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Alicia210
March 3, 2023
Question

1099 Direct Deposit

  • March 3, 2023
  • 1 reply
  • 0 views

I want to set up direct deposit for a few of my subcontractors. Not all of them will use this service. Will the contractors I have to pay via check, venmo, etc. still have the electronic filing offered for the 1099's since I will be paying for the service? Will their information be sent electronically for me to the IRS, same as the contractors I am paying by direct deposit? 

1 reply

M
MirriamM
March 3, 2023

Hello there, @Alicia210.

 

Any expenses made via credit card, debit card, or third-party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations since the financial institution reports these payments, so you don't have to.

 

To further guide you on track 1099, I recommend checking these articles:

 

 

To help run your business with QuickBooks, here's a link that provides video tutorials that you may find helpful in the future: Learn about QuickBooks Online with how-to videos. 

 

Fill me in if you have other 1099 concerns or questions. I'll get back to you and ensure you're taken care of.

A
Alicia210Author
March 3, 2023

That's not a great feature. I pay some of my subcontractors by other systems based on the way they bill. However, the bank account it comes from is the linked bank account I have on QuickBooks. If this is the case it would mean even though I enter the bill pay from my linked account, I must file 1099 via hardcopy and electronically through QuickBooks. 

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