Form 1099-NEC reports what a business paid a non-employee, such as a contractor, for services in a calendar year. You send a copy to the contractor and file one with the IRS.
Before you start
- Sage 100 Contractor Accounts Payable
- 1099 type set on each vendor
- Vendor TIN in the Federal Id# box
The Sage 100 Contractor way
Where to find it: 4-4 Vendors (Accounts Payable) > Financial Information > 1099; 4-1-5-61 Vendor 1099 Payments; 4-5 Vendor 1099 Forms
- On each contractor vendor set the 1099 type under Financial Information. 1-Nonemployee Compensation prints the balance in box 1 of the 1099-NEC.
- Pay the vendor with a vendor check or general ledger check that carries the vendor number. The 1099 balance goes up by the check amount and down if you void it.
- At calendar year end finish entering payments and run the 4-1-5-61 Vendor 1099 Payments report.
- Verify balances in 4-4 Vendors > Options > 1099 Balances. Compare the 4-1-5 Vendor Payment Journal to the 1099 Balances report.
- Fix any gap in the vendor record under Options > 1099 Balance Startup/Adjustment. Use the adjustment date and amount.
- Open 4-5 Vendor 1099 Forms to print or file the forms.
Limits in Sage 100 Contractor
- The Sage help gives the reporting level as $600. The IRS says the threshold for payments made in 2026 is $2,000 and for payments made before 2026 it is $600. Check what your version applies.
- 1099 balances build from vendor checks and general ledger checks that carry the vendor number. Other payment types need a manual adjustment.
- State filing rules are outside what the Sage help covers.
Good to know in Sage 100 Contractor
- 1099 totals are tracked by calendar year and by vendor, not by 1099 type.
- 2-Rent and 3-Attorney types print on the 1099-MISC. 4-Interest prints on the 1099-INT.
- The 1099 Balance Startup/Adjustment window is how you bring in totals from a previous software package.
Common mistakes
- Leaving a contractor on 0-Undetermined, so no 1099 type decides which box the balance prints in.
- Paying a contractor by a method that does not carry the vendor number, then missing that payment in the 1099 balance.
More help
- How to report contractor payments for TPAR from Sage 300 CRE
- How to check a vendor's TIN in Sage 100 Contractor
- How to record retention on a subcontractor payable invoice in Sage 100 Contractor
- How to set up a new vendor safely in Sage 100 Contractor
- All Sage 100 Contractor how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: confirmed.
- help-sage100contractor.na.sage.com/Sage100Contractor/US/25_1/Content/Modules/4-Accounts_Payable/About_Federal_1099_forms.htm
- help-sage100contractor.na.sage.com/Sage100Contractor/US/25_1/Content/Modules/4-Accounts_Payable/About_1099_types.htm
- help-sage100contractor.na.sage.com/Sage100Contractor/US/25_1/Content/Modules/4-Accounts_Payable/About_1099_Balance_Startup_and_Adjustment.htm
- help-sage100contractor.na.sage.com/Sage100Contractor/US/25_1/Content/Modules/4-Accounts_Payable/Verifying_1099_balances.htm
- help-sage100contractor.na.sage.com/Sage100Contractor/US/25_1/Content/Modules/1-General_Ledger/Processing_vendor_1099s_at_calendar_year_end.htm
- www.irs.gov/businesses/small-businesses-self-employed/am-i-required-to-file-a-form-1099-or-other-information-return
Common questions
How does Sage 100 Contractor track 1099 payments?
Including the vendor number on a vendor check or general ledger check raises the vendor's 1099 balance. Voiding the check lowers it. Balances are kept by calendar year whatever the vendor's 1099 type.
What do I run at year end for 1099-NEC?
Run the 4-1-5-61 Vendor 1099 Payments report and check it. Fix gaps with Options > 1099 Balance Startup/Adjustment on the vendor. Then open 4-5 Vendor 1099 Forms to process the forms.
What is the 1099-NEC threshold now?
The IRS says $600 for payments made before 2026 and $2,000 for payments made in 2026. Sage's help still says $600, so check the figure your version uses before you decide who gets a form.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles supplier bills in Sage 100 Contractor.