My 1099 Misc for my ONE contractor I paid with Venmo, won't show up. Shows 0.00

zoelarkinzoelarkin Member Posts: 6

Hi there, I have one contractor I paid less than $2k to, over 3 payments in 2019. I used Venmo as that's what we agreed. I have no employees and one contractor. Now I need to generate my 1099 for her, so I've upgraded to a paid Wave account with Payroll. I've marked the 3 payments as Gross Payroll, and allocated the payment source as my Biz Checking account which is what I used to pay her with (via Venmo). However, when I go to Payroll > Tax Forms > Generate under her business' name as a 1099 contractor, and look at "Nonemployee compensation (Box 7)" it says $0.00. When I then click on "View Contractor Payments", right next to that, it says the correct amount of $1,672. Why can I not issue the 1099 Misc for the $1,672, is there a reason it won't pull this information out and generate the form?

Comments

  • zoelarkinzoelarkin Member Posts: 6

    I figured it out now! I needed to add the invoices as a "bill" to the system, then manually mark paid. Shame that this simple step wasn't detailed clearly in the Wave help docs. For most of us that have contractors that do a few days' work a year and don't have complicated invoicing systems, I am sure this is something faced by other small business owners. Cheers!

  • FMELLOFMELLO Member Posts: 6

    Thanks for the posts. But I am still very lost here. Does that mean that I have to add all payments that qualify for 1099 reporting as "bills"? Is there a way to create bills from verified transactions? I have never entered a bill. I just pay my vendors and verify the transactions afterwards. Can someone please help me?

  • zoelarkinzoelarkin Member Posts: 6

    @FMELLO I'm no Wave expert, so perhaps someone will wade in. But as I only had 3 transactions, that was indeed how I did it - added each of the payments as a 'bill' then manually marked each as 'paid' once entered. I did need to upgrade to a Payroll-enabled account, which I intend on downgrading again once tax season is over as I only employ one independent contractor about 3 or 4 times each year. I had also never had a need to use the 'bill' system, as I use my CRM for all client invoicing, and do not do anything like that for my regular contractors' invoices. Hopefully someone who knows will give you an answer on whether you can create bills from verified transactions.

  • FMELLOFMELLO Member Posts: 6

    @zoelarkin thank you for your comment. The problem is exactly that I have dozens of transactions, all of which already verified and reconciled. From what I could understand, It seems that the bills are created and marked "paid" individually, and even worse, that this process creates "new" transactions. I hope someone in the community can help. I would need to be able to create and "pay" bills in bulk, from the already existing transactions. Or "bypass" this bill requirement entirely, since the transactions are already linked to the vendors/contractors.

  • zoelarkinzoelarkin Member Posts: 6

    I asked the same question as I did here, to their email support team at the same time I opened this thread and just got this answer back:

    _Sorry to hear you’re having some issues! To accurately pay your contractor. Please sure they are listed as a vendor under Purchases > Vendors. Once this is completed you will need to Create a bill and back date it for the work your contractors has done under Purchases > Bills and record a payment.
    Once this accurately displayed. You should be able to generate your 1099-Misc form.
    Hope this helps to clear things up! If I can assist you further, please let me know.__

  • AlexLAlexL Administrator Posts: 1,906 admin

    Hi @zoelarkin + @FMELLO ! Thanks for engaging in conversation with each other and I respect the grit you both have to try to work this out. I'd be more than happy to weigh in here.

    When generating a 1099-MISC form, you do indeed need to generate a Bill for each payment. When you mark a Bill as paid, it does also create a transaction, although to get around this you can merge the newly created transaction with the pre-existing bank imported transaction by selecting both in your Transactions page and hitting merge at the top of the page.

    In addition to this, please keep in mind that only certain Payment types will allow your contractor payments to show up on the 1099-MISC form, and these include Bank Payment, Cash, Check or Direct Deposit. Our other payment type options like PayPal or Other do not feed into the 1099-MISC form as you'd have to generate your forms through them. For Venmo payments specifically, because they don't issue the necessary forms, you can mark these as the Bank Payment payment type.

    edited January 30, 2020
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