I do see a different charge in paying a vendor and contactor direct deposit. Fees seem to be different/

We have a Vendor that is also listed as a Subcontractor.  Both of them have checks written in QB online. Now trying to process 1099's but QB is rejecting the 1099s because they both have the same EIN number. How can we solve this?

I have this info marked as you recommend but for some reason I am not able to populate my 1099's.  Any tips?

Thanks for joining this conversation, @chrissyhuett.

I'm here to help make sure that you can populate 1099s in QuickBooks.

Just to clarify, are you using QuickBooks Online (QBO) version? If so, are you getting any error messages when pulling up the Form 1099? You can leave a comment below to add more details. This will help me make sure that I can provide you with the best resolution for your concern.

I'll keep an eye to your response, @chrissyhuett. Have a good one.

Yes, I am using QBO.

I get an error message that says "there are no vendors that match that criteria".  I know he was paid over $600 and I also have the box marked that says to track info for 1099.

Thanks,

Chrissy

Hello there, @chrissyhuett.

Allow me to join the thread and help share information about preparing 1099 in QuickBooks Online (QBO).

There are several things to check when preparing 1099:

• Vendor is marked as 1099
• Amount reached the threshold
• Payment method should be Cash or Check
• Account was properly mapped

Make sure to select the correct account in Box 7 so it will display the expected amount.

If the same thing happens after following the steps provided, I suggest contacting our Support Team to check and investigate this further.

Here's how to contact support:

1. Go to: https://help.quickbooks.intuit.com/en_US/contact.
2. Choose your QuickBooks product at the upper right.
3. Select a topic.
4. Click on the green button that says Get Phone Number.​

Please let me know if you have any other concerns about preparing 1099 in QuickBooks. I'm always here to help!

Well in QBO it did not show up in Contractors and it was checked correctly in Vendor as a 1099 to be issued; however the 'vendor' never showed up as a contractor and has just now been found that a 1099 has not been issued because of that.  I get more and more frustrated with QBO the more I have to figure out its 'problems'.  

Thanks for joining us here in the Community, @Utfan4him.

I'm here to get you pointed in the right direction to get assistance with this 1099 concern.

If you have already verified that the accounts correctly mapped for your vendors and the issue still persists, I'd suggest giving our Customer Care Team a call.

They have the necessary tools like screen-sharing to work with you to find out what exactly may be causing this issue.

To reach them:

1. Sign in to your QuickBooks Online company.
2. Select Help at the top right.
3. Select Contact Us to connect with a live agent.
4. Enter your concern.
5. Click the Green Phone button to get the phone number.

Also, I have here some helpful articles about assigning accounts to 1099 and its troubleshooting for your future reference: 

• Assign accounts to 1099-MISC categories.
• 1099 Troubleshooting.

Feel free to reach back out to me if there's anything else you need about this concern. Have a great day!

https://www.irs.gov/pub/irs-pdf/fw9.pdf

https://www.irs.gov/pub/irs-pdf/p1281.pdf

I believe the addition of the Workers/Contractors tab was a nice addition to QBO. It is good to be informed on the IRS rules as a business owner working with 1099 eligible contractors.

I've been a QB user for years and years and as my business has grown I've turned over all accounting to my CFO. I needed to get into QB to check a few things and discovered the whole "worker/contractor" issue. I hate it. I hate it SO MUCH. Because in professional services there is a very big difference operationally between the guy who works on our server (he's a VENDOR, but he gets a 1099 because he's a small business) and our CONTRACTORS. A contractor is someone I bring on to handle a specific function of a project and they come and go based on project needs. These are not. ever. the. same. thing. A contractor is someone who works as part of your team, but they are not an FTE and therefore have different work structure. A vendor is never a part of your team because you're paying them for a service. I hate this so much. If I want to see what we've paid our contractors for the year or run any kind of report I have to overlook all the small vendors we use for specific services - like my plumber! This is so dumb, QB. Did no one every think to ask a professional services firm what they thought about this? 

I appreciate you for sharing your feedback, @mnewcome.

A vendors are those people or companies that you pay money to, such as a store, utility, landlord, or subcontractors who do work for you. For a vendor to qualify as contractor, they should meet the following criteria:

• Vendors are paid via cash or check.
• Payments should reach the $600 or more thresholds for 1099.
• Check if the accounts used on the vendor’s transactions are mapped for 1099. This includes the accounts of the items used on the transactions.

QuickBooks defines an independent contractor as someone you give a 1099-MISC to. You pay them with regular checks, and you do not withhold taxes on their behalf.

I can see how setting a separate dashboard specific to vendors and contractor with clear distinction would be helpful for both you and your business. I’d be glad to forward these suggestions to our Product Engineers for consideration in future updates. 

Feel free to visit us here in the Community if you have other questions. I'm always here to help.

So I understand that if it is marked contractors it will automatically go into vendor list, if I want that person to get a 1099 just mark the box.  What about tax id/social for contractor/vendor is that necessary to send a 1099?

The TIN is required when filing 1099, atmcontracting.

The IRS also requires this information to track payments. It can be either a Social Security Number (SSN), or an Employer Identification Number (EIN). In addition, we're unable to electronically file the 1099 form if it's missing.

Here's a guide about Form 1099-MISC. You can also read these articles for more details:

• Common questions about 1099s

• 1099 Invalid Information (Invalid tax ID)

I'm always here if you need more help about 1099.

I have been using Quickbooks since 1996 and finally moving to QBO on 1/1/2020.  Your answer about contractors may not apply if the contractor is a foreign business and the work is done outside the US. I read this online -- "As long as the foreign contractor is not a U.S. person and the services are wholly performed outside the U.S., then no Form 1099 is required and no withholding is required. ... No Form 1099 then needs to be filed for payments to foreign persons."

So - I still don't know what the difference is as far as QB's is concerned?  Why both?  Being a software app - and an ever changing one - how the program pulls info from these categories is important as it will determine how we users classify vendor and contractor.  So what is the endgame?  This is a need-to-know.

Hi there, suzannek.

Categorizing the person as contractor or vendor is important so QBO can accurately help track payments for tax filings.

If the person works for you as an independent contractor, you should set up that person as a vendor. The general IRS rule is that an individual is an independent contractor if you have the right to control or direct the result of the work but not the means and methods of accomplishing the result.

An independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement. Unlike employees, independent contractors do not work regularly for an employer but work as required.

If a 1099 vendor is missing from the list, you can make them eligible for a 1099. Please check this article on how to perform the steps: Add contractors or vendors when preparing 1099s.

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

I have a contractor with payments over the $600 threshold, who doesn't show on my 1099 list! What am I doing wrong?

Good evening, @VF1.

As my colleague @ChristieAnn stated, you can make them eligible for 1099s by following the steps provided in the article she hyperlinked above. If you've followed these steps and you still can't add your contractors, I suggest getting a callback from our Customer Support Care Team. They have the tools to do a screen share with you and help you get the contractors added correctly. Here's how:

1. Choose the Help (?) button.
2. Select Contact Us. 
3. In the box, type Help with 1099 Contractors. 
4. Pick Let's Talk.
5. Press Get a Callback and enter your contact information.

One of our agents will contact you shortly and help get your contractors on your 1099s.

Feel free to drop a line below if you have any other questions. Have a wonderful Thursday!

Hi, 

can multiple entities share vendors database in QB desktop? we have 5 entities set up under one QB subscription. there are vendors for more then one entity. I just wonder if there's a way to share the vendor database instead of adding the same vendor to each entity.

Thanks,

Hello there, @Orange Cat.

Currently, the option to share the vendor's database to multiple entities in QuickBooks Desktop (QBDT) isn't available. You need to manually add the information per entity. With this, you can export your vendor list to an IIF file from one entity and import it to the other.

To export, here's how:

1. Go to the File menu.
2. Select Utilities.
3. Choose the Export option, then select Lists to IIF Files.
4. Select the Vendor List box and click OK.
5. Browse the location where you want to save your file and click Save.

I've attached a screenshot below that shows the first four steps.

Once done, open the other entity and make sure to log in as the Administrator and in a single user-mode to import the vendor file. Before doing so, you'll have to back up your company file for future use. When you're ready to import, here's how:

1. Go to the File menu
2. Select Utilities.
3. Choose Import and click IIF Files.
4. Follow the on-screen instructions to complete the process.

I've attached a screenshot below that shows the first three steps.

After that, I'd recommend pulling up the Vendor Contact List report. This is to make sure the process above is successfully executed. Just go to the Reports menu, select the Vendors & Payables option.

Additionally, in case you want to export and import vendor list using the MS Excel file, you can refer to this article: Import or export MS Excel files.

Don't hesitate to leave a comment below if you have other concerns with managing your vendor database in QBDT. I'd be happy to help. Take care always.

Hello,

This new "contractor" feature, versus "vendor" is very confusing.  I am attempting to pay a vendor through Melio bill pay; however, QBO is prompting me to issue payment through the "contractor" screen.  However, my client does not have the vendor's bank account information for a Direct Deposit and only checks are only issued through Melio - there is no physical check stock.  

We have over 100 "vendors" and pay various ones each week through Melio.  This works very, very well. 

I cannot find the reason, and therefore the remedy, for this one vendor to be reclassified as a contractor and then Melio is NOT a payment option to pay contractors.

Please advise... 

Hi Julie73,

I understand that the option will be convenient on your part. However, there is no other reason than it works as designed. You can pay your contractor with cash or using a different form of payment except for credit cards and other electronic payment channels.

You may want to send feedback about this. Just click on the Gear icon and choose Feedback.

Let me know if you have other questions in mind.