How do I handle 1099 Contractors in QuickBooks Payroll?
QuickBooks considers 1099 Contractors to be Vendors, not Employees, in QuickBooks. You set up contractors as vendors, and set up their hourly wage as a Service Item, not as a Payroll Item. At the end of the year, you can create a 1099 in QuickBooks that sums all the money you’ve paid them. You don’t have to subscribe to a payroll service in order to handle 1099 Contractors.
