About 1099 contractors

Set up an independent contractor so Xero can record their expenses to a 1099 form for you to file with the IRS at the end of the tax year.

How it works

  • You must have the Advisor role to add an independent contractor and file a 1099 form.
  • Independent contractors work for your business on a contract basis. If you pay an independent contractor more than $600 in a tax year, you must send a Form 1099-Misc (IRS website) to the IRS.
  • You can set up rules for your contractor expenses so they record to a 1099 form, ready for filing at the end of the tax year.
  • Xero excludes payments made by credit card or third-party services (eg PayPal) from 1099 forms. It also excludes expense claims.

Learn more