To set up contractors in QuickBooks, open the Payroll menu and then click on Vendors or Contractors (use whichever version you currently have). Then click on Add a Contractor and fill in the contractor's full name, email address, tax info, and W-9 info (if necessary). You can also invite the contractor to fill out their profile securely. Be sure to clarify if the person is a 1099 contractor for year-end tax purposes. You can assign different expense accounts so you can track payments. Once your contractor is set up, using them in QuickBooks is easy. You can make payments, track contractor expenses, and prepare your 1099 forms during tax season. Overall, this process will help you stay compliant with IRS rules and make sense of everything when it comes to bookkeeping for any reconciliation of contractor payments in QuickBooks. Finally, be sure to review contractor profiles for accuracy and check tax form updates from time to time.