> ## Documentation Index
> Fetch the complete documentation index at: https://help.kneadapp.co/llms.txt
> Use this file to discover all available pages before exploring further.

# Contractors and 1099-NEC Forms

> Track contractor payments and generate 1099-NEC worksheets at year-end.

## Overview

If you paid a decorator, a delivery driver, or any other contractor \$600 or more in a year, the IRS expects you to issue them a 1099-NEC. Knead tracks contractor payments as you go and generates a 1099-NEC worksheet for each qualifying vendor at year-end — no spreadsheet gymnastics required.

## Where to Find Contractors

Tap **Contractors** in the sidebar to open `/contractors`. The page is titled "Contractors & 1099s" with the description "Track contractor payments and generate 1099-NEC worksheets at year-end."

<img src="https://mintcdn.com/kneadapp/GEXsIwkkXZhBlwIA/images/contractors.png?fit=max&auto=format&n=GEXsIwkkXZhBlwIA&q=85&s=f9fe802513ae6691a5d7351b94adff00" alt="The Contractors page with the per-vendor table and the vendors-not-yet-flagged list" width="2880" height="1800" data-path="images/contractors.png" />

## Flagging a Payment as Contractor Pay

There are two ways to mark money as contractor pay:

1. On the expense form, check the **Contractor payment (1099-NEC)** card when you log the expense.
2. On the **Contractors** page, under "Vendors not yet flagged as 1099," tap **Mark as 1099** next to a vendor.

## Reading the Contractor Table

Each vendor gets a row showing:

| Column        | What it shows                                         |
| ------------- | ----------------------------------------------------- |
| **Vendor**    | Name, plus the legal name once a W-9 is on file       |
| **YTD total** | Total paid to them this year                          |
| **Expenses**  | How many payments make up that total                  |
| **W-9**       | "On file" or an **Add W-9** button                    |
| **Action**    | A **1099-NEC** download, or a reason it's unavailable |

The **1099-NEC** download only appears when a vendor has been paid **\$600 or more** *and* has a W-9 on file. Otherwise the Action column reads "Add W-9 first" or "Under \$600".

## Collecting a W-9

Tap **Add W-9** to open the form at `/contractors/[vendor]/w9` and fill in:

* **Legal name (as on W-9)**
* **Tax classification** (Individual/Sole proprietor, LLC, Partnership, C corporation, or S corporation)
* **Tax ID (SSN or EIN)**
* **Address line 1** and **Address line 2**
* **City**, **State**, **ZIP**
* **Contact email (optional)**

Tap **Save W-9** when you're done.

<img src="https://mintcdn.com/kneadapp/GEXsIwkkXZhBlwIA/images/contractor-w9.png?fit=max&auto=format&n=GEXsIwkkXZhBlwIA&q=85&s=73f92be789dcfb310ac95951e4aced05" alt="The W-9 form with legal name, tax classification, tax ID, and address fields" width="2880" height="1800" data-path="images/contractor-w9.png" />

## Set Up Your Business Tax Identity First

Before you can generate any 1099-NEC, Knead needs your business EIN and mailing address. If they're missing, you'll see an amber banner: "Add your business EIN and mailing address before generating 1099-NECs."

<Note>Good to know: The 1099-NEC PDF (downloaded from `/contractors/[vendor]/1099-nec.pdf`) uses your business tax identity as the payer block. Set that up once and every 1099 is ready to go.</Note>

<Tip>Pro tip: Collect a W-9 from a contractor *before* you pay them the first time. It's far easier than chasing one down in January.</Tip>

## Related Articles

* [Setting Up Your Business Tax Identity](/bookkeeping-and-taxes/business-tax-identity)
* [Tracking Business Expenses](/bookkeeping-and-taxes/tracking-business-expenses)
* [The Schedule C Worksheet](/bookkeeping-and-taxes/schedule-c-worksheet)

***

*Still need help? [Contact us](mailto:hello@kneadapp.co)*