by payment type for this very reason.
A good first step would be to check exactly how these ACH transactions for the problem vendors were finalized after the upload.
Hi there, Susan.
I appreciate the steps you've taken to fix this contractor payment issue.
Since some contractors are still not showing correctly in your 1099 reports despite these efforts, you'll want to contact our live support to proceed with the next steps. They have tools to look deeper into your specific setup and can guide you through more advanced troubleshooting if necessary. They can also remotely access your QuickBooks account, with your permission, to directly identify and resolve the issue.
To contact our live support, here's how:
I'm sharing these articles to help you prepare 1099 data, and learn more about the payment categories for 1099s:
We eagerly anticipate your return, Susan, if you require more help managing contractor payments. We're always ready to lend a hand.
I thought about that possibility too. When they upload they show no payment type and no check number in QuickBooks. I have already tried changing a few to ACH or Check as a test to see if that would help but it didn't help. Any suggestions on other ways to convince QuickBooks that these really are ACH transactions?
@susanzuca Un(?)fortunately, I've managed to mostly avoid QBO, so I'm only good for very general questions about it.
You may get lucky with one of the staff here, but as far as the regular users here go, @Rainflurry is probably your best bet for help with the finer details of QBO; BigRedConsulting and Just_me aren't fond of QBO either.
Since I tagged Rainflurry here, they might jump in on the discussion.
Understood, but as I mentioned to the last person that gave this answer. The missing items were all paid via ACH so they do still require a 1099. The transactions were uploaded to QuickBooks via a .CSV file that does not indicate a payment type. I'm afraid QuickBooks may be seeing them as debit card transactions or something, but when I add a payment type of ACH it still does not include them. I was able to switch 1099 preparation options from let QuickBooks prepare to prepare myself and was able to get them to show up and finish my filing. However, I'm still curious how to fix it so QuickBooks would recognize them properly.
It's good to know that you're able to display the missing items by switching the 1099 options, @susanzuca.
To resolve this quickly, let me route you to our live support. They will collect all the relevant information and guide you carefully through the following steps. Our team is dedicated to providing a seamless experience and ensuring your satisfaction.
To proceed in contacting our live support, please be guided by the steps below:
You can also visit the QuickBooks Online Support article to know the support's hours and to directly get in touch with them.
Furthermore, we have an informative article available that could assist you in learning how to correct 1099-NEC or 1099-MISC forms after they have been e-filed: Correct or change 1099s in QuickBooks.
We are committed to resolving all your concerns thoroughly, so please feel free to Reply to the thread if you have any additional issues.
@susanzuca Unfortunately, it may simply be that QBO isn't quite programmed properly for this.
It's a bit frustrating, but the shift towards 1099-Ks is relatively new, and QBO seems to have a pattern of adapting slowly to changes in accounting laws.
For instance, there have been a lot of issues with the changes to certain retirement plan options that came about a year ago.
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