Quickbooks has the facility to record your paycheck in Quickbooks 1099 forms. So that you can easily submit 1099 form to the IRS. This facility is beneficial if you hire independent contractors or self-employed. Then you can easily track what and when you have paid to the contractor. And Quickbooks easily generate and print 1099 forms.
Hence you can provide it to an independent contractor, and the contractor will get all the related financial data. So let’s see what is Quickbooks 1099 forms in Quickbooks.
What is Quickbooks 1099 Form
1099 form is a kind of document, used for providing details of self-employed paychecks. And this document is useful for IRS, to examine how much you’re earning and accumulate tax during the year.
1099 tax form includes all the paychecks received by the individual contractor during the fiscal year. 1099 form officially known as 1099-MISC and also know as nonemployee compensation.
So if you are self-employed and earn more than $600 during the year, then you have to submit a 1099 form to the IRS. Quickbooks generate 1099 form for you and you can print it or you can submit online by Quickbooks.
How To Enable 1099 option In Quickbooks
- Open Quickbooks online and click on Edit menu
- Select Preferences from the dropdown menu and click on Tax-1099
- After that click on Company Preferences tab, Then select Yes inside the “Do you submit 1099-MISC form” then click on OK
How To Set up Vendor
- Open your Quickbooks and click on Worker tab from the side menu
- You will redirect to a new screen where the Employee and Contractor tab appear. A contractor in Quickbooks is a vendor that has been marked as a 1099 contractor
- Click on Vendors tab >> New Vendor
- Fill the detail and save it, and check the “Track payment for 1099” option. you have created a vendor.
Note: The Track Payment For 1099 checkbox says, if we are dealing with contractors, that we want to issue a Quickbooks 1099 form. At the end of the year, we have to hit that checkbox. Whenever we hit checkbox Quickbooks will copy that vendor info over to that worker/contractor section. Which is then where you are going to be able to manage all the 1099 information.
How To see List of Vendors/ contractor
- Open Quickbooks online
- Click on workers tab from the side menu bar
- And click on the contractor, you will get a list of vendors here.
How To Prepare 1099 vendor/ employee in Quickbooks
- Open Quickbooks and vendor list
- Click on the prepare 1099 and then click on continue
- The first box you will get all information about each vendor
- And if any information is missing then you can update from here, like last name and address.
- Quickbooks also has facility during create vendor. It will ask you to send an email to the vendor to provide their own w-9 information
- And via this email, they can know which company asks you to enter w-9 information, and the vendor can log in with Quickbooks self-employed login id.
- Once you log in with Quickbooks self-employed id, it will automatically update tax id and name or social info to the Quickbooks online site, etc.
How to print 1099 in Quickbooks desktop
Quickbooks’ internal revenue service (IRS) 1099 tax form is very easy to print. Just you have to follow the below steps.
- First, go to vendors menu and you need to click on Print/E-file 1099s
- Then click on 1099 wizard>> get started
- The vendor that need 1099 form, check the checkbox and click continue
- Make sure each vendor’s 1099 data and click on continue
- Enter your vendor payment account in box 7 and then click Continue
- Then you have to review payment for exclusions and again click on continue
- Now its time to check 1099 entries and double click on the amount to review the transaction and click continue
- Finally, click on Print 1099s and then click on Save & Close
Quickbooks 1099 form allows you to automatically create and manage paycheck to vendors. We have given complete details about create a vendor and prepare 1099 form in Quickbooks. So follow the steps and enjoy working with this software.