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npoconsultant
January 25, 2022
Question

1099 for third party payee

  • January 25, 2022
  • 1 reply
  • 5 views

My client’s QBO was set up to make payments to lenders (vendors) on behalf of grant recipients (expense accounts). The grant recipients need 1099s each year for the payments made on their behalf. How should their QBO be configured to make the 1099 function work?

1 reply

D
DebSheenD
Level 5
January 25, 2022

Hello, npoconsultant.

 

Welcome to the Community. I know a way on how you can add your contractors to map their payments and account in QuickBooks Online (QBO) by adding them manually. Here's how:
 

We can simply uncheck the box in which you can link their email when adding them as contractors. 
 

  1. Choose Workers or Payroll and then click Contractors.
  2. Click Add a contractor.
  3. Enter the contractor's Name.
  4. Uncheck the box that says "Email this contractor to complete their profile..."
  5. Tap Add a contractor.
  6. Click Add and choose whether the contractor is an individual or a business, then enter their information.
  7. Hit Save and close.
     

For more tips about managing contractors in QuickBooks, I recommend checking out this link: Add, edit and inactivate contractors.

 

If you have any other follow-up questions about 1099s, please let me know by adding a comment below. I'm more than happy to help. Have a good one!

N
npoconsultantAuthor
January 25, 2022

Thank you for your response. The problem is that the payment is made to a vendor that is not the recipient of the 1099. Each grant recipient is an expense line, and they need to receive the 1099.

K
Kurt_MQuickBooks Team
QuickBooks Team
January 25, 2022

Thanks for the additional information, @npoconsultant. Allow me to share what I know about your query.

 

You can track payments to a vendor by going to their page and then selecting the Track payments for 1099 check box.


To begin, these are the steps:

 

  1. Go to Expenses Tab.
  2. Click on Vendor.
  3. Select the vendor you want to track and then open their profile.
  4. Select and check the Track Payments for 1099 checkbox.
  5. Once done, click Save.

 

Refer to this article, for more information about how to set up contractors and track them for 1099s in QuickBooks Online.


You can also consider contacting our Payroll support Team for additional assistance. 

 

If you have any more questions about this topic or have other concerns with the features in QuickBooks, post here again. I’m just a click away. Keep safe and stay hydrated.

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