How to Set Up 1099 Accounts in Quickbooks

November & December QuickBooks® 1099 Year End Tasks

A. Select those accounts within the chart of accounts that could possibly contain payments to 1099 vendors

Verify that you have correctly coded your current year vendor payments, so they will be included in the QuickBooks® 1099 MISC tax form by taking the following steps:

Review your 1099 mapping. Determine if any accounts in your chart of accounts will ever contain QuickBooks® 1099 vendor payments.

Edit menu > preferences >Tax:1099 Preferences > Company preferences > click on the "click here to map your accounts"

Next, for those identified accounts within the chart of accounts that may include a payment made to a QuickBooks® 1099 vendor make sure the account is mapped to the correct box on 1099 Misc tax form:
Select box 7 for payments made from QuickBooks® software for services or
Select box 1 for payments made from QuickBooks® software for Rents.

If you would like help with this process, give us a call at 800-216-0763 and find out about our pay per call for QBALANCE support for your QuickBooks® software.

B. Verify that your UNINCORPORATED vendors are marked correctly in QuickBooks ® software.

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Review this all-inclusive vendor report (step 2). For each vendor, you believe meets the 1099 year-end criteria verify that the name and amount appear on the default 1099 report. As a reminder the 1099 criteria
is entity type; payments type and amount; and payments for services or rents.

Troubleshooting the Default 1099 Tax Form Summary Report

i. During your review, when the vendor is a corporation make sure you have listed with the name the appropriate suffix. (Corp., Inc. or PC, etc.). Specifically, to modify the vendor name return to the vendor center and edit the vendor record.

ii. Is a vendor missing from the default QuickBooks® 1099 report? You need to verify that the vendor's record in the vendor center has that vendor tagged as "eligible for a 1099":

Vendor center > edit the vendor > click on tax settings and mark that the vendor is eligible for 1099. Furthermore, if you do not have the vendor's tax id temporarily enter 99-9999999 as an ID.

Likewise, if you are unsure what entity type the vendor is, mark them eligible to receive 1099. Continue your review until you have successfully marked all potential QuickBooks® 1099 vendors as eligible to receive 1099. In fact, the IRS does not penalize for sending 1099 when it is not required. Contrarily, the IRS can assess a penalty when you fail to send 1099 MISC tax forms.

C. Reprint the default QuickBooks® 1099 year-end report

The QuickBooks® 1099 standard report is now ready for your use as an important tool in gathering missing information. Thus, for those vendors you have marked with a tax id of 99-9999999, you should request a completed W-9 form. A W-9 form will let you know if the vendor is a corporation and provide the correct spelling of the vendor name and provide their EIN or Social Security number. You can update the vendor record accordingly, changing the tax ID and if applicable un-marking eligible for 1099 (when a corporation).

Is the vendor still not appearing in the default QuickBooks® 1099 report? Determine which chart of accounts the vendor payments are posted to. Next, review your 1099 mapping again and make sure those accounts are pointing to Box 7 or Box 1 of the 1099 form. Remember, if the vendor was paid with a credit or debit card and had less than $600 paid in cash or checks, you are not required to send 1099.

As a result of your efforts above, when it comes time to print the 1099 MISC year-end tax forms, you will have no problems.

Order Your QuickBooks® compatible 1099 MISC Tax Forms in December

The final December QuickBooks® 1099 year-end task – Order 1099 NEC Forms HERE or ORDER 1099 MISC Forms HERE

Count the number of potential 1099 MISC tax forms and place your order timely, so the forms are delivered by 12/31. Give us a call @ 800-216-0763, we can help you with your order and answer any questions you may have.

We sell 1099-NEC , 1099-MISC and 1096 tax forms for your vendors in packages that can be purchased in increments of 25, 50, 75, 100 and in groups of 100 compatible with QuickBooks®. Each package comes with 3 1096 transmittal forms. You can add additional 1096 forms to your order for 25 cents each.

Early in January, you will want to print from QuickBooks® the 1099 MISC year-end tax forms. They are due by 1/31 each year. However, if you can get the forms mailed to the vendors and hold off filing with the IRS for a few weeks, the vendors will have time to review their forms and alert you of any errors. Fixing 1099 before you submit to the IRS is so much easier than creating a corrected 1099.

We are available to answer any questions you might have about QuickBooks 1099 year-end tax forms.

How to Set Up 1099 Accounts in Quickbooks

Source: https://www.qbalance.com/quickbooks-1099-misc-tax-forms/quickbooks-1099-year-end-planning/

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