Quickbooks Payments - who is responsible for 1099NEC

[BulldogTom]

Client paid contractor via Quickbooks payments (Contractor Payments for those of you who use QBO).   Who is responsible to send the 1099 NEC to the contractor?   I think it is QB since they are the payment processor.    Just like Venmo or PayPal.

Am I correct?

Tom
Longview, TX

[Tracy Lee]

Client should be.  They are the one tracking the invoices.  I have been working in QB (desktop) since 2006.  I also use QB payments to pay vendors, but I have always had to issue the 1099 NEC.  I don't believe there is a way for QB to track every invoice for the year that has been paid, unlike Venmo or Paypal.   However, with that said QB Online works very differently and I won't have anything to do with it.  It allows income and expenses to be overstated all the time, but with that said they might issue the 1099s because QB Online takes more control of the books.

[Lee B]

How would Quickbooks know whether to send a 1099 MISC or a 1099NEC?

In addition, the vendors may receive a 1099K from there payment processor.

[Lee B]

"Form 1099-K.

Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-NEC."

Perhaps this exception applies to your situation?

[BulldogTom]

35 minutes ago, Lee B said:

"Form 1099-K.

Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-NEC."

Perhaps this exception applies to your situation?

That is what I am thinking.   I probably worded my question awkwardly.   

I think QBO as the payment processor should issue the 1099K, which would relieve the payor of the responsibility to produce a 1099NEC for the recipient.   

Is that how you see it?

Tom
Longview, TX

[Lee B]

My understanding is that the recipient processor issues the 1099Ks.

I know that this exception has reduced the number of 1099 NECs that I have to issue for my clients.

[kathyc2]

40 minutes ago, BulldogTom said:

I think QBO as the payment processor should issue the 1099K, which would relieve the payor of the responsibility to produce a 1099NEC for the recipient. 

QB payments does issue 1099K if the threshold is met.  If amounts client paid is less than threshold, they should issue the appropriate 1099 in most cases.