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Home/FreshBooks/FreshBooks 1099 Contractor Payments
FreshBooks

FreshBooks Tracks What You Paid a Contractor. It Doesn't File the 1099.

FreshBooks has no native 1099 preparation or e-filing feature. You can track vendor and contractor payments through expenses and bills, but totaling what each contractor was paid over the year and generating the actual 1099-NEC forms is a separate manual step, or a separate tool, a business has to handle itself. We build the automatic hand-off from FreshBooks' payment data to a 1099 filing service, so nobody's tallying contractor totals by hand every January.

Tracking contractor payments in FreshBooks works fine for the accounting side: categorize payments as they happen, and the totals are sitting in your expense data whenever you need them. The gap is purpose-built 1099 tooling. FreshBooks doesn't flag which vendors crossed the $600 reporting threshold, doesn't collect W-9 information, and doesn't generate or e-file the actual forms.

Most businesses handle this by exporting a year's contractor payments and feeding them into a separate service built for 1099 filing, or by having a bookkeeper tally it manually at year end. Either way, it's a once-a-year scramble built on data that was sitting there the whole time.

What we build around FreshBooks and 1099 filing

01

Contractors flagged automatically at the $600 threshold

A vendor's year-to-date payments get tracked against the 1099 reporting threshold automatically, with a flag the moment they cross it, instead of discovering it in a year-end spreadsheet review.

02

Payment totals fed straight into a filing service

Contractor payment data pulled from FreshBooks feeds directly into a 1099 e-filing service like Track1099 or Tax1099, so nobody's manually re-entering a year of vendor totals in January.

03

Still tallying 1099 totals by hand every year?

Walk us through how you currently pull contractor payment data together at tax time, and we'll take a look at automating the hand-off.

Let's talk

Dreading the annual 1099 scramble with FreshBooks data?

Most of the data a 1099 needs has been sitting in FreshBooks all year. The scramble is almost always the tallying, not the filing. Tell us how you currently pull that together and we'll look at feeding it to a filing service automatically well before January. And if 1099s aren't actually where your year-end crunch is, that's fine too, n-frames automates whatever's manual, FreshBooks or anywhere else in your business.

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More on FreshBooks

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Questions people ask

Does FreshBooks file 1099s?

No. FreshBooks tracks vendor and contractor payments as expenses, but it doesn't generate or e-file 1099-NEC forms. Businesses need a separate tool or manual process for the actual filing.

How do I track 1099 vendors in FreshBooks?

Tag contractor payments with a consistent vendor name and expense category as you record them, so year-end totals per vendor are easy to pull from a report rather than reconstructed from scratch.

What is the 1099 threshold for contractor payments?

Generally, a business needs to issue a 1099-NEC to a non-employee contractor paid $600 or more in a calendar year. Thresholds and forms can change, so confirm the current rule with the IRS or your accountant before filing.

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