Skip to main content
S
sullivanps
January 13, 2020
Question

If a company pays subcontractor by credit card quickbooks doesn't show payment in the 1099 vendor summary only picks up payments made by check or atm - how do I fix this?

  • January 13, 2020
  • 1 reply
  • 0 views
Original commenter did not share additional details

1 reply

Rustler
Rustler
January 13, 2020

You do not, there is no fix necessary, that is the regulation started several years ago by the IRS

 

Your company only reports cash and check payments to contractors.  Gotta love it, I got all my contractors to accept paypal payments and now I have zero 1099's to prepare

    S
    sullivanpsAuthor
    January 14, 2020

    I did some research on this subject and found that Quickbooks is not correct, they are confusing a credit card company who collects many transactions for a company, vs. a company who is paying their subcontractors via a credit card payment.  Credit card companies must issue a 1099K if a company's credit card receipts total a certain amount, which is $20,000.00.  

     

    I am a bookkeeper and therefore need to include those credit card payments to a subcontractor on their 1099MISC.

     

    Hope this helps you!  

      E
      Emily M
      January 15, 2020

      Hello, @sullivanps.

       

      It’s my priority that you’re able to get all your subcontractors on the 1099. If you contractor paid with a credit/debit card, gift card, or PayPal you’ll want to edit those transactions and use a different method like check or expense.

       

      If the accounts you used on your vendor transactions are not mapped for 1099, then the transactions will not show on the report. This includes the accounts you used on your items.

       

      Here’s how to map them:

       

      1. Go to Expenses and click the Prepare 1099's button in the upper right-hand corner.
      2. Set up your company information and choose Next.
      3. Place a check mark in Box 7: Non-employee Compensation checkbox.
      4. In the drop list, click all the accounts you used in all your contractor transactions.
      5. Pick Next and select Finish Later to finish the setup.

       

      Here’s an article about contractors missing from the 1099s that will be helpful:

      https://quickbooks.intuit.com/learn-support/en-us/1099-misc-payroll-forms/why-are-some-contractors-missing-from-my-list-of-1099-vendors/00/370791

       

      I’m just a few clicks away should you need anything else.

      Terms & ConditionsAccessibility statement