Set up Form 1099-NEC for recipients

Set up a vendor as a 1099 recipient

Choose
Setup
, then
Vendors
.
Add or edit a vendor record.
On the
Main
tab, select 1099 Recipient from the
Vendor Type
field.
Select the
1099 Properties
tab.
In the 1099 Form Selection section, specify the type(s) of 1099 form the vendor should receive and the Boxes to which the amounts should accumulate for reporting.
If you want to set a form type and box as the default when entering checks for the vendor, mark the
Default
checkbox.
note
If each transaction requires a separate 1099 filing for the selected form, mark the
One Form Per Transaction
checkbox for that form.
To ignore the printing threshold and always print that form, mark the
Always Print Form
checkbox.

You'll need to include the 1099 Form/box columns at a minimum.
You can map the 1099 boxes in the
Column Mappings
screen when you import the vendors.
You can map each 1099 item to the correct form and box designation in the
Data Mapping - 1099
screen when you import the vendors.

Set up an employee as a 1099-NEC recipient (Independent Contractor)

If necessary:
Select
Setup
, then
Payroll
Items
Add a new pay item.
Select
Nonemployee Compensation
in the
Special Type
field.
Select
Setup
, then
Employees
and create a new employee record with the type Independent Contractor and select a payroll item.
note
Only payroll items specified as special type Nonemployee Compensation or Nonemployee reimbursement are available.
Select
Enter
to save the employee information.
note
All earnings entered for this employee during payroll runs will display on the 1099-NEC form when it's time to process and print 1099 forms.
On the
Payroll Items
tab, activate any pay items in the Nonemployee compensation section.

tip

You can use spreadsheet import to quickly set up Independent Contractors. If you haven’t already done so, set up a Nonemployee Compensation payroll item. You'll need to include, at minimum, the columns shown in the following example spreadsheet.

ID
First
Last
SSN
Type
Location
Department
Addr Line 1
City
State
Zip