Filing of 1099 is important as they pertain to your filing of taxes and are important for making direct deposits. QuickBooks offers an easy way to create and file 1099s. Two types of 1099 forms exist - 1099-NEC and 1099-MISC. Read this full blog to know how to create and file 1099s with QuickBooks Desktop.
Need to file 1099s in QuickBooks
It is important to file 1099 for paying contractors in cash or direct deposit.
It is necessary during the recruitment process for contractors.
Plays an important role if the income tax is withheld.
How to create and file 1099s with QuickBooks Desktop?
The following lines will brief you with steps to create and file 1099s with QuickBooks.
Step 1: Provide report contents and time
The user should know the reason of filing Form 1099. This will be required when providing report contents.
Also, knowledge of “filing due date” of 1099 form (January 31) is also important. The tax form should be submitted before January 28.
Step 2: Set the 1099 account.
The user should classify payments made to contractors as non-employee compensation and furthermore, classify contractors according to the payment type if they have chosen multiple cash payment methods.
Step 3: Update QuickBooks Desktop
Run QB Desktop, them go to Help, and opt for Update QuickBooks Desktop.
Choose Update Now, then click on Reset Update.
The final step is to click on Get updates. Now, run QB again and install the updates downloaded.
Step 4: Creating 1099s with QuickBooks Desktop
Head to Vendors in QB, then click on 1099s forms, and create backup of your company files.
Hit on Get started and acquire the 1099-NEC and 1099-MISC forms.
Go with the Continue tab and check the accuracy of the data.
Choose a certain vendor, then hit on Continue. Now, edit the data if required.
Then, Apply payment to this 1099.
Choose account linked to the given payment. Grey boxes signify that the account has already been matched to another 1099 form.
Then, choose the Continue tab.
Go for “View Excluded Payments” to know the full information regarding the payments related to the 1099 form.
Now, hit on Continue.
Step 5: Move data to 1099 form
Choose 1099 E-File Service and then register for a Tax1099 Account.
Then, import/transfer tax data in QuickBooks Desktop to 1099s.
Step 6: Filing 1099 tax forms with QuickBooks Desktop
The information can be edited by clicking on vendor name or the edit button.
Now, click on Update and enter information in relevant fields.
Opt for each vendor and contractor whose taxes you want to e-file, then click on Next.
Opt the delivery mechanism corresponding to each vendor copy of 1099. The available choices are USPS mail, Email Receiver, or downloading the PDF and then form forward that manually.
Choose the option, then click on Next, also choose the State.
Then, provide the correct payment information, and click on Pay and Submit.
For the creation of 1099-MISC, same steps need to be adhered to.
Step 7: Verify status of 1099s filing
Just login to access Tax1099 account, then go for the “plus sign”.
Here, check the “Status” check box and the form should be filled.
Winding Up!
This discussion revolved around “how to create and file 1099s with QuickBooks Desktop”. If you have unsolved questions, talk to our QuickBooks desktop support experts i.e., 1-800-761-1787.
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