Yep! In QuickBooks Online, a contractor is a type of vendor, not a separate record. You add and manage both from the same vendor list, so there's no need to build a duplicate profile just to track someone for a 1099.
Do I need a separate contractor profile for an existing vendor?
No. Vendors and contractors are both people or companies you pay, whether that's a subcontractor doing work for you or a business you owe money to, and QuickBooks Online adds and manages them in the same place.
- Go to All apps, then Expenses & Bills, then Vendors.
- Select New vendor, or open an existing vendor's profile to edit it.
- Complete the fields in the Vendor information window, then select Save.
How do I set up a contractor for 1099 tracking?
If you need QuickBooks to track a contractor's payments for a 1099, add them from the Contractors area:
- Go to All apps, then Expenses & Bills, then Contractors.
- Select Add a contractor.
- Enter their name and email address. Check Email this contractor if you'd like them to fill in their own details, or leave it unchecked to enter the information yourself.
- Select Add contractor.
Once you add someone this way, QuickBooks tracks their payments in the background, so their information is ready when you file 1099s. Every contractor added through this process is automatically eligible for a 1099.
Is 1099 contractor tracking limited to certain QuickBooks Online plans?
Nope. Tracking a vendor's payments for a 1099 is available across QuickBooks Online plans, including Simple Start, Essentials, and Plus, not just higher tiers.
How do I collect a signed W-9 without a paper copy?
You can invite a contractor to complete their W-9 directly in QuickBooks Online instead of collecting a paper form:
- Go to the Tax Filings tab.
- Select Gather recipient tax info.
- Look through the list to see who QuickBooks recommends giving a 1099 to. Select Review to see why a contractor is recommended. If you agree, select Track for 1099. If not, select Remove from list. If someone is missing, select Include more recipients to add them.
- Select Create W-9 invites, review the list, then select Send invites.
Your contractor gets an email invitation to complete their W-9 online. Once they submit it, you'll get a confirmation email and their information updates in your account automatically, giving you a stored digital record instead of a paper one.
Can I delete a vendor or contractor I no longer need?
You can't permanently delete a vendor or contractor in QuickBooks Online, but you can make one inactive.
- Go to All apps, then Expenses & Bills, then Vendors.
- Select the dropdown next to the vendor or contractor you want to remove, then select Make inactive.
FAQ
What's the practical difference between a vendor and a contractor in QuickBooks Online? A contractor is simply a vendor you're tracking for 1099 purposes. There's no separate record type behind the scenes. Adding someone under Contractors and adding them under Vendors both place them on the same list.
Do I need a separate payroll or payments subscription to track 1099s? No additional subscription is required to track a vendor for 1099 purposes in QuickBooks Online. The tracking and W-9 invite tools described above are part of the product itself.
Still stuck?
If a contractor isn't showing up where you expect, or a 1099 form is missing information, share the details in a comment and we'll help you track it down.
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