cancel
Showing results for 
Search instead for 
Did you mean: 

Reply to message

View discussion in a popup

Replying to:
Moderator

Reply to message

Let me provide information about contractors paid electronically, caroline59.

 

Payments to 1099 vendors made via credit card, debit card, or third party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution reports these payments.

 

These financial institutions will be the ones to report the payments made to the contractors.

 

You can run an Excluded Payments by Vendor report to verify excluded payments.

  1. Select Expenses, then Vendors.
  2. Select Prepare 1099s.
  3. Go to the Preview 1099 and 1096 Information section and note the column titled Total 1099 Payments Excluded. You can select the total in this column to see an Excluded Payments by Vendor report, which shows transaction details. This will help you verify if payments should indeed be excluded.

For more information about the payments that you shouldn't report, review the IRS instructions for Form 1099-K and the IRS Third Party Reporting Information Center.

 

I'll be right here if you have more questions about the 1099 filing.

Need to get in touch?

Contact us