Tracking and paying 1099 contractors

The simplest way to keep track of payments to 1099 vendors is to create an account called contractor expenses. This account should be added to your chart of accounts list and used to post all 1099 payments. For more information on adding accounts to the chart of accounts, refer to Chapter 4, Customizing QuickBooks for your Business.

You can pay 1099 contractors the same way you do other vendors. You can write a check, send a wire transfer, or use your debit/credit card to make payments to contractors. Refer to Chapter 7, Recording Expenses in QuickBooks Online, to learn more about how to pay contractors. 

Payments made via debit/credit card should not be reported on a 1099 form. 

Now that you know how to add independent contractors to QuickBooks, set up an account to track payments, and make payments, it's time to discuss...