Quickbooks Online missing contractors for 1099-MISC

Mark777 · ‎January 14, 2021

I just spent an hour with Quickbooks tech support trying to get all of my contractors to show up on the 2020 1099-MISC, but was unable to get it to work. I verified the 1099 box was check in the vendor details, that the amount exceeded the $600 threshold and had a valid payment type (check), and that I selected the expense account on the 1099 configuration screen. On the "review" screen, the missing contractors show up on the "1099 contractors below threshold" list, and the report show Total Payment and Director Sales amounts higher than $600 with nothing excluded. Seems like Quickbooks is broken. For entertainment, see the transcript from my tech support session.

Rea_M · ‎January 15, 2021

Hello there, @Mark777.

When mapping your 1099-MISC in QuickBooks Online (QBO), you'll have to make sure the $600 threshold is mapped according to the provided payment categories by the IRS. You may have mapped your payments to the incorrect box number that's why the contractors are listed under the 1099 contractors below threshold section. The non-employee compensation should now be categorized under Box 1. You can learn more about it through this article: Understanding payment categories for the 1099-MISC and 1099-NEC.

Let's go back to the Categorize payments to contractors (or 1099 vendors) page, select the appropriate box (Box 1), and map it to the correct account. Here's how:

Go to the Expenses menu.
Select Vendors.
Click Prepare 1099s.
Choose the Continue your 1099s button.
Select Rents under the Most common payment types section, then choose the appropriate account.
Click Next to continue with the process.

After creating your 1099s, you can continue by e-filing them in QBO. You can complete the process starting on this article's Step 4 section: Create and file 1099s using QuickBooks Online.

Let me know how it goes. For further concerns about creating and filing 1099-MISC in QBO, you can drop a comment below. I'm just around to help. Take care always.

View solution in original post

Adrian_A · ‎January 14, 2021

It isn't the kind of experience that we want you to have with us,

Mark777.

I appreciate the details and the screenshot you've added.

Let's make sure that we've selected the correct expense account when paying your contractors. It can also be the reason why you're unable to see them on the list. Let me guide you with these steps:

Click the Reports tab.
Enter and select Transaction List by Vendor.
Click Customize.
Set the Report period to Last Year or Last Calendar Year.
Go to the Rows/Columns section. Click the Change columns link, then put a checkmark on the Split box.
Go to the Filter drop-down.
Tick the Vendor field and then select the 1099 vendors.,
Click Run report.

Afterward, go to the SPLIT column. If you see SPLIT, select the transaction to see details on what accounts were affected.

When you're ready to file their 1099s, you can check this reference: Create and file 1099s using QuickBooks Online.

Let me know how these steps work on your end. I'll be here to help you out!

Mark777 · ‎January 15, 2021

I verified I selected the correct expense accounts (again). There are still no 1099s generated for several vendors. They ARE listed under "1099 contractors below threshold", but as you will see on the attached screenshot their direct sales are well over $600 and nothing is excluded.

Rea_M · ‎January 15, 2021

Hello there, @Mark777.

When mapping your 1099-MISC in QuickBooks Online (QBO), you'll have to make sure the $600 threshold is mapped according to the provided payment categories by the IRS. You may have mapped your payments to the incorrect box number that's why the contractors are listed under the 1099 contractors below threshold section. The non-employee compensation should now be categorized under Box 1. You can learn more about it through this article: Understanding payment categories for the 1099-MISC and 1099-NEC.

Let's go back to the Categorize payments to contractors (or 1099 vendors) page, select the appropriate box (Box 1), and map it to the correct account. Here's how:

Go to the Expenses menu.
Select Vendors.
Click Prepare 1099s.
Choose the Continue your 1099s button.
Select Rents under the Most common payment types section, then choose the appropriate account.
Click Next to continue with the process.

After creating your 1099s, you can continue by e-filing them in QBO. You can complete the process starting on this article's Step 4 section: Create and file 1099s using QuickBooks Online.

Let me know how it goes. For further concerns about creating and filing 1099-MISC in QBO, you can drop a comment below. I'm just around to help. Take care always.

Our IdeaWorks - Ivy · ‎January 18, 2022

@Mark777 was your issue ever solved? I was on the phone for 2 hours with QB Tech Support and they do not know the issue.

Mark777 · ‎January 21, 2022

This was resolved by selecting box 1 Nonemployee compensation (1099-NEC) instead of box 7 (1099-MISC)
The tax rule changed last year. Prior to 2020, if you were a freelancer or your small business hired contracted work, you either issued or received a 1099-MISC. Now, the IRS has introduced the new Form 1099-NEC, a new form just for reporting independent contractor income (officially known as “non-employee compensation”). See https://bench.co/blog/tax-tips/1099-nec-vs-misc for details.

elp5 · ‎January 31, 2022

we are also having the same issue. After following all of the instructions in this thread we are still not able to get contractors that ARE over the threshold to move to the right category to get 1099s to print. Anyone have a resolution?

Thanks!

CharleneMaeF · ‎January 31, 2022

Thanks for updating us on the steps you've performed to resolve the issue, elp5. I know it's rough when your contractors aren't showing on the right category on your 1099. I'm here to help you with that.

Aside from choosing the correct expense account, you'll have to make sure that the Track payments for 1099 box is ticked in your vendor's profile. For your visual reference, I've attached a screenshot below.

Also, if you paid your vendors with a credit card, debit card, gift card, or PayPal, I'd suggest using a different payment method. These transactions will be excluded from the 1099 calculations.

For more details about this, please see this article: Fix Missing Contractors or Wrong Amounts on 1099s.

If the issue persists, I'd suggest accessing your account via a private browser. This doesn't use the existing cache files, which makes it a good place to determine if this is a browser-related issue.

Here are the keyboard shortcuts:

Safari: Command + Shift + N
Google Chrome: CTRL + Shift + N
Mozilla Firefox or Microsoft Edge: CTRL + Shift + P

Once signed in, check if your contractors are now showing correctly. If it does, let's clear the browser's cache. This removes its stored files to ensure the program performs efficiently.

You can also access your account using other supported browsers. They'll provide the best and most secure experience with QuickBooks.

If none of these fixes the problem, I'd suggest contacting our QuickBooks Support Team. They're equipped with tools to check the cause. It'll also allow them to submit a ticket to our engineering team to alert them about the issue if necessary.

Additionally, I've included these articles that'll help you in preparing and filing your 1099s. This ensures you're able to file them on time:

I'm only a post away if you need more help in managing your 1099, elp5. It's always my pleasure to help you out again.

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Quickbooks Online missing contractors for 1099-MISC