Skip to main content
A
Alejandra1
January 17, 2019
Question

How can I change a vendor to a contractor?

  • January 17, 2019
  • 2 replies
  • 0 views
Original commenter did not share additional details

2 replies

K
KhimG
January 17, 2019

Hi there, @Alejandra1.


Thanks for dropping by the Community. I’m here to help make your vendor a contractor in QuickBooks Online.


You can change the designation by following the steps below:
1.    Go to Expenses and choose Vendors.
2.    Select the vendor by clicking the name.
3.    Click the Edit button at the top of the screen.
4.    On the Vendor Information screen, place a check mark on the box next to Track payments for 1099.
5.    Hit Save.


 Once done, the vendor will now show under the Contractors tab.

 

 

 


That should get you pointed in the right direction. If you have additional questions working on the program, feel free to reach out to me. I’ll be here to help. Wishing you the best!

A
Alejandra1Author
January 18, 2019

This is good information BUT my following issue is: when finalizing the 1099s, the vendors "converted" as you suggested do not appear in the final  1099 list. The only ones that appear are the "contractors" and not the "vendor" with a mark in "track for 1099" 

How can I enter those vendors-contractors in the 1099s?

K
KhimG
January 18, 2019

Thanks for getting back to me, @Alejandra1.


I can help make the vendor marked as eligible for 1099 appear on the form.


Since you’re done with the first step in getting their name on the list. Next would be to make sure that the contractor (vendor) meets 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.


Here’s how to map the accounts:
1.    Go to Expenses on the left panel and select Vendors.
2.    Select Prepare 1099s next to New Vendor on the upper right-hand corner.
3.    Click Let’s get started or Continue your 1099s.
4.    Complete your company details, then click Next.
5.    Check the box for Box 7: Nonemployee Compensation.
6.    Choose all the accounts that were used on the transactions in the drop-down.
7.    Hit Next, then follow the prompt to finish preparing 1099s.

 

 

 

 


Refer to this article for more details: Why are some contractors missing from my list of 1099 vendors.


That should do it. Please let me know if there’s anything else you need, I want to ensure your success. Thanks for reaching out and take care!

    L
    loganwatts
    January 1, 2021

    This is quite rudimentary and painstaking. Is there any way to change vendors to contractors in bulk?

    R
    Rasa-LilaM
    January 1, 2021

    Thanks for joining this thread, loganwatts.          

            
    I can see how beneficial for your business to able to change vendors to contractors by bulk. We’re keen on customer ideas, especially when improving product features.

     

    Suggestions like this help us identify the feature our customers want the most. I’ll note this one and pass it along on your behalf for consideration in future updates.


    For now, I still suggest updating your vendors’ information to contractors one at a time. This is to ensure your records are in order. You can follow the solution shared by @KhimG. Let me also shared this guide for additional reference: How to Add Independent Contractors and Track Them for 1099s in QuickBooks Online.


    Aside from that, I invite you to visit the QuickBooks Blog to view the latest features and enhancements added to the program. From there, you’ll find resources to help your business thrive.


    Please know the Community has your back. If you have any other QuickBooks concerns, feel free to visit us again. I’m always ready to answer them for you. Have a good one.

    Terms & ConditionsAccessibility statement