Is there a way to move a vendor to a contractor taking the payments too?

Hi there, @ROYAL.

Let me provide information and help you move a vendor to a contractor taking the payments to create a 1099 in QuickBooks Online (QBO).

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 checkmark on the box next to Track payments for 1099.

5. Hit Save.

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

Since you have completed the first step of adding a name to the vendor list. The next step is to ensure that the contractor (vendor) meets the following criteria:

• Vendors are paid via cash or check.

• Payments should reach the $600 or more threshold for 1099.

• Check if the accounts used on the vendor’s transactions are mapped for 1099. This includes the accounts of the items used in the transactions.

Additionally, when preparing your 1099s, you have the option to select the types of payments you made, and the expense accounts you used for these payments. QuickBooks will depend on how you set up the details on 1099.

To ensure that the accounts and boxes are correctly mapped, and the expense associated with the vendor payment is reported on 1099 for both the 1099-MISC and 1099-NEC forms, I suggest verifying that the vendor payments are mapped to the appropriate accounts. This way, QuickBooks will automatically determine the entries that should go to the 1099-NEC.

You can also check this article to learn which payments should be excluded from the 1099-MISC and 1099-NEC form: Understand which payments are excluded from a 1099-NEC and 1099-MISC

Please know that I'm just a reply away if you need any further assistance setting up a vendor to contractor in QuickBooks Online. Keep Safe!