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October 10, 2024
Question

Is there a way to do a 1099 while under the employee tab or does it have to go under contractor?

  • October 10, 2024
  • 2 replies
  • 0 views
Trying to add employees but have them do a 1099 instead of having them under the contractor tab.

2 replies

October 10, 2024

If you want to add an employee who will receive a 1099, you'll have to classify them as independent contractors and add them under the Contractors tab, Gustavo. Allow me to explain further.

 

To start, please know that a 1099 is a form used for non-employees, such as independent contractors, freelancers, and vendors, not for regular employees.

 

With this, it's not advisable to add your employees under the Employees tab and have them 1099. Instead, you can add them under the Contractors tab.

Here's how:

  1. Navigate to Expenses, then select Contractors.
  2. Click Add a contractor
  3. Enter their information, or select the Email this contractor checkbox so they can fill it out.
  4. Once done, click Add Contractor.

 

 

However, if your employee is considered a regular employee, you can include them in the Employees tab and have them fill out a W-2 instead of a 1099.

Let me guide you through the process:

  1. To get started, navigate to Payroll and then go to Employees.
  2. Click on Add an Employee.
  3. Fill in their name and email address. If you want them to input their personal, tax, and banking information, choose Yes to allow the employee to enter their details in QuickBooks Workforce. Doing this will trigger an automatic email invitation to QuickBooks Workforce, enabling your employee to provide their address, Social Security number, W-4, and banking info.
  4. Once you've entered the necessary details, select Add Employee.
  5. Click Start or Edit in any section to complete the remaining employee information.
    • Note: If employee self-setup is enabled, some fields in the Personal Info, Tax Withholding, or Payment Method cards won’t be editable. If you need to change those sections, turn off Employee Self-Setup in the Personal Info tab.
  6. After filling out any tab, remember to click Save to secure the changes.

 

Additionally, you might want to check out these articles to learn how to manage 1099 or W-2 and W-3:

 

Keep me posted if you have further concerns about managing your employees. Happy Thursday. 

BigRedConsulting
October 10, 2024

RE: Trying to add employees but have them do a 1099 instead of having them under the contractor tab. 

 

Employees need to be run through payroll and get a W-2.