Paid a Contractor This Year? 5 QuickBooks Online Checks to Make Before January
If you hired contractors in 2026, there's a change worth knowing about. For payments made in 2026, the 1099-NEC reporting threshold rose from $600 to $2,000 per contractor.
Fewer forms may be headed your way, but your contractor records still need to be clean. You won't know which contractors cross $2,000 until the year is over. Your tax pro handles the filing. Your job is to have organized, tax-ready books when they ask.
Five checks to make in QuickBooks Online
Turn on 1099 tracking for each contractor. Open the vendor's profile and check the box to track payments for 1099. If that box is unchecked, QuickBooks won't count those payments.
Collect W-9s now. Contractors answer a lot faster in October than in late January.
Merge duplicate vendors. "Jen's Design," "Jens Design Co.," and "Jennifer R." might all be one person. Duplicates split the totals and hide who actually crossed the threshold.
Note how you paid each contractor. Check, ACH, card or payment app all make a difference, and your tax pro will want to know which payments went through cards or apps.
Reconcile through September 30. Contractor totals are only as accurate as the transactions behind them.
One focused hour in Q4 can save you a frantic week in January.
If your vendor list is a mess or your reconciliations are months behind, that's where RBG provides relief.
Don't wait, schedule your Discovery Call today!
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