|
Producing 1099
Forms with QuickBooks™ Software
QuickBooks can print on 1099s or run reports to aid in 1099 preparation. Processing 1099s on QB is basically a three-step operation: flag vendors who MIGHT get 1099s, identify accounts from the Chart of Accounts that could be reported on 1099s, and then run the 1099s or reports. QB will look through the designated accounts to see which payments were to 1099-eligible Vendors, determine if the totals paid each vendor were high enough to require 1099 reporting, and then carry the appropriate totals to the designated box of the Form 1099 report or form layout.
You flag vendors who MIGHT get 1099s in the Vendor List by checking the box in the Additional Info section of the Edit Vendor dialog. You can enter their tax id there as well. Be sure the Vendor name matches the IRS record for that tax id. In other words, use "Steven Van Zandt" not "Little Stevie".
Quality control: Check for near-duplicates of vendor names. For example, it's easy to end up with one vendor called "John Schachter" and another called "John Schachter + Associates". It's also easy to end up with a vendor who could get a 1099 whose name appears in the Other Names list. QuickBooks will NOT generate 1099s for Other Names. Change such entities to Vendors using the Change Type command from the Edit Name window. Merge duplicate Vendor entries as needed.
From Edit:Preferences: Company Preferences: Tax :1099s you identify the Chart of Accounts items that should be considered for inclusion in a given box of the 1099 form. For example, you might tell QuickBooks to go through all transactions coded to "Rent Expense" and to put the totals for any 1099-eiligible payees in the "Rent" box on Form 1099-MISC.
Typically, you will link several accounts to the "Non employee compensation" box: repairs, subcontractor help, professional services, office expenses, and so on.
Then you can run the 1099 reports from the Vendors and Payables Reports submenu to see who is being included and to make sure you have names and tax ids in there correctly.
And/or you can run 1099s themselves from the File:Print Forms menu.
|