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skylined77
June 7, 2024
Question

I purchased QBO for 1099 Payroll but contractor cant add ITIN

  • June 7, 2024
  • 1 reply
  • 0 views

I have recently purchased the subscription for contractor payroll, but I have a foreign national with an IRS issued ITIN who I added as a contractor, when they were emailed the W9 from intuit, there isn't a spot to enter this. It asks for them to start as a SSN self employed or business EIN. Which option would they choose so they can enter their ITIN and finish the W9 and I can start paying them via direct deposit. 

 

Thanks!
AD

1 reply

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Irene R
June 7, 2024

Welcome to the Community, Skylined. I'm here to provide details regarding adding international contractors to QuickBooks Online (QBO).

 

International contractors are not classified as 1099 workers, as the 1099 designation specifically applies to independent contractors based in the United States in accordance with the IRS code. Instead, international contractors fall under different tax and labor regulations. Furthermore, you can utilize the Bill Pay feature of QBO to conveniently and securely manage payments to your international contractors.

 

Correspondingly, since your contractor is a non-US taxpayer who receives US income, they must complete the W8BEN tax form.

 

In addition, QBO has a multi-currency feature that makes it easy to record foreign transactions without needing currency conversions. You can scan this article to know more: Set up and use Multi-currency in QuickBooks Online.

 

Keep me posted if you need help working with your contractors with their W9 Forms in QBO, Skylined. The Community will always be here to assist you at any time of the day. Keep safe!

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skylined77Author
June 7, 2024

Hi Irene,

 

thanks so much. The only question I have is at the end of the year when running their 1099-NEC, how would this work since the SSN would be a dummy number, is there a way to manually enter their TIN so they can use it with their tax preparer. 

thanks again,

AD

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Jelayca V
June 8, 2024

I can see the importance of completing the W9 form of your overseas contractor, @skylined77. Let me chime in and provide you with an alternative approach regarding this matter.

 

Please know that there has been an update to the information provided by a colleague. As per the updated information, international contractors are not classified as 1099 workers. This classification is specific to independent contractors based in the United States. Therefore, the process of running a 1099-NEC form for an international contractor with a dummy SSN or EIN would not be applicable.

 

Instead, you can consider utilizing the Bill Pay Feature in QuickBooks Online (QBO) to secure and handle the payments of your international contractors.  

 

However, please be aware that as a non-US taxpayer who receives US income, your contractor should still complete the W8BEN tax form to certify their foreign status and claim any tax treaty benefits.

 

If you want to learn about entering exchange rates so you can use them for foreign currency transactions in QBO, you can find more information in this article: Enter and use your own exchange rates in QuickBooks Online

 

Please feel free to reach out to me if you have further questions about contractors' W9 forms in QBO. I'd be more than happy to assist you. Have a great day. 

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