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Independent contractors are people who carry out independent trade, business, etc. to provide services to the public. When the user pays at least one vendor/ contractor more than $600 in a year, then you will need to e-file 1099 MISC forms to IRS. Simultaneously, you need to give copies to contractors so that these can be used to file their tax returns.
The user can complete 1099-MISC filings via QuickBooks Online in few easy steps. Intuit 1099 e-file service is another good option to complete these forms. The user can prepare the 1099s in QuickBooks and then file forms with the 1099 E-file service, else print and mail forms to IRS and the contractors.
Note: Before you start to E-File 1099 form, then you need to check deadline dates, verify contractor information & prepare 1099 in QB.
In this article, we will study and learn how to Prepare form 1099, E-file 1099 form, which payments are included /excluded, etc.
Preparing 1099 in QuickBooks
The first move in the process is to prepare 1099 forms in QuickBooks. This is a must whether you are looking to E-file, print, or mail 1099s. Perform the below steps.
- First, navigate to the ‘Workers’ option and select ‘Contractors.’ (alternatively, you can go to Expenses >> vendors)
- Next, Click prepare 1099s
- Press on ‘Let’s get ’
- Ensure the details are correct- these are user’s company name, address, & Tax ID.
- Now, mark the boxes that reflect the type of payments made to contractors this year. Now choose ‘Expense account’ where the user will be able to track payments and press ‘’
- Make sure all ‘Contractors’ are there, and their details are correct.
- Click NEXT
- Now, review ‘payment tools’ for every box. The excluded payments are generally the ones paid by Credit Card which is then issued to IRS by the credit card issuer
- Click ‘Complete preparing ’
- Click ‘Navigate to 1099 E-file service to e-file 1099.’
Learn everything about the QuickBooks 1099 wizard at QuickBooks support number +1-805-257-5030.
E-File 1099 Forms:
E-Filing can be easily completed with intuit e-file service in three easy steps.
Step1- Fill 1099 forms
- First import the form
- Then Auto-fill with the Intuit payroll
Step2- Give contractor forms
- Make 1099 forms for the Contractors
- Email/Print Contractor copies
- Now download for records.
You can also contact QuickBooks support number to complete the process, and along with E-Filing you can avail the below services:
Step 3- E-File with the IRS
- Now File 1099 form Online. (you can do this even on the deadline day)
- First-class mail will be sent to contractors containing the mail copies.
- Assured submission of contractor copies well within the timeline
- Contractors will get their copy via mail in the following week.
What type of Payments to be included/ excluded?
If contractor payment was made by credit card, gift card, debit card or third-party network, for example, PayPal then the user needs to exclude those amounts from 1099 form.
The IRS needs these amounts for Payment Settlement companies.
In case the user requires to edit contractor payment, then carry out the below steps:
- Check correct boxes/categories are selected and adequately match with QuickBooks accounts to track payments.
- Ensure that list shows right tax year and vendor type ( as per the 1099 requirement)
- Note any payments that are there in the Excluded Usually, these are credit card payments that are made to the vendor, and the credit card company will report these.
- In case the user requires to add/ edit a vendor payment then navigate back to Payment in QuickBooks and then make the changes. Once complete, then come back and complete finishing 1099s forms.
Thanks for reading this article. Filing E-File tax form 1099 is an essential aspect of tax filing and keeping accounts updated. Above given are some important aspects of it. If you have any questions or doubts, you can speak to a technical expert at QuickBooks Enterprise support number 1-805-257-5030.
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