I need to print 1099 for designers (customers in QB) who we paid commissions to. They are currently customers in QB, do I have to also create them as contractors/vendors

Hi There @KaraWS.

Thanks for checking in for help with issuing 1099s to your designer. I’m happy to help.

In order to do this, you’d need to deactivate the customer profile and create a contractor profile in Quickbooks. Please note that the customer profile's name would need to change since the system does not allow duplicate names. Here's how:

1. Go to the Customers menu.
2. Select Customer Center.
3. Right-click a name in the left pane and choose Make Customer: Job(s) Inactive.

If for any reason you need to make this account active, simply use the first two steps and check Active Customers to All Customer. From then, right-click, locate the inactive profile, and select Make Customer: Job (s) Active. To create the contractor profile, follow the instructions below.

1. Click Vendors menu and then Vendor Center.
2. Select the New Vendor dropdown and pick New Vendor.
3. Add the necessary information and select OK once completed.

For more information about setting up contractors or tracking 1099, this article would be very resourceful.

Please let me know if you need any clarification or have any questions. I will be around to assist you.

Take care.

Thank you.  Is there any way to run 1099's for a customer?  Occasionally we sell furniture to Designers for their clients and will pay the Designer (our customer) a commission for the sale.  I have issued Sales Commission checks to them as Customers which total $600+ meaning I need to send them 1099's.  These checks have been cashed.  Is it possible to create 1099's for them without having to make them Vendors/Contractors in QB Online?

Welcome back @KaraWS.

Thanks for your question. There isn't an option in QuickBooks Online to issue a 1099 to a customer since, typically, you are receiving payments from customers not issuing them.

As a workaround, you could use our stand-alone 1099 service. This would allow you to enter the customer as a vendor but not affect your QuickBooks lists. You'd have to enter the information manually, but it would get the 1099s issued. Here are the details:

1. From the 1099 E-File Service page, log in to your or sign up for your account.
2. Select Enter information.
3. Enter your company information, then select Continue.
4. Enter your tax information, then select OK.
5. Enter your contractor information and values for the supported boxes, then select OK. Important: There are changes to the 1099 forms and boxes in 2021 for tax year 2020, so choose your forms carefully. Most businesses will choose “Nonemployee compensation, Box 1 on the 1099-NEC, but check with your accountant if you think you might have made other types of payments.
6. Review your 1099 forms. Select Add to continue adding more contractors, Edit to make any changes, or select Continue to proceed to the next step.
7. On the Pay for Service window, enter your credit card information, and select Approve to pay for the service.
8. Select the Print For Contractors or Print for your records buttons to view and print 1099 forms. Note: don’t forget to mail the forms to your contractors, we do not mail 1099s to contractors for you.
9. Place a checkmark next to contractors paid in prior years you also wish to create a 1099 for. Select Continue.
10. If you are ready to e-file, select Submit final forms.

Let me know if you have additional questions. I want to make sure we can get you what you need.

Thanks!