Paying Subcontractors — 1099 Setup & Tracking

Why this matters

If you pay a subcontractor (individual or unincorporated business) $600 or more in a calendar year, you're required to issue them a 1099-NEC at tax time. Truss helps you track payments — but you'll need to collect W-9s and issue 1099s through a separate tool or accountant.

Before you pay a subcontractor

1. Collect a W-9 — Get this from the sub before issuing any payment. The W-9 gives you their legal name, address, and tax ID (SSN or EIN).
2. Add them as a Vendor in Truss — Bills → Vendors → Add Vendor. Enter their name, email, and payment details.
3. Note their entity type — Individuals and sole proprietors get 1099s; corporations (Inc., LLC taxed as Corp) generally do not.

Paying via Truss

Pay subcontractors through Bills → Pay a Vendor the same way you'd pay any vendor. ACH payments go directly to their bank account. Keep the memo field descriptive ("Framing labor — March 2026") so your bookkeeper can categorize easily.

Tracking sub payments for 1099s

• Go to Transactions and filter by vendor name to see all payments to a specific sub.

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• Export transaction history (CSV) for any date range — useful for sharing totals with your accountant.

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• Truss does not generate 1099s — use your accountant, QuickBooks, or a service like Track1099 to file them.

Tip: Set a reminder in January: pull your Truss transaction export for each sub and hand it to your accountant by January 31 so 1099s go out on time.

Heads up: 1099s are due to subcontractors by January 31 and to the IRS by January 31 (electronic) or February 28 (paper). Late filing carries IRS penalties.