Paying Contractors

GOWYO · ‎February 08, 2021

My process:

Create a bill with Items and a due date 30 days from creation:

Day Rate Item

Mileage Reimb Item

Office Rental Reduction Item

Service Fee Reduction Item

Example:

Day Rate Item +500

Mileage Reimb Item +100

Office Rental Reduction Item -40

Service Fee Reduction Item -10

Net Pay +550

When I do this, crazy numbers flow into the 1099 detail. QB's is calculating some sort of weighted average on the reductions and spreading them across the Day Rate and Mileage Reimb. The reductions show the date I create the bill. The payment shows the day I pay the bill, but not at the $550. Some other slightly reduced amount is listed. I have no idea how to fix this or why it is happening. Any thoughts???? I know how I map accounts on the 1099 NEC plays a role, but I cannot figure out why the reductions show date of bill and why they are averaged over the Day rate and mileage reimb. I have called support and they were useless. No harm meant - they had no idea how to help and one lady dropped the call after placing me on hold for 30 min.

Rea_M · ‎February 08, 2021

Hello there, @GOWYO.

You're right. Mapping accounts on the 1099-NEC play a big role in generating the data you need through the 1099 Detail report. With this, let's check your 1099 account mapping for the Day Rate and Mileage Reimb items. This is to make sure they're mapped to the appropriate account. Let me guide you how.

Go to the Edit menu.
Select Preferences.
Choose the Tax: 1099 menu.
Click the Company Preferences tab.
Select the Click here hyperlink to map the accounts.
Follow the on-screen instructions to complete the process.

I've attached a screenshot below that shows the third to fifth steps.

After that, pull up the 1099 Detail report again to check that the update is applied accordingly. Just go to the Reports menu, then select Vendors & Payables.

Additionally, here's an article that answers the most frequently asked questions about Form 1099s in QBO: What is 1099, and do I need to file one?. It includes topics about 1099-NEC, 1099-MISC, and 1099-K.

Also, I'm adding this article to learn more on how QBDT generates reports: Understand reports. It also includes the complete list of available reports along with their description.

Let me know if you have other 1099-NEC concerns or inquiries about paying contractors in QBDT. I'm just around to help. Take care always.

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