How to Set Up a 1099 Independent Contractor Vendor in QuickBooks Desktop

In this tutorial, we will learn how to create a 1099 independent contractor vendor in QuickBooks Desktop.

Important Note:

The Print 1099s/1096 option appears only in one condition i.e. when you activate the 1099 miscellaneous feature in QuickBooks Desktop.

Step by Step process to create a 1099 independent contractor vendor in QuickBooks Desktop


Step 1:

Turn on the 1099-MISC feature:

Step 1.1:

Select Edit> Preferences.

Step 1.2:

Choose Tax: 1099 on the left.

Step 1.3:

Select the Company Preference tab.

Step 1.4:

Next to do you file 1099-MISC forms? Choose Yes.

Step 1.5:

Select OK to save the preference.

Step 2:

To add a new vendor:

Step 2.1:

Choose Vendors > Vendor Center.

Step 2.2:

Click the New Vendor drop-down arrow and select New Vendor.

Step 2.3:

In the Vendor Name field, enter the name of the vendor as you’d like it to appear on your Vendors list. For example, in case the vendor is an individual and you list individuals by last name first, that’s how you should enter the name.

Step 2.4:

On each tab, enter information as needed.

Step 2.5:

You can edit the vendor to add more information later.

Step 2.6:

Click OK.

Step 3:

Set up vendors to receive Form 1099-MISC.

Step 4:

Set up an expense account for vendor payments.

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