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NFESH_Tom
February 25, 2021
Question

Does Bill.com send out 1099-K's?

  • February 25, 2021
  • 3 replies
  • 0 views

Our company switched from paying contractors by check in QB Online to using Bill Pay Online (i.e., Bill.com) in 2020. The 1099-NEC's generated by QBO excluded all of the payments made through Bill.com from our company's 1099's. The Help function indicates that the third party processor (Bill.com) would issue a 1099-K. None of our contractors have received a 1099-K from Bill.com though. Will Bill.com issue a 1099-K or should those payments be included in the 1099's that the company generates? If the payments should be included in the company-issued 1099-NEC's, how do we make the adjustment in QBO?

 

3 replies

M
Mark_R
February 25, 2021

Let me ease your confusion, @NFESH_Tom.

 

Allow me to fill you in on everything about how 1099-K reported for contractors paid electronically.

 

Payments made for the contractors using Bill Pay Online isn't subject to reporting on Form 1099-NEC. That said, the payment companies, like Bill.com, will handle any required reporting for your contractor. Those electronic payment providers are required to send out a different version of 1099, called the 1099-K.

 

In addition, one of the possible reasons why your contractors don't receive the 1099-K form from Bill.com is that if you haven't processed at least 200 card transactions and $20,000 in gross sales during the previous calendar year. For more details, feel free to read these articles:

 

 

Please let me know if you need further clarification about this, or if there's anything else I can do for you. I'll be standing by for your response. Have a great day.

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NFESH_TomAuthor
February 25, 2021

Thank you for the quick response. That explains why the contractors did not get a 1099-K from Bill.com. Our organization did not meet the threshold for number or dollar amount of transactions. However, our contractors are expecting 1099's to prepare their tax returns (at least those that received more than $600 from us). Is there a work around that you know of to get them the documentation they need for their tax returns?

J
jamespaul
February 25, 2021

Hello, NFESH_Tom. 

 

Going back to your original post, there are a couple of reasons why those payments (for contractors that received more than $600) are excluded from the 1099 setup screen in QuickBooks Online. 

 

I'll go over a couple of factors and help you file your 1099 forms. 

 

You'll want to check your Bill.com data and see if those vendors are tracked for 1099. They will be excluded from the 1099 setup screen if they're not set for 1099 tracking. 

 

Next, you'll also want to check the expense account mapping and ensure they're mapped to the correct boxes. Here's how: 

 

  1. In QuickBooks Online, go back to the Prepare 1099s screen. 
  2. Click the Continue your 1099s button.
  3. Go back to Step 2 by clicking the Back button.
  4. Review your 1099 account mapping. 

 

After correcting the mapping, file your 1099 forms as you normally would for your contractors' tax documentation. 

 

Do you need to work on other areas in QuickBooks Online? Or need to take care of other tax forms? You can get other help content from our general topics page. Just select a specific topic, then look for an article. 

 

I'll stand by if you have other questions while working on your QuickBooks Only company. 

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NFESH_TomAuthor
February 26, 2021

I double-checked that, and it was all done correctly. As I mentioned in the original post, the vendors received 1099's for the amounts that were paid by check. I still need a workaround for the payments made by Bill.com that did not generate 1099-K's.

K
kp_kis
January 31, 2022

Bill.com is promoting a 1099 filing tool. That seems to suggest they don't file 1099's. It's very confusing - why can't they just say that flat out...

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