You can generate 1099 form for vendors or independent contractors you pay $600 or more in a year. For more detailed information on payments to report on Form 1099, you can read through this article: Form 1099-MISC FAQ.
You can still generate 1099 forms for your vendors and contractors who were paid less than $600. Here's how:
Go to the Workers menu.
Choose the Contractors tab.
Click the Prepare 1099s button.
Go to Step number 4 by clicking Next.
Once there, go to the Type of contractors drop-down arrow.
Click 1099 contractors below the threshold.
Select Apply.
Click Finish preparing 1099s.
To learn more about preparing 1099-MISC forms in QuickBooks, you can check these articles:
Is there an update for this for 2023? The steps listed above seem to have changed and I am not seeing the option to pay vendors who earned less than $600 in 2023. Any ideas where this might be now?
Thanks for your time posting in the Community, @CYBS.
I've got some information you need about how 1099 currently works in QuickBooks Online.
There's a specific threshold that needs to be met so you can perform the process to ensure you can avoid an error. That said, filing 1099 under the threshold is currently unavailable in QBO. Thus, the steps provided by my colleague above have been changed.
Moreover, you can check out this article to learn how you can run specific reports to verify which contractors qualify for 1099: Understand which contractors need 1099s.