Don’t wait until the end of the year to realize that you do not have the information properly set up in QuickBooks for 1099 vendors. Set the process that when you enter the vendor information for the first time; be sure to include the necessary information to create the proper report. I actually suggest to clients to have a policy that states vendors will not be paid unless a W9 form is received.
About 1099 vendors
If you use unincorporated vendors, such as outside consultants or subcontractors, you need to send a 1099-MISC form to those who are paid more than a specific amount per year.
If you send Form 1099-MISC to any vendors, you can set up QuickBooks to track all 1099-related payments to each vendor. Then at the end of the year, you can print Forms 1099-MISC and 1096 or e-file Form 1099-MISC (Form 1096 is not required when you e-file) directly from QuickBooks.
Before you add a 1099 vendor, make sure QuickBooks is set up for 1099 tracking.
Edit -> Preferences.-> Tax: 1099 - > Company Preferences tab
To add an independent contractor
1. Verify that the 1099 feature is turned on in QuickBooks.
2. Add the person as a vendor.
3. Turn the person into a 1099 vendor by clicking on the Additional Info tab, entering the vendor’s tax ID number and clicking the Vendor eligible for 1099 checkbox.
4. Create an expense account for the payments you will make to this person that is mapped to the 1099 reports.