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PPPV1
Level 3

1099s for Contractors

If a contractor charged me sales tax for services they provided do I still need to provide them with a 1099?

If so, I have attempted to get a W-9 from them several times, but keep getting ignored. Any suggestions on how to go about getting that information short of harassing the heck out of them? [In case it matters, the service was modifying and adding to an existing fire sprinkler system. The total was >$600]

Thank you for any advice and knowledge!

Solved
Best answer December 23, 2020

Best Answers
Rea_M
QuickBooks Team

1099s for Contractors

Hello there, @PPPV1.

 

You're required by the U.S. tax law to file a Form 1099 (MISC or NEC) for contractors you've paid $600 or more in the previous year. Then, you'll have to provide a copy of the said form to them accordingly.

 

To get your contractor's W-9 information, I'd recommend contacting them directly. This way, they'll be notified and provide all the necessary details you need. Once acquired, you can add a contractor as a vendor if you haven't already. Here's how: 

  1. Go to the Payroll menu.
  2. Select Contractors.
  3. Click Add a contractor
  4. Enter your contractor’s info.
  5. Select Add contractor when you're done.

 

The next step is to track contractor payments for 1099s. You can refer to this article for the complete details: How to set up contractors and track them for 1099s in QuickBooks (Set up a contractor in QuickBooks Online section).

 

Once done, you can file your 1099s in QBO. Follow the steps to create and file your 1099s (1099-MISC and 1099-NEC) through this article: Create and file 1099s using QuickBooks Online. It also includes answers to the most frequently asked questions about the said topic.

 

I'm also adding this article to learn more about 1099 forms and how you can prepare for the 2020 tax season: What is a 1099 and do I need to file one?. It thoroughly explains the 1099-NEC and 1099-MISC filings through QBO.

 

 

Feel free to click the Reply button below if you have other payroll and 1099 form concerns. I'll be around to lend a helping hand. Take care always.

View solution in original post

2 Comments 2
Rea_M
QuickBooks Team

1099s for Contractors

Hello there, @PPPV1.

 

You're required by the U.S. tax law to file a Form 1099 (MISC or NEC) for contractors you've paid $600 or more in the previous year. Then, you'll have to provide a copy of the said form to them accordingly.

 

To get your contractor's W-9 information, I'd recommend contacting them directly. This way, they'll be notified and provide all the necessary details you need. Once acquired, you can add a contractor as a vendor if you haven't already. Here's how: 

  1. Go to the Payroll menu.
  2. Select Contractors.
  3. Click Add a contractor
  4. Enter your contractor’s info.
  5. Select Add contractor when you're done.

 

The next step is to track contractor payments for 1099s. You can refer to this article for the complete details: How to set up contractors and track them for 1099s in QuickBooks (Set up a contractor in QuickBooks Online section).

 

Once done, you can file your 1099s in QBO. Follow the steps to create and file your 1099s (1099-MISC and 1099-NEC) through this article: Create and file 1099s using QuickBooks Online. It also includes answers to the most frequently asked questions about the said topic.

 

I'm also adding this article to learn more about 1099 forms and how you can prepare for the 2020 tax season: What is a 1099 and do I need to file one?. It thoroughly explains the 1099-NEC and 1099-MISC filings through QBO.

 

 

Feel free to click the Reply button below if you have other payroll and 1099 form concerns. I'll be around to lend a helping hand. Take care always.

View solution in original post

PPPV1
Level 3

1099s for Contractors

Thank you Rea_M for all of that information.  While you didn't exactly answer the questions I asked, I appreciate you taking the time to answer.  After attempting to get a W-9 from that particular contractor for the last half year, I finally received the W-9 I needed today.  Based on your answer I'm assuming that my paying sales taxes to the contractor with his service payment is irrelevant to whether or not I need to provide a 1099.  I was just curious, as not all of the contractors I used charged me sales tax.

Thanks again. Happy Holidays to you and yours!

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