How can I correct an amount for contractor payment for this month's payroll?

Is there anyway to correct an amount on the contractors 1099 to reflect whatever you want it to say regardless of what the transactions say? Example: Currently I have contractors that have past due bills with me. So on their next check I will withhold the past due bill. I need have to note this in excel where I keep up with it. Then at the end of the year I have to send a 1099 for what Excel says because that was the true amount the contractor got paid BEFORE I took out their past due bill. I would love to use quickbooks for 1099s but I have not found out a way to edit the amount on the 1099 before sending it out without editing a transaction. 

Hi there.

Correcting 1099s in QuickBooks Online is possible. However, there are specific limitations as to where you can only rectify them. I'm here provide you more information about them.

The 1099s generated in QuickBooks pull directly from the payment transactions recorded in the system, as the IRS requires these forms to reflect actual payment data. Currently, you cannot make manual edits to the amounts on a 1099 without adjusting the underlying transactions in QuickBooks Online.

For your scenario of withholding past-due bills from contractor payments, you can consider recording the gross payment and the deduction separately through QuickBooks. This way, the 1099 will accurately report the gross earnings while still accounting for the withheld funds in your records. Consulting with your accountant can help you determine the best way to record these transactions to meet IRS requirements.

Additionally, you can consider modifying your chart of accounts for your 1099 filings in QuickBooks Online to help correct your 1099s.

Moreover, feel free to visit this article to learn more about 1099s: Get answers to your 1099 questions.

Let QuickBooks prepare for you in streamlining your payroll process. If you're interested, feel free to visit this page: Explore QuickBooks Payroll.

If there’s anything else you’d like to discuss or specific details you’d like clarified about setting up your 1099s in QuickBooks, feel free to share. I'm always here to help.

Yes that method would work if I was issuing a check, I could just show the deduction on the check I am cutting. However when I issue a direct deposit to my contractor there is no where to show a deduction like there use to be. Quickbooks took that feature away many years ago. They need to bring it back. 

Thank you for coming back to us, @jdcoon2002.  I see that you are working on adjusting 1099 amounts to accurately reflect the total earnings of your contractors, especially considering past-due balances. It's indeed helpful to deduct past amounts the contractor owes directly in a Direct Deposit (QBO) payment while still reporting the gross amount on the 1099 form. I'm here to help you send your comments and suggestions to our product engineers so they can consider re-adding them in the future.

As you've experienced, we can only pay a contractor with the net amount currently through the Pay contractors option in QBO. Since the software must accommodate various business needs, I encourage sending a feature request through the feedback option.

1. Go to the Gear icon.
2. Select Feedback.
3. Enter your comments and suggestions.
   

    

For now, consulting with your accountant or a QuickBooks ProAdvisor can help ensure that all withholdings and gross amounts are accurately recorded and reported on 1099 forms within QBO.

I understand that manually adjusting amounts in an external spreadsheet can be challenging, and I hope the information provided above assists you in achieving your goal. If you have additional questions in the meantime, feel free to click on the Reply button. We're committed to offering ongoing support.