1099

Hello there, @purplerk.

Let me share some insights about who needs 1099.

In QuickBooks, you can set up any non-employee who you might pay $600 or more in a given year (although electronic payments, such as with a credit card, don't count). To help you verify if you need to issue a 1099, I recommend checking the IRS guideline through this link: Form 1099 NEC & Independent Contractors FAQs.

In addition, you can read this article for a complete guide on setting up contractors in QuickBooks Desktop: Set up contractors and track them for 1099s in QuickBooks.

For future reference, check out this resource to learn how to prepare and file 1099s: Create and file 1099s with QuickBooks Desktop.

Please know that you are always welcome to post here again if you have any additional QuickBooks-related concerns. Rest assured that we in the Community are ready to assist you. Keep safe!

Quickbooks doesnt give the answer I am looking for

@purplerk 

Yes, you should issue them a 1099-NEC if their commission is $600 or more.

I'm here to answer your question about getting the 1099 form, purplerk.

You're required by U.S. tax law to file a Form 1099-NEC for anyone that you paid $600 or more in the previous year. This is for any person you’ve withheld any federal income tax from under the backup withholding rules.

You're also required by U.S. tax law to file a 1099-MISC form for anyone that you paid $600 or more in the previous year. This is for vendors, attorneys, and other individuals who are not proper contractors.

I suggest contacting the IRS as they can tell if you need to get 1099 for that dealership that collects commission from your company.

If you need to get 1099, you can set up those dealers as vendors and track them for 1099s in QuickBooks Desktop. Here's how:

Step 1: Turn on the 1099-Misc feature

1. Go to the Edit menu and then Preferences.
2. Select the Tax: 1099 menu, then go to the Company Preferences tab.
3. Select Yes in the Do you file 1099-MISC forms? section.
4. When you're done, select OK to save your settings.

Step 2: Add a contractor as a vendor

1. Go to the Vendors menu, then Vendor Center.
2. Select the New Vendor dropdown, then New Vendor.
3. Fill out the fields on each tab. You can get this info from a W-9. You can also edit and change this info later.
4. When you're done, select OK.

Step 3: Track contractor payments for 1099s

1. Go to the Vendors menu and then Vendor Center.
2. Click a vendor's name and then select Edit✎.
3. Proceed to the Address Info tab and review the info.
4. Click the Tax Settings tab.
5. Select and check the Vendor eligible for 1099.
6. Enter the vendor's tax identification number in the Vendor Tax ID field.
7. When you're done, select OK.

During tax season, you can then prepare and file your 1099s.

I'm adding this article to learn what 1099 forms there are and how you can prepare for the upcoming tax season.: Get answers to your 1099 questions.

Leave a comment below if there's anything else you need. I'll stay around to answer your questions. 

Thank you MaryLandT for your response

You're most welcome, @purplerk.

We appreciate you considering my colleague's suggestion about handling 1099 forms in QuickBooks Desktop. Hope everything runs smoothly on your end. 

Let me add this module so you can read some of the most commonly asked questions regarding 1099: Frequently Asked Questions about 1099.

Feel free to post again in case you have other concerns about payroll or QuickBooks in general. It's our pleasure to be of help always. Have a nice day ahead!