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chris118
Level 1

Will contractor payments made through Quickbooks Payroll automatically be tracked for each contractor? I don't see them matched to a Payee in the Banking feed

We started paying contractors via QuickBooks Payroll direct deposit. When reviewing these transactions in the "Banking" section, I was surprised that none of them are tagged to a contractor in the "Vendor/Customer" section. This is how we used to tag each payment to ensure they popualated in our year-end 1099s.
3 Comments 3
ChristieAnn
QuickBooks Team

Will contractor payments made through Quickbooks Payroll automatically be tracked for each contractor? I don't see them matched to a Payee in the Banking feed

Hi there, chris118.

 

QuickBooks will not automatically track the downloaded transactions in the Vendor/Customer section. You'll need to manually assign each entry to the contractors.
 
here's how:
 
1. Click the Banking. Then, Banking section.
2. Select the payment to open it.
3. From the Vendor/Customer drop-down arrow, choose the name of contractor. Take note that the name of contractor tag as vendor's name.
4. Hit the Add button.
 
If the downloaded transactions are not recorded in QuickBooks, you can add them to create the entries in your register. If the payments are already in the program, you can match them to avoid duplicates.
 
Please follow the steps below on how you add transactions:
 
1. Select the transaction and click it to expand the page.
2. Check recommended account category and the other information.
3. If everything looks correct, hit the Add button to record the transaction.
 
Here's how to match a transaction:
 

1. On the Left panel, select Banking.

2. Select the transaction and click to expand the transaction to review the details.

3. If the match is correct, Under the Action column, select Match.

 
See this article for further information about adding, matching, categorizing, and reviewing transactions: Add and match downloaded banking transactions: Download, match, and categorize your bank transactions in QuickBooks Online.
 
If you want to automatically categories a certain details you assign for specific vendor/customer or bank transaction depends the way you set up the criteria, I suggest creating a bank rule for downloaded transactions.
 
Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.​
chris118
Level 1

Will contractor payments made through Quickbooks Payroll automatically be tracked for each contractor? I don't see them matched to a Payee in the Banking feed

Hi,

 

Thanks for the reply, however it doesn't seem that QuickBooks is automatically tagging my contractors, at least not visible. Please see the attached, where the Payee section is blank. 

MirriamM
Moderator

Will contractor payments made through Quickbooks Payroll automatically be tracked for each contractor? I don't see them matched to a Payee in the Banking feed

It's good to see you back, chris118.

 

Thanks for the details. To track expenses and file 1099-MISCs for your independent contractors directly from QuickBooks, you need to setup Vendors for 1099. Then, be sure that you'd able to track payments to 1099 contractors. 

 

To setup Vendors for 1099, here's what you'll need to do:

 

  1. Click Expenses in the left menu bar and go to Vendors tab.
  2. Double click on the vendor to open for edit. 
  3. Click Edit at top right of screen.
  4. Enter the vendors tax ID number at Business ID No. field and check the box below Track payments for 1099
  5. Click Save

Check out below screenshots for your visual guidance:

setup vendor for 1099.jpg setup vendor for 1099 1.jpg.png setup vendor for 1099 2.jpg.png.jpg

 

Once you've entered transactions for that contractor, the payments made will be automatically track for 1099 payments. You'd also be able to match the payments from the downloaded bank transactions. 

 

To match downloaded transactions, you can follow the steps provided above by my colleague ChristieAnn.

 

I'm also attaching some articles below for more information about tracking 1099:

For future guide, check below reference to learn how to make forms 1099-Misc in QuickBooks Online and file them with the IRS:

 

Prepare and file 1099s.

 

You can get back to me anytime you have additional questions in QuickBooks by posting your response below. I'll do whatever it takes to ensure your concerns are addressed. Enjoy the rest of the day. 

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