US-Based Vendors in Justworks

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How to Add a US-Based Vendor

If your vendor does not have a Justworks vendor account, please follow the steps below to add them which will prompt them to create an account. Please note that some vendors may have an existing Justworks vendor account from past work performed for other clients. If this is the case, please contact the Justworks Customer Support team and ask them to link the existing vendor's account to your company. They can be reached at support@justworks.com and 888-534-1711.

Steps to Add a New US-Based Vendor

From Home, navigate to People and select + Add in the upper right corner.

This will redirect you to the Invitation Center where you can select Add Vendor.

Make sure Vendor (1099) is selected in the drop-down box and enter the business name and the name and email address of your point of contact. It’s important to confirm the legal business entity name is entered exactly as it should appear on the 1099 form. Once you click Add New Vendor, they’ll receive an email to set up their own account.

Please note, if a vendor chooses to be paid under their Social Security Number instead of an EIN, they'll automatically be categorized as a contractor.

Once the vendor has been invited, they will receive an email notification.

We recommend sharing this Vendor FAQ with the vendors you invite. It addresses common questions, which may help save some back and forth.

Please note: By default, Justworks will take care of filing any necessary 1099 forms with your US-based vendor and with the government. For vendors who complete a Form W-9 in Justworks, the name, EIN, and address on their 1099 come from their signed W-9. You can indicate Do not File in the vendor's profile under Settings to avoid generating a second form if you're handling 1099 filings for a US-based vendor externally.

What your vendor will see

When a vendor accepts their invitation, they'll complete a Tax Information (IRS Form W-9) step before their final onboarding review. Form W-9 is an IRS form that confirms the name, Taxpayer Identification Number (TIN), federal tax classification, and address that should be reported on their Form 1099. Your company is the W-9 requester, and Justworks provides the tool to collect it. In this step, vendors:

1. Review their business name, Employer Identification Number (EIN), and address, which are filled in from earlier steps.
2. Select their federal tax classification. If they select C corporation or S corporation, they'll see a note that corporations generally don't receive a Form 1099.
3. Read and agree to the IRS certification statements.
4. Sign electronically.

If you entered a vendor's business name or EIN for them when you invited them, they'll need to re-enter or confirm that information themselves before they can sign.

Their signed W-9 is saved as a PDF in their Justworks account under Documents. You can also view and download it from Documents.

If a vendor is subject to backup withholding

Justworks doesn't support backup withholding for vendor payments. Because of this, a vendor who reports on their W-9 that they're subject to backup withholding can't be onboarded through Justworks. You'll see a reminder about this when you add a new vendor in the Invitation Center.

If a vendor you invited reports that they're subject to backup withholding:

1. You'll receive an email and a notification in Justworks letting you know their onboarding can't proceed.
2. You should reach out to the vendor directly to discuss next steps.

Paying US-Based Vendors

Paying vendors is just as easy as paying employees and contractors. Enter the amount, payment date and tax classification, and the payment will be scheduled. Both you and the vendor will receive notifications about when payments have been scheduled, modified or canceled. You’ll be able to see outgoing vendor payments on your forecast calendar along with employee and contractor payments.

For more details, visit our Scheduling US-Based Vendor Payments article.

Adding External Payment Amounts

If you’ve paid this vendor outside of Justworks, you can add that value to their account at any time. From People > Vendors, you can click on their profile, and scroll down to settings.

Here, you’ll let us know whether or not you want us to file a 1099 for them, and which boxes any external payment amounts for the year should appear on their 1099.

Disclaimer

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.