If a Contractor is marked as Inactive, after being paid through Payroll for part of the year, will the 1099 still be produced at year-end?

Inactive contractors won’t appear when you generate a 1099 in QuickBooks Online, you'll need to reactivate the contractor at the end of the year, Christine.

Here’s how:

1. Go to the Vendors menu.
2. Click the small Gear icon and put a check mark beside the Include Inactive box.
3. Look for the Vendor name.
4. Select the Make Active option.

Make sure to review their transactions to ensure they meet the $600 reporting threshold and were paid using cash, check, or direct deposit. Keep in mind that payments made via credit card, debit card, gift card, or third-party networks like PayPal are excluded, as QuickBooks Online automatically omits them from the 1099 report.

For more details, please visit this article: Troubleshoot missing contractors or wrong amounts on 1099s.

Please don't hesitate to drop a comment below if you have any other questions.