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.
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