Add 1099 contractor to contacts

Add an independent contractor to Xero and set them up in a contact group.

Before you start

  • Make sure you hold the Advisor role (you must be an advisor to add an independent contractor to Xero).
  • Collect a W-9 from your contractor (IRS website). This form contains the contractor's name, address and taxpayer identification number.
  • Decide which expense account (from your chart of accounts) you'll use to pay the contractor.

Add contractor to your contacts

  1. In the Contacts menu, select All Contacts.
  2. Click Add Contact.
  3. Under Contact Information, fill in the contractor's details.
  4. Under Financial Details:
    • Add the expense account you'll use to pay the contractor.
    • Enter the contractor’s taxpayer identification number.
  5. Click Save.

Create contact group for 1099 contractors

  1. In the Contacts menu, select All Contacts.
  2. Find the contractor you added and select the checkbox next to their name.
  3. In the Options menu, select Add to Group.

    Image of adding a contact to a contract group.

  4. Click Add to new group. Add a group name (eg '1099 contractors'). You'll use this group name when you set up your 1099 form rules.
  5. Click Add.