Track Contractor Payments, W-9s, and 1099s in Money Pro
Money Pro can track contractor payments after they appear in your bank transactions, but it does not collect W-9 forms, prepare 1099-NEC forms, or file contractor tax forms. Collect W-9s before paying contractors, use a contractor/payroll platform or accountant for 1099 handling, and categorize payments in Money Pro as contractor expenses.
What Money Pro Does and Does Not Do for Contractors
Money Pro records the bookkeeping side of contractor payments. It shows the money leaving your bank account and lets you categorize that transaction for expense and tax reporting.
Money Pro can help you:
- Track payments that sync from a connected bank account
- Categorize contractor payments as Contract Labor, Commissions and Fees, or a similar category
- Include contractor spending in expense reports
- Export reports for your accountant or tax preparer
Money Pro does not:
- Collect W-9 forms
- Store contractor tax IDs for filing
- Determine whether a worker is a contractor or employee
- Generate Form 1099-NEC
- File 1099s with the IRS or states
- Replace a payroll/contractor payment platform
Before You Pay a Contractor
Before paying a contractor, collect the right information and decide how you will manage year-end reporting.
Recommended workflow:
- Ask the contractor for a completed W-9 before work begins or before the first payment.
- Confirm whether the worker should be treated as a contractor or employee.
- Choose a payment method or contractor platform.
- Keep the W-9 with your business records.
- Pay the contractor from your business bank account.
- Let the payment sync into Money Pro.
- Categorize the transaction correctly.
If you are not sure whether someone is a contractor or employee, ask a tax professional before paying them. Worker classification affects payroll taxes, forms, and penalties.
Categorize Contractor Payments in Money Pro
When the payment appears in Money Pro, use a contractor category — not Wages.
Common categories:
| Payment type | Money Pro category |
|---|---|
| Independent contractor work | Contract Labor |
| Freelancer or subcontractor project work | Contract Labor |
| Sales commissions or referral fees | Commissions and Fees |
| Professional services from another business | Legal and Professional Fees or Contract Labor |
| W-2 employee payroll | Wages / Payroll, not Contract Labor |
Use notes or custom subcategories if you want to track contractors separately. For example, you can create subcategories for specific vendors under Contract Labor if your account supports business subcategories.
Use a Contractor or Payroll Platform for 1099s
If you need to issue 1099-NEC forms, use a payroll/contractor payment platform, accountant, or tax professional. Tools such as Gusto, ADP, OnPay, or another contractor payment provider may help collect W-9 information, store contractor records, process payments, and prepare year-end forms.
Money Pro's role is to keep your books accurate. The 1099 platform's role is to manage contractor tax forms. Your accountant can use Money Pro reports to check total contractor payments, but Money Pro does not create the official 1099 filing.
Frequently Asked Questions
Can Money Pro create 1099-NEC forms?
No. Money Pro does not create, file, or send 1099-NEC forms. It tracks contractor payments as expenses after they appear in your bank feed. Use a contractor payment platform, payroll provider, accountant, or tax professional for 1099 preparation and filing.
Can Money Pro collect W-9 forms from contractors?
No. Money Pro does not collect W-9 forms. Ask contractors for a completed W-9 before paying them and store it with your business records or in the contractor platform you use.
What category should I use for contractor payments?
Use Contract Labor for most independent contractor and freelancer payments. Use Commissions and Fees for sales commissions, referral fees, or commission-based payments. Do not use Wages unless the worker is a W-2 employee paid through payroll.
What if I pay contractors through Gusto, ADP, or OnPay?
The payment provider handles the contractor payment and may help with W-9 or 1099 workflows. Money Pro records the bank debit after it syncs. Categorize the synced transaction as Contract Labor, Commissions and Fees, or the closest contractor category.
How do I get a contractor total for tax time?
Run an expense report for the tax year and filter by Contract Labor, Commissions and Fees, or any contractor subcategories you created. Export the report for your accountant or compare it with your 1099 provider's records.
What if I accidentally categorized a contractor as Wages?
Open the transaction and reclassify it to Contract Labor or the correct contractor category. Wages are for W-2 employee payroll, while contractor payments usually belong in Contract Labor or Commissions and Fees.
Related Articles
- Tracking Payroll Expenses in Money Pro
- Money Pro Expense Categories
- How to Track Expenses in Money Pro
- Money Pro Tax Reports
Still need help? If you still have questions, contact our support team.