If you are a business owner and hire a self-employed/vendor to work for your business, you need to file QuickBooks Online 1099 Form when the sum of the amount paid to the vendor exceeds $600. In QuickBooks, the 1099-MISC Form reports the non-salary income. As per the IRS instructions, an employer needs to fill this form on hiring contractors. Reading this blog until the end, you will get to know about the QuickBooks 1099 Wizard and how to generate 1099 information.
Wondering, how to setup 1099 employees in QuickBooks Online? Dial our QuickBooks support number 1.800.417.5147 to get immediate technical leisure
Various Types of 1099 Forms
There are various types of 1099 Forms you can e-file from QuickBooks. Below are some of the most common 1099 forms you may need to file while managing your business:
- 1099-MISC: This form is filed to report the cash or check payments made to the self-employed vendors, or independent contractors
- 1096: 1096 forms can be printed on pre-printed forms and compiles all 1099-MISC forms
- 1099-K: These are the electronic forms that cannot be filled by QuickBooks users, but electronic payments companies submit this form in compliance with the IRS standards.
Things to Keep in Mind before You Generate1099 Forms using QuickBooks
Before you submit QuickBooks Online 1099, you need to understand a few things to make the process smooth and error-free.
- Electronic, debit and credit card payments are not filed in QuickBooks Online 1099 report, but recorded in Form 1099-K by electronic payment companies (American Express, Visa, MasterCard, etc.)
- The summary report of 1099-MISC Form includes the payments made by cash, checks, and not the unpaid bills.
- Change in vendor 1099 status, during QuickBooks Online 1099 e-File also reflects in QuickBooks company file.
- There are a total of 19 payment areas in the MISC-1099 form when you file it from QuickBooks 1099 e-File service, it only supports boxes 1-10 and 13-14.
- You need to provide the vendor/self-employed, the printed copies of QuickBooks Online 1099 Form
How to Perform QuickBooks Online 1099 Filing?
Now that you are aware of the cautious steps essential to create 1099 MISC in QuickBooks, let’s understand the steps involved in accomplishing the task:
- Click Vendors from within QuickBooks, select Print/E-file 1099s and then hit 1099 Wizard
- From the Vendor List, select the vendors, that need 1099-MISC form and then click Continue
- Now edit the cells within the table with the required information to e-file 1099-MISC form and then click Continue to proceed further
- To include the amounts in the payment, select Apply Payments. (You can check-mark, Report all Payments in Box 7 if required).
Note: If you receive a message that says, “Your settings do not match the current IRS thresholds”, click Show IRS 1099-MISC filing thresholds hyperlink and finally click on Rest to ISR Threshold. For any errors while printing the tax form 1099 follow our article How to Fix Printing Errors using QuickBooks Print Repair Tool.
- As per the IRS instructions, you cannot report electronic payments in the 1099-MISC form in QuickBooks. On the other hand, if you have used check payments in the Pay Bills or Write Checks to record the vendor payment, note the payment in the Check-filed. QuickBooks 1099 Wizard automatically records such payments and excluded them from Form 1099-MISC. However, you can review the included and excluded amounts using the options, View Included Payments and then View Excluded Payments.
- Before completing QuickBooks Online 1099 e-File process, review the vendors and amounts summary that will be reported and printed for the vendors
- Click Continue after reviewing the vendors and amounts and complete the process of e-filing 1099-MISC from QuickBooks with the IRS.
Need Professional Assistance For QuickBooks Online 1099-MISC e-Filing!
By following the above-given steps, you can file QuickBooks Online 1099 with IRS. However, if you have any technical issues, or QuickBooks is not compatible to print from the IRS website, get in touch with us immediately. Dial our QuickBooks support phone number 1.800.417.5147 and get QuickBooks Online 1099-MISC forms e-filed by professionals.