An existing vendor became a contractor but was paid before the "Track payments for 1099" box was checked on her vendor description. How to fix the payment?

Hello there, finance139.

You might want to delete the payment created before you selected the Track payments for 1099. Then, recreate the payment. Pull up the reports afterwards and you'll now see the payment. 

For additional information, you can refer to this article: Create and file 1099s using QuickBooks Online.

Please check this article to see some issues you may encounter while preparing 1099 and how to fix them: Troubleshoot common 1099 issues.

I'm always around to help you out. Just let me know by commenting below. Take care!

Additional information: the person was paid using Bill.com.  Can I really delete and re-create the payment without screwing up the payment information that is already associated with the Bill.com transaction?

Thanks for the additional information, @finance139.

The IRS doesn't allow electronic payments to be reported on Form 1099-MISC or 1099-NEC. You don't have to report payments you made to your contractors electronically. The payment companies will report those payments. QuickBooks Online automatically excludes these for you.

You can read through this article to see what and when you need to report: Create and file 1099s.

I've also got some resources that you might need about handling 1099s: 

• Common questions about 1099s
• Understand payment categories for the 1099-MISC and 1099-NEC

We're always here if you need more help with tracking 1099 payments. Happy Holidays!

Your answer doesn't solve my problem.  If Bill.com is going to report their payments to my contractors, made on my behalf, they still will not know that this particular payment should be included in their report.  As far as they know, the payment was made to a Vendor.  How do I correct this?

Appreciate the update, @finance139. I want to ensure you're able to correct these payments.

Since the issue persists, I recommend contacting our Customer Care Support. You can work with one of our specialists in changing how these payments are reported. I'll show you how.

1. Go to Help.
2. Select Search.
3. Click Contact Us.
4. Enter Payments is not generated in a report in the What can we help you with? field.
5. Select Start a conversation or Have us call you.

Reaching out to our Customer Care Support is best during business hours, 6 AM-6 PM PT Monday-Friday. You'll want to contact our team tomorrow to resolve the problem at hand.

I'm adding a relevant link to help you out with generating the correct 1099s: Understand which Contractors need 1099s.

Post again if you have other payroll forms concerns in QuickBooks 1099. I'll be right here to help anytime. Take care always!