I am paying an individual set up with a TIN/EIN and operates as a business. When I try to run the 1099, it says his TIN is an error. Does this person need a 1099?

Hi there, Kent.

Yes, you still need to issue a 1099. If you paid them $600+ via cash, check, or ACH, a 1099-NEC is required regardless of whether they use an SSN or an EIN. The only common exception is if they are a C-Corp or S-Corp.

There are possible causes why you're seeing the TIN error. QuickBooks validates TINs against IRS rules, and the issue may stem from incorrect formatting, such as extra spaces, wrong dashes, or not exactly 9 digits. It is also possible that the same TIN already exists on another vendor profile, or that the legal name in QuickBooks doesn't match what the IRS has on file for that TIN. Another possibility is that an SSN was entered when it should be an EIN, or vice versa.

To troubleshoot this, you can start by asking the contractor for their W-9 form or IRS EIN assignment letter. Confirm the exact legal name and TIN as the IRS has it on record, and check whether it's an EIN or SSN to make sure the correct type is selected in QuickBooks.

Once verified, you can update the vendor profile in QuickBooks:

1. From All apps, select Payroll, then select Contractors.
2. Find and select the contractor's name. Select Edit contractor.
3. In the Tax ID field, re-enter the Tax ID as 9 digits with no dashes or spaces (for example, 123456789).
4. Ensure the Legal Name matches the W-9 exactly.
5. Confirm that Track payments for 1099 is checked.
6. Click Save.

Refer to this article for additional guidance on how to file 1099s with QuickBooks Online: Create and file 1099s with QuickBooks Online.

If you have any additional questions or need further assistance with QuickBooks, please feel free to reach out. We’re here to help you.