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1099 Contractors

This is your year-end 1099 prep page: which vendors are contractors, what you paid each of them in a tax year, and who crosses the IRS reporting threshold. Keep contractor details current all year and filing season becomes a review, not a scramble.

Key capabilities

  • Every vendor listed with its 1099 flag, tax ID, tax ID type (EIN or SSN), and default 1099 box
  • Edit a vendor's 1099 details in one place: contractor flag, tax ID, tax ID type, and default box
  • 1099 year-end summary: choose a tax year and Run report to total each flagged contractor's payments
  • Contractors who reach the $600 threshold are marked Required and highlighted
  • Report totals sorted from highest to lowest paid, with a grand total and the count of reportable contractors
  • Search both the vendor list and the report

How it works

The report adds up the bill payments you recorded for each vendor flagged as a 1099 contractor, using the payment date within the calendar year. A contractor whose total is $600 or more is marked Required. Only vendors with the contractor flag appear in the report.

flowchart LR
  vendor["Vendor flagged as 1099 contractor"] --> pay["Bill payments in the tax year"]
  pay --> total["Total paid per contractor"]
  total --> check{"$600 or more?"}
  check -->|"Yes"| req["Marked Required"]
  check -->|"No"| below["Listed, no 1099 needed"]

How to use it

  1. Open 1099 / Contractors in the Accounts Payable workspace (Controls group).
  2. Find each contractor, click Edit, tick This vendor is a 1099 contractor, and enter the Tax ID, Tax ID type, and Default 1099 box (for example NEC-1).
  3. In 1099 year-end summary, set the Tax year (it starts on last year) and click Run report.
  4. Review the Total paid and 1099? columns. Rows marked Required need a form.
  5. Use the report as your source when preparing 1099-NEC forms in your filing tool.

Pro tips

  • Flag contractors and collect their tax ID when you first pay them, not in January.
  • The tax ID is optional in DayZero, but you need it to file, so request a W-9 before the first payment.
  • Payments count by the date they were recorded on the bill, so record payments to the right date before running the report.
  • Run the report in January for last year; the tax year field defaults to the previous year.
  • Edit here changes only the 1099 fields; update names, addresses, and contacts on the Vendors page.

In-depth guide

What counts toward the total

  • Only payments recorded against bills for the flagged vendor count. Payments that never went through a bill, or are recorded on other vendors, are not included.
  • Payments are counted in the year they were made, not the bill's invoice date, so a December invoice paid in January counts toward the new year.
  • The grand total at the bottom sums every flagged contractor, including those under the threshold.

Threshold and boxes

The page flags contractors at $600 or more; the threshold is fixed and is not a setting. The Default 1099 box is stored on the vendor as a label for your filing; the report shows it in the Box column but does not file forms for you.

Related features

  • Contractors are ordinary Vendors; changing a vendor's name or tax ID there updates this page.
  • Use Bill request links on the Vendors page to have a contractor submit invoices themselves.

Over the API

Developers can read and update contractor details and pull the year-end totals over the API; see the AP workflows guide.