QB Issue Resolution:
There is no such thing as a 1099 employee
if you are paying an independent contractor and if they are eligible for a 1099, no you do not withhold taxes
unless – when they fill out the IRS form w-9 you give them, they indicate that they are subject to back up withholding (in which case I would look for another contractor – personal opinion)
1099 payments made by check or cash are reportable, so if you get them to accept a credit card or paypal payment you have no reporting to mess with
Resolution for Issue 'Do I need to withhold taxes for 1099 employees?' available: Yes (Solved).
Source: Intuit Community forum.
Do I need to withhold taxes for 1099 employees?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.
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Error Recovery for 1099 employees [Canada]
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