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I'm having trouble getting 1099s done. I have my subcontractors set up as Cost of Labor. Could this be part or all of my problem?

 
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Re: I'm having trouble getting 1099s done. I have my subcontractors set up as Cost of Labor. Coul...

Thanks for joining our forum, @pbsquared55,

 

I'd be glad to share some information with processing your 1099 forms in Quickbooks Online.

 

Currently, we categorize sub-contractors as vendors. If you want to set them for 1099, you'll need to create a Vendor profile for them. Here's to do that in QBO:

  1. Click the Expenses menu.
  2. Go to the Vendors tab then select New Vendor.
  3. Complete the contractor's information.
  4. Make sure to add the Business ID No and mark the Track payments for 1099 box.
  5. Click Save.

Once done, you can now link the transactions to their profile, so you can start processing your 1099 report. To prepare your 1099s, follow the steps below:

  1. Hit the Expenses menu.
  2. Choose Vendors.
  3. Tap Prepare 1099s.
  4. Select Let's get started or Continue your 1099s.
  5. Follow the steps to prepare 1099s.

You can also check these steps in this tutorial: 1099 Setup.

 

Those steps should get you in the right direction. Let me know how the call goes by leaving a comment below. I'm always here to provide further assistance. Have a wonderful day!

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Re: I'm having trouble getting 1099s done. I have my subcontractors set up as Cost of Labor. Could this be part or all of my problem?

@pbsquared55 

 

maybe, if cost of labor is a cogs type account then yes that is the problem - outside contractors are not cogs

 

you pay a contractor using an expense account, that expense account has to be mapped to block 7 of the 1099 in 1099 set up.  ONLY payments to the contractor that use that account, and are paid in cash or check, will be totaled by QB for 1099 reporting