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Mathtutor4
January 10, 2025
Question

1099NEC

  • January 10, 2025
  • 2 replies
  • 0 views

For one of my contract laborers, the amount on the 1099NEC is shown as only his first payment rather than the total for the entire year. I had listed every payment to him as 'Contract Labor' and all the payments show up in the list of 'Contract Labor' on the P&L Statement, so why wouldn't the 1099NEC show the total?

 

    2 replies

    FishingForAnswers
    FishingForAnswers
    January 10, 2025

    @Mathtutor4  The most obvious explanation would be the type of payment, though with QBO, it's impossible to rule out the system simply malfunctioning.

     

    At any rate, how did you enter the payments?

     

    If the only payment by check or cash was the first one, there you go. Electronic payments do not go on a 1099-NEC, and electronic payments entered in any version of QB as such will not show up on the 1099-NEC, nor should they.

    B
    BabyB
    January 10, 2025

    Welcome to the Community thread, Mathtutor4. The 1099-NEC form will only report certain payment types. Allow me to provide more details about this matter.

     

    The IRS only requires you to report contractor payments made via cash, check, or direct deposit. QuickBooks excludes payments to 1099 vendors made by credit card, debit card, or third-party systems, as these are reported by financial institutions.

     

    If these payments are not made electronically, please check your payment records to ensure they are categorized correctly.

     

    To learn more about payment information, please visit this link: Understand which payments are excluded from a 1099-NEC and 1099-MISC.

     

    Once you are ready to submit your Federal and state 1099s, explore this material for the detailed instructions: Create and file 1099s with QuickBooks Online.

     

    Additionally, you can take advantage of our QuickBooks Live Expert Assisted services anytime if you require further assistance organizing your entries for an accurate record of your transactions.

     

    Let me know if you have more questions regarding 1099s by leaving a comment below. We're always around in the Community to offer all the necessary help.

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