Vendor Records for 1099 Contractors
If your company or subsidiary operates in the United States or a US territory, you must report taxes for each contractor or non-employee. This is true if you pay more than $600 for services during the calendar year. You report taxes on Form 1099-MISC Miscellaneous Income statement. Each contractor that requires a 1099-MISC form must be identified as a 1099 contractor on their vendor record to generate accurate 1099 information. A vendor is 1099 eligible only if its address is in the United States or a US territory. Territories include American Samoa, Guam, Northern Mariana Islands, Puerto Rico, US Virgin Islands, and United States Minor Outlying Islands. NetSuite does not provide the 1099–MISC form, but a saved search is available to help you provide the 1099–MISC vendor payments to third party providers. For more information, see Reporting 1099–MISC Vendor Payments to a Third-Party Provider.
For vendor payments to accrue on the 1099-MISC form, do the following:
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Mark each contractor as 1099 Eligible on the Financial subtab of each vendor record. For more information, see Making a Vendor 1099 Eligible.
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Associate an expense account with 1099-MISC categories. For more information, see Associating an Expense Account with 1099-MISC Categories.
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Select an expense account associated with a 1099-MISC category when you add each expense to vendor bills.
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Pay the vendor bills. This converts the transactions to cash-basis.
Each 1099-MISC category represents a box on the 1099-MISC form. You can associate one category per expense or other expense account, and you can associate the same category to more than one account.
To view the list of 1099 eligible vendors, you can create a saved vendor search that filters the result by 1099 eligibility. For more information, see Defining a Saved Search.
Additional Information
Related Topics
- Enabling the Vendor Access Feature
- The Vendor Center Role
- Assigning a Role to a Vendor
- Manually Setting a Vendor’s Password
- Giving Vendors Access to Time Tracking
- Vendor Credit Limits
- Associating a Vendor With an Item
- Associating a Vendor With a Payroll Item
- Importing a Vendor Price List
- Preferred Transaction Delivery on Vendor Records
- The Multiple Vendors Feature
- Vendor Record Configuration