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sudhirvenkat0-gm
Level 1

When I'm paying 1099 contractors, do I have to utilize the "Prepare 1099s" button every time I pay a contractor, or just prepare 1099s come tax season.

 
2 Comments 2
SarahannC
Moderator

When I'm paying 1099 contractors, do I have to utilize the "Prepare 1099s" button every time I pay a contractor, or just prepare 1099s come tax season.

Hello there, @sudhirvenkat0-gm. That's great that you're able to post it here.

 

You can utilize the Prepare 1099s button when filing the 1099 form. This is for each person whom you have paid during the year. 

 

To pay your contractor, you can either use direct deposit or a paper check. I'll be adding ways on how you can pay your contractors within your QBO account.
 

Pay a contractor with a paper check:

 

  1. Go to the Payroll menu.
  2. Then, select the Contractors tab.
  3. Select the dropdown next to the contractor's name and then Write check. If you have any unpaid bills from the contractor, you can also pay that bill. All we have to do is select Pay Bills to pay all or part of the open bill for the contractor.
  4. Select the expense account you use to track paychecks.
  5. Once done, click Save and Close. If you want to print it, select Print Check.

 

Pay a contractor with direct deposit:

 

  1. Still, within the Payroll menu, select the Contractors tab.
  2. Next to the contractor’s name, select the dropdown and then Pay with direct deposit.
  3. Enter the amount for the direct deposit.
  4. The same thing goes, select an expense account.
  5. Then, Save & Send.

 

If you want to see what you’ve paid your contractors, you can run the 1099 reports such as the 1099 Transaction Detail report. Go to the Reports menu, and enter the 1099 report to see the lists of 1099s reports you can generate.

 

Also, I've collected some articles where you can find further information about when preparing and filing your Federal 1099s with QuickBooks Online:
 

 

The Community is always here if you need anything else. Just post your concerns below. Take care and have a good one.

SarahannC
Moderator

When I'm paying 1099 contractors, do I have to utilize the "Prepare 1099s" button every time I pay a contractor, or just prepare 1099s come tax season.

Hi sudhirvenkat0-gm,


Hope you’re doing great. I wanted to see how everything is going about paying your 1099 contractors. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.


Looking forward to your reply. Have a pleasant day ahead!

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