How do I know whether a vendor should be marked as a 1099 subcontractor?

It's good to see you posting in the Community forum, enyakc.

Let me share information about the difference between a vendor and a subcontractor.

A vendor is a person or company who sells things, most of the time products that are comparable to one another, to a variety of clients. While a contractor is a person who is hired by an organization to carry out particular responsibilities that have a predetermined deadline.

In QuickBooks Online, determining whether a vendor should be marked as a 1099 subcontractor involves considering several factors related to the payments made to the vendor. To help you decide whether a vendor should be marked as a 1099 subcontractor, you can check the following:

• Payment Type
• Nature of Services
• Business Entity Type
• IRS Guidelines

To mark a vendor as a 1099 subcontractor, you can set them up as a 1099 vendor in the vendor profile. 

Here's how to do it:

1. In the left menu, click Expenses.
2. Go to the Vendors tab.
3. Locate and choose the vendor you want to mark as a 1099 subcontractor.
4. Click Edit in the vendor profile.
5. Check the box that says Track payments for 1099.
6. Enter the vendor's tax ID or Social Security number.
7. Save the changes to the vendor profile.

For guidance in preparing and filing 1099 forms in QuickBooks Online, see these articles:

• Get answers to your 1099 questions
• Create and file 1099s with QuickBooks Online

For future reference, here's a great resource to help you close out your current year and prepare for the new year in QuickBooks with your accountant: Year-end guide for QuickBooks Online.

Fill me in if you have other 1099 concerns or questions. I'll get back to help and make sure you're taken care of.