Quickbooks Tips: Tracking and Creating 1099s

Quickbooks Tips: Tracking and Creating 1099s

With a Quickbooks Plus Subscription, you can actually set up and track vendor payments for 1099s.

As you add the contractor as a vendor, check “Track Payments for 1099” and enter their Tax ID. If you do not have this, have your contractor fill out and return a W-9 form. This will tell you if they are eligible for a 1099 as well as what Tax ID to issue the 1099 to.

When you enter a check, be sure to make note of what expense account you use. Quickbooks will track these checks with a specified expense account and add it to the 1099 pay. (Hint: use a separate line and expense account for anything that shouldn’t be a 1099, such as reimbursements).

To prepare the 1099s at the end of the year:

  • Click Vendors, then Prepare 1099s at the top of the screen.
  • Review company details and make any necessary changes.
  • Assign the expense account you used to pay the contract to an appropriate IRS defined box. Most of the time, this will be either Box 7: Nonemployee Compensation, or Box 1: Rents.
  • Review all vendor information and make any necessary changes. You can either use intuit’s efile option or print and mail the 1099s on the approved IRS forms.

 

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