Get familiar with the easy steps to create and file 1099s with QuickBooks Desktop.
QuickBooks Desktop software has brought a big respite in the sphere of filing payroll taxes as you can file your taxes without any hassle through this software. Users can now conveniently create and file 1099s in QuickBooks Desktop, which are necessitated while paying in cash, direct deposits, or check. These comprise 1099-NEC and 1099-MISC. After filing, you can mail the copies to your contractors. This article will brief you on the procedure to create and file 1099s. So, make sure that you navigate through this article till the end.
Who needs to File 1099s with QuickBooks?
The creation and filing of 1099s are very important for the following:
Filing 1099s is indispensable when you make payments to contractors in different forms like cash, direct deposit, and checks.
If you are an employer and have hired vendors or freelancers, then in that case, also the filing of 1099 is essential.
Also, under the withholding rules, if you have withheld the federal income tax, then filing 1099s is important.
Procedure to create and file 1099s in QuickBooks Desktop
Let us check out the step-by-step procedure to create and file 1099s with QuickBooks Desktop. Perform the below-mentioned steps in the same order in which they have been listed.
Step 1: Provide the contents of the report and the time
Initially, you should know the purpose for which you are filing 1099, whether you are an employer paying your vendors, or contractors, or you have earlier withheld the federal income tax. Furthermore, you need to know the filing date of the 1099s, which are due by 31st January. Also, note that the tax form needs to be filed online before 28th January.
Step 2: Set the 1099 account
All the payments that are made to the contractors should be categorized as nonemployee compensation. If you have opted for several different cash payment types, then, in that case, characterizing contractors as per the payment types is preferable. For such users, the filing of both 1099s types is important.
Step 3: Updating QuickBooks is the next step
Having set up your 1099 account, the subsequent step is to get your QuickBooks Desktop software updated to the latest release. For that, follow the steps given below:
Initially, you need to launch the QuickBooks Desktop.
After launching the accounting software, you need to hit on the Help menu and tap on the Update QuickBooks Desktop option.
Head for the Update Now option.
Hit on Reset Update.
Now, opt for the Get updates option.
Restart your QuickBooks software after the successful completion of the download process.
The installation process will automatically commence when you restart QuickBooks.
The next step is to create 1099s.
Step 4: Creating 1099s in QuickBooks Desktop
The procedure for creating your 1099s in the QuickBooks software will become quite easy if you follow the below-given guidelines carefully.
You are initially required to visit the Vendors menu.
Follow it up by opting for 1099s forms.
After doing that, the next action involves the creation of a backup of your company file.
Now, opt for Get started option. You can create both the 1099-NEC and 1099-MISC forms herein.
Now, hit on all the vendors/contractors for whom you are seeking to create the 1099s form.
Subsequently, hit on Continue.
Thereafter, examine if all the entered information is correct.
You may edit the entered data by just double-clicking on a certain vendor and then hitting on Continue.
Subsequently, tap on the drop-down menu in the Apply payment to this 1099 section.
Choose the account connected to a specific payment. The account is already mapped to another 1099 form, as indicated by grey boxes.
Hit on Continue once you've mapped the vendor payment accounts.
For elaborate information on the payments included in or excluded from the 1099 form, you are supposed to hit on View Excluded Payments or View Included Payments options.
Any electronic transactions can now be taken out of the 1099 form.
Check the amount listed against each vendor's name for accuracy.
Then, hit on Continue.
Whether to print or e-file the 1099s is up to you.
Take note of the following points
You should be aware of the following:
The majority of organizations opt for Box 1 on the 1099-NEC form for nonemployee compensation.
For any doubts, you should reach out to our support team, which comprises certified accountants. If you have doubts about whether the recent regulation changes have no bearing on how you should report these taxes, you should reach out to our experts to get the query cleared out.
Step 5: Transferring data into 1099
The actions listed below should be adhered to in order to create a Tax1099 Account:
Initially, hit on 1099 E-File Service to proceed. This option will be accessible soon after you've generated your 1099 tax forms.
Now, you are supposed to Register for a Tax1099 Account or login if you have already created one.
Now, import/transfer the tax data created in QuickBooks Desktop to 1099s. For this, adhere to the on-screen instructions.
Step 6: Steps for e- filing your 1099 tax forms
You can e-file your taxes after importing the 1099 tax forms made in QuickBooks Desktop into the Tax1099 account. To do this, adhere to the instructions below:
By selecting a vendor's name or the edit button, you can update any of the information.
You are supposed to pick the Update option.
To file state 1099s, you need to provide the necessary information in the relevant state boxes.
Then, choose each vendor and contractor whose taxes you want to e-file.
Hit on Next.
Choose the delivery mechanism for each vendor's copy of 1099. You can choose between the USPS mail, the Email Receiver, or downloading the PDF and forward that manually.
If you want to file 1099s with your state, hit on Next. Choose your state as well. If not, tap on Calculate Tax1099.com Fee.
The Payment Page will now appear on the screen.
Herein, you are required to enter your correct payment information and then hit on Pay & Submit.
If you want to generate and submit the 1099-MISC, repeat the steps.
Step 7: Verify 2099s filing status
The following actions should be followed to check the status of your 1099s' filing:
To begin with, access your Tax1099 account and log in.
Afterward, tap the plus sign. It is located in the page's upper right corner.
Thereafter, you need to check the Status check box
The reference number has nine digits.
Hit on Check Status.
That brings us to the end of this article. We wind up hoping that you got familiarized with the process to create and file 1099s with QuickBooks Desktop. The process should be quite convenient after following the walkthrough laid down in this article. If you have any Tax-related queries or are facing ancillary technical issues in QuickBooks Desktop, then, in that case, feel free to contact our 24/7 QuickBooks technical support team via our helpline i.e, 1-800-761-1787.
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