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siri-streamofmin
February 20, 2024
Question

How do I retroactively add payments to a contractor?

  • February 20, 2024
  • 1 reply
  • 0 views
I have had a contractor all year but just now added her to my Quickbooks account so I can 1099 her. All of the payments have been through Venmo, so they only show up in QB if they exceeded my Venmo balance. I did label the payments that did show up with her name as a Vendor, but that is all I did to categorize them. Is there a way to retroactively recategorize those payments so it shows up on her 1099? Also, is there a way to record the Venmo payments that have not shown up in QB?

1 reply

A
Archie_B
February 20, 2024

Hi there, siri-streamofmin.

 

Allow me to share some insights about retroactively adding contractor payments in QuickBooks Online.

 

If you need to contractor payments in QuickBooks, the first thing you need to do is to add your vendor in QuickBooks and set them up as a 1099 contractor. Then, manually enter their payment as an expense. 

 

Like this:

 

  1. Click the + New button.
  2. Under Vendors, choose Expense.
  3. Enter the necessary details and save.

 

However, it's important to note that according to IRS guidelines, payments made to 1099 vendors using credit cards, debit cards, or third-party payment systems like Venmo are generally excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution or payment processor is responsible for reporting these transactions to the IRS.

 

You can check out this guide for more information: Understand which payments don't count from a 1099-NEC and 1099-MISC form.

I've also added this resource as an additional reference if you still have questions about 1099s: Get answers to your 1099 questions 
 

If you need additional assistance, please don't hesitate to reach out to us. We're here to help.

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