Let's make sure to sort this out, Inc.
In the normal process, only those contractors you paid above the annual $600 cash threshold will get a 1099. You'll want to see which contractors didn't meet the threshold by following the steps below:
- Go to Reports, then select Vendors & Payables.
- Select 1099 Summary.
- In the 1099 Options dropdown menu, select Ignore thresholds.
- If you see the Vendor, they have not met the threshold.
- If this is a 1099 Vendor using 1099 Accounts, you need to enter more transactions or change the thresholds.
- Go to Edit, and select Preferences.
- On the Preferences window, select Tax:1099 from the left pane, then select Company Preferences tab.
- Select the link and click here next to If you want to map your accounts to boxes on form 1099-MISC.
- QuickBooks 1099 wizard page will come up. In the Map Accounts step, select Show IRS 1099-MISC filing thresholds link.
- In the 1099-MISC IRS Thresholds window, double-click the Thresholds column for the appropriate 1099 Box.
NOTE: The screen will display; Your settings do not match the current IRS thresholds message in red. Select Reset to IRS Thresholds if you want to follow the IRS-mandated threshold and add more transactions instead.
- Click Save & Close.
Please know that credit card payments are not included. These payments will be reported by the financial institution and should not be included in the company's 1099 values.
QuickBooks also uses the expense accounts you mapped to report 1099 transactions. If the payment still goes to uncategorized income, ensure you're paying contractors from the right expense account. When your amounts are off, you can review the contractor payment transactions and accounts associated with them. For more details, check out this article for reference: Troubleshoot Missing Contractors Or Wrong Amounts On 1099s.
Additionally, to learn more about each box, or if you're unsure what payment types you make to contractors, check out this article: Understand Payment Categories For The 1099-MISC And 1099 NEC.
You can always reply to us again if you need anything else with managing your vendors in QBDT. We're always here to guide and assist when you need help. Have a good one!
