Add contractor expense bill

Pay an independent contractor and add their expense bill to Xero, then confirm their tax details and payments are correct. This way, their 1099 form is ready to file.

Before you start

Add expense bill

  1. In the Accounts menu, select Purchases.
  2. From New, select Bill.

    Image showing new bill link.

  3. In the From field, add the contractor's contact name.
  4. In the Account field, select the expense account you used in the 1099 rules.
  5. If you created several 1099 rules, you can add those items too.
  6. Fill out the rest of the bill according to the contractor's invoice.
  7. Click Approve.

Confirm contractor tax details and payments

  1. Click the contact's name.

    The contact shows Missing details if their tax ID number, postal address or email address isn't there.

  2. Edit the contact details. Xero saves the information to the contact record.

    Image of the 1099 contact details.

  3. Review the payments that Xero will include in the report.
  4. (Optional) In the Include column, clear individual checkboxes to exclude a payment.
  5. (Optional) In the Include column, clear all checkboxes to exclude the contact.

    Image of the payments reported on the 1099 for a contact, with one unselected.

  6. Check that the payments in your report are correct.
  7. (Optional) Edit your rules to reset any excluded payments or contacts.
  8. Click Save.

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