Track 1099 payments and stay calm in January
Hunting for contractor payments at tax time? Log each one as you pay it. Automatically sort them into your 1099 tax report, ready for January. E-file with a partner app (fees may apply) or export a CSV.
Make 1099 tracking part of your everyday books
Stay on top of contractor payments all year, from paying bills to sharing reports with your advisor.
Get answers fast
Run multiple reports at once and customize your view, with less double-checking and manual work.
Keep tabs on all your bills
Set who can approve bills, spot duplicates, and track due dates. It’s easier to stay organized and pay on time.
Work with your advisor easily
Share up-to-date reports with your accountant or bookkeeper in Xero, and you’re all working from the same numbers.
Collect W-9s before the first payment
When a new contractor starts, send them a digital W-9 by secure link. Their answers fill in their contact record automatically, and you can add them to your 1099 contact group from the W-9 management tab. That means less chasing and retyping.
- ✓ Send contractors a secure link to complete their W-9
- ✓ Mark contractors as 1099 contacts in the W-9 management tab
- ✓ Update legal or business names in contact fields
- ✓ Find every contractor in your 1099 contact group
Track 1099 payments all year long
Pay contractors as usual, and Xero records each payment for your 1099 report. Who's over the $2000 threshold for 2026 payments? The Cash payments by vendor report shows totals per contact, so you know who needs a 1099 long before January.
Manage business expenses in Xero
Review your 1099 report before you file
Set rules to tell Xero which payments to include and which 1099-NEC or 1099-MISC box each one goes in. You can move payments between boxes or remove any that don’t belong. Then check for missing taxpayer identification numbers (TINs), and you’ll have fewer corrections to make later. Fine-tune your report before you file!
- ✓ See which transactions your rules include
- ✓ Move payments to the right 1099 box and form
- ✓ Remove payments you don't want reported
- ✓ Add each contractor's Tax ID number to their contact record
E-file your 1099s your way
Prefer to file with a partner or on your own? Send 1099-NEC and 1099-MISC forms to the IRS through e-filing partner apps in the Xero App Store (fees may apply), or export a CSV for the IRS IRIS portal.
Browse e-filing partner apps in the Xero App Store
Create and e-file 1099 forms in Xero
FAQs on tracking 1099 payments in Xero
Mark contractors as 1099 contacts in the W-9 management tab, and they join your 1099 contact group. From then on, each payment you make to them counts toward their total, and rules tell Xero which payments to report and which box to use. Explore Xero’s tools for contractor businesses.
Mark contractors as 1099 contacts in the W-9 management tab, and they join your 1099 contact group. From then on, each payment you make to them counts toward their total, and rules tell Xero which payments to report and which box to use. Explore Xero’s tools for contractor businesses.
It depends on what you’re paying for, as Xero's guide to 1099 filing requirements explains.
-Form 1099-NEC reports nonemployee compensation, such as contractor and freelancer fees.
– Form 1099-MISC reports other payments, such as rent, prizes, awards, or attorney gross proceeds.
It depends on what you’re paying for, as Xero's guide to 1099 filing requirements explains.
-Form 1099-NEC reports nonemployee compensation, such as contractor and freelancer fees.
– Form 1099-MISC reports other payments, such as rent, prizes, awards, or attorney gross proceeds.
For payments made in 2026, the 1099-NEC and 1099-MISC reporting threshold is $2,000 (previously $600 through 2025). Xero leaves these out of the 1099 report:
- credit card payments, which card processors report on Form 1099-K
- sales invoice payments
- receive money transactions
- manual journals
You can remove other payments yourself, too. See the IRS instructions for Forms 1099-MISC and 1099-NEC for the full rules.
For payments made in 2026, the 1099-NEC and 1099-MISC reporting threshold is $2,000 (previously $600 through 2025). Xero leaves these out of the 1099 report:
- credit card payments, which card processors report on Form 1099-K
- sales invoice payments
- receive money transactions
- manual journals
You can remove other payments yourself, too. See the IRS instructions for Forms 1099-MISC and 1099-NEC for the full rules.
Yes. Send a contractor a secure link to complete a digital W-9, and their details populate their contact record in Xero. E-filing partner apps then check TINs when you file. Read the IRS overview of Form W-9 for details.
Yes. Send a contractor a secure link to complete a digital W-9, and their details populate their contact record in Xero. E-filing partner apps then check TINs when you file. Read the IRS overview of Form W-9 for details.
Yes, through e-filing partner apps in the Xero App Store, which file 1099-NEC and 1099-MISC forms with the IRS and states (fees may apply). Rather do it yourself? Export your 1099 report as a CSV and file it through the IRS Information Returns Intake System (IRIS).
Yes, through e-filing partner apps in the Xero App Store, which file 1099-NEC and 1099-MISC forms with the IRS and states (fees may apply). Rather do it yourself? Export your 1099 report as a CSV and file it through the IRS Information Returns Intake System (IRIS).
File Form 1099-NEC with the IRS and send copies to contractors by January 31, or the next business day if that falls on a weekend. For 2026 payments, that's February 1, 2027. Most 1099-MISC forms are also due January 31. Get the rest of your year-end tasks in order with Xero's fiscal year end checklist.
File Form 1099-NEC with the IRS and send copies to contractors by January 31, or the next business day if that falls on a weekend. For 2026 payments, that's February 1, 2027. Most 1099-MISC forms are also due January 31. Get the rest of your year-end tasks in order with Xero's fiscal year end checklist.
E-filing partner apps deliver copies to contractors by email or mail, and they handle corrections if you need to file any. Keep the rest of your tax prep on track with Xero's tax preparation software.
E-filing partner apps deliver copies to contractors by email or mail, and they handle corrections if you need to file any. Keep the rest of your tax prep on track with Xero's tax preparation software.
W-9 + 1099 management is included on the Early, Growing, and Established US plans. To open the 1099 report, you need the administrator or standard + reports role. Compare Xero’s US plans and pricing.
W-9 + 1099 management is included on the Early, Growing, and Established US plans. To open the 1099 report, you need the administrator or standard + reports role. Compare Xero’s US plans and pricing.
Pay your bills at no extra cost
Free standard ACH bill payments are now included in Xero business plans.*
Early
for the first 6 months
Then $27 per month
An easy financial foundation - track cash flow with the essentials.
- Send quotes and 20 invoices†
- Accept online invoice payments^
- 5 bills
- Reconcile bank transactions
- Smart Document Capture
- View real-time reports
- W-9 + 1099 management
- Sales tax
- Visualize performance with basic graphs
- 30 day cash flow forecast
- Make online bill payments (Domestic - Free ACH)
- Make online bill payments (Cross Border)
Growing
for the first 6 months
Then $59 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- Automate bill entry and track bills
- Reconcile bank transactions
- Smart Document Capture
- View real-time reports
- W-9 + 1099 management
- Sales tax
- Visualize performance with graphs
- 60 day cash flow forecast
- Make online bill payments (Domestic - Free ACH)
- Make online bill payments (Cross Border)
- Customize performance dashboards
- Tailored financial health scorecards
- Budget with smart suggestions
- Auto-reconcile transactions
Forecast with clarity
Forecast with clarity
Established
for the first 6 months
Then $97 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- Automate bill entry and track bills
- Reconcile bank transactions
- Smart Document Capture
- View real-time reports
- W-9 + 1099 management
- Sales tax
- Visualize performance with graphs
- 180 day cash flow forecast
- Make online bill payments (Domestic - Free ACH)
- Make online bill payments (Cross Border)
- Customize performance dashboards
- Tailored financial health scorecards
- Analyze KPIs and ratios
- Use multiple currencies
- Track time and costs for projects
- Employee expense and mileage claims
- Benchmark against the industry
- Make online bill payments (International)
- Budget with smart suggestions
- Auto-reconcile transactions
‡Based on published list prices for software subscription only. Pricing and features vary by plan.
*Fees apply for other payment methods.