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How Do I Ensure Earnings Outside Of Payable Are Reported On 1099s?

Last Updated:
December 4, 2018

The IRS prefers payors (companies) to file a single 1099 per contractor or vendor for the current tax year. If you haven't been using Payable for the entire tax year, or need to supplement earnings made outside of Payable in any way, there are 3 simple ways to augment your information so that the 1099 you file using Payable is complete.

How can I do it right now so I’m prepared for January?

Just create a record of historical earnings as a Flat-Rate Payment (1), provide some context as to what the payment is for (2), enter the earnings total that was not paid through Payable (3) and mark it as “Paid Offline.” (4):

I have dozens to thousands of contractor details to update - how can I do this in bulk?

It is recommended you create a new Work Type called Prior [year] Earnings and then use the Work and Earnings import via CSV to import each total per user. As noted in the CSV import help article, please make sure you include the unique ID for the user, the name of the Work Type, the quantity for each user, and the date. Your import will be processed and you’ll get a chance to confirm when complete.

Important: If you’re doing this after the 1st of the year, make sure the date reflects the tax year that you are filing for!

Next you’ll need to mark each of these payments as “Paid Offline” and these totals will be added to the 1099 of the appropriate user.

When done, and all historical earnings have been accounted for, you can deactivate that Work Type by following these instructions: How Do I Deactivate a Work Type?

I need to update my 1099s with the correct total - how do I do that?

Payable was built to be the easiest way to manage and pay your contract workers, and that goes for making tax time a breeze too! After we generate the forms, they are fully updatable from any device:

Pay your contractors with Payable!

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