1099 subcontractor payments with correct tax tracking
We pay your W-9 contractors with proper tax tracking — no year-end surprise with the IRS.
Who it's for
Construction companies with many subs
Every sub is a 1099. Without monthly tracking, January is chaos.
Service businesses with recurring freelancers
Cleaning, landscaping, delivery. Each month you pay people who aren't employees — every one is a 1099.
Owners avoiding misclassification problems
Treating a sub as an employee (or the reverse) means heavy fines. We classify correctly.
What's included
- W-9 collection from all subcontractors
- Per-sub payment recording in Zoho Books
- Year-to-date tax tracking per contractor
- Monthly payment report per contractor
- Year-end 1099-NEC preparation
- Alert if a contractor is being treated as an employee (risk)
How it works
- 01
Sub registration
We request W-9 from every active contractor. We record name, EIN/SSN, address — everything the IRS needs for the 1099.
- 02
Monthly payments
Each payment is recorded against the correct contractor. At month-end you see the running total per person.
- 03
Year-end cycle
In January, contractors who crossed $600 YTD receive 1099-NEC automatically. The IRS gets its copy on time.
Common questions about this service
What if a contractor won't give me a W-9?
By law, without a W-9 you'd have to apply backup withholding of 24%. We alert you, withhold, and document. No headache.
I paid less than $600 to a contractor — still 1099?
No. The threshold is $600/year for 1099-NEC. But we record it anyway because if they cross the threshold later, you're already organized.
Can I pay by check or does it have to be ACH?
Any method works (check, ACH, Zelle, card). We categorize correctly regardless of method.
Ready for January's 1099 cycle?
If you don't know how much you've paid your subs this year, we map it in 20 min.