How do I enter a 2021 contractor payment so I can issue them a 1099? They are not a vendor and I use QB Online payroll core.

It’s great to see you in the Community, margotns1.

Let me guide you in the right direction on how to enter the contractor payment in QuickBooks Online (QBO) Payroll Core.

The payroll service lets you add a contractor including their payments. When providing a 1099 form, make sure you’re processing the right one because there are certain 1099 forms used by the IRS. I suggest contacting the IRS first to check which tax form you’ll have to process for your contractor.

To learn what 1099 forms there are and how you can prepare for the tax season, you can browse to this guide: Get answers to your 1099 questions. It provides detailed information on who will receive a 1099-NEC or 1099-MIS.

Once you have the information handy, let’s go to the Contractors page to set up your contractor. It only takes a few clicks to get there.

Here’s how:

1. Tap the Payroll menu on the left panel and select Contractors.
2. Click the Add a contractor button to see more options.
3. This will open a window where you can input the supplier’s data.
4. From there, fill in the fields and tick the box for Email this contractor to complete their profile if you wish the supplier to input their information.
5. Press the Add contractor menu to save the changes.

After completing the setup process, let’s go ahead and input the payment. Follow the steps below to accomplish the task.

1. Go to the Payroll menu on the left panel and select Contractors.
2. On the Contractors page, choose the supplier you’re working on and click the Write check link to manually record the entry or pay via direct deposit.
3. In the Check window, fill in the fields with the correct payment information.
4. Click the Category drop-down to classify the entry.
5. Press Save or Save and print.

Once done, follow the steps below to process the 1099 forms. Here’s how:

1. Press the Taxes menu on the left panel and select 1099 filings.
2. Click the Let’s get started button to see more details.
3. This action will open the Review your company info screen.
4. Check the data recorded to make sure it’s correct.
5. Follow the on-screen instructions to complete the process.
6. Then choose Continue to e-file or No, I’ll print and mail.

These resources contain instructions on how to add suppliers and track them for 1099s. You’ll learn about the filing process, and change the amount shown in the tax forms.

• Set up contractors and track them for 1099s in QuickBooks
• Create and file 1099s using QuickBooks Online
• Understand which contractors need 1099s
• Fix missing contractors or wrong amounts on 1099s

Feel free to visit the Community if you have additional questions on how to process 1099 forms. I’m more than happy to answer them for you. Enjoy the rest of the day.

Thank you for your reply but I already tried that prior to sending my question.  QB Online Payroll Core would not allow me to put the check date of 12/31/2021.  I had to use today's date or later.  So I did that and I was not able to issue my contractor a 1099 for 2021.  I called and was on the phone for 2.5 hours with a representative, who was very sweet, but unfortunately he could not help me. I never had this issue when this was Intuit Online Payroll. This contractor was not tracked in the system last year, yet I cannot submit a 1099 for them? Why is that I used to be able to do that with Intuit Online Payroll but now in QB I can't? It really doesn't make sense to me.  I'm very disappointed.

Thank you for your reply but I already tried that prior to sending my question.  QB Online Payroll Core would not allow me to put the check date of 12/31/2021.  I had to use today's date or later.  So I did that and I was not able to issue my contractor a 1099 for 2021.  I called and was on the phone for 2.5 hours with a representative, who was very sweet, but unfortunately he could not help me. I never had this issue when this was Intuit Online Payroll. This contractor was not tracked in the system last year, yet I cannot submit a 1099 for them? Why is that I used to be able to do that with Intuit Online Payroll but now in QB I can't? It really doesn't make sense to me.  I'm very disappointed.

Thanks for coming here, margotns1.

I appreciate you for letting us know the details of your experience when issuing 1099's for your contractors. In this case, I suggest contacting our QuickBooks Payroll Team for follow-up check of the case made on your previous call. 

You can check out this article for our most updated contact information: Support hours and types.

Alternatively, you can manually submit the 1099's of the affected contractors outside QuickBooks.

Here's how:

1. From the 1099 E-File Service page, log in to your or sign up for your account.
2. Select Enter information.
3. Fill in the necessary information.
4. 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.
5.  Once completed, you can email them or print and mail them to your contractors. Then you can manually submit it to the IRS.

Check out this article to be  more familiar with using the QBO Payroll Core:

• See what you can get with QuickBooks Online Payroll Core
• New and improved QuickBooks Online Payroll lineup

Let me know if you have additional questions about this, or need further assistance. I'm here to help. Have a lovely day!