In the United States, businesses and individuals must file and report any payments made to non-employees or independent contractors through Form 1099-MISC. QuickBooks Online offers a simple and effective solution for preparing and e-filing these forms, as well as mailing printed copies to contractors at no additional cost when filing through Intuit. This article will guide you through the process of preparing and filing your 1099s with QuickBooks Online.
Before starting, make sure that you have all of the required information, including the legal name, address, and Social Security or Tax ID number of each contractor, as well as the type and amount of payment made. It is crucial to verify this information to avoid mistakes or penalties from the IRS.
Preparing 1099s in QuickBooks Online:
- From the Workers menu, select Contractors, or select Expenses and then Vendors.
- Select Prepare 1099s, and then Let’s get started.
- Ensure your company name, address, and tax ID are correct and match the information found on tax notices or letters from the IRS.
- Select the boxes that represent the type of payments made to your contractors this year.
- Select the boxes that represent the expense accounts where you track the payments.
- Verify that all contractors’ personal info and email addresses are correct.
- Review the payment totals for each box.
- Select Finish preparing 1099s.
- After preparing 1099s, select the E-File for me option.
- Verify your 1099 forms, and then select Continue.
- Review your 1099 forms and select all or the forms you want to submit.
- Enter your billing info, and then select Approve.
- Choose the delivery option for contractor copies.
- Verify or enter missing email addresses for your contractors.
- Select Download and Submit 1099 Forms “Employer: Copy 1 & Copy C” and “Contractor: Copy B & Copy.”
- Submit final forms to submit.
- You can file another set of 1099s by opening QuickBooks Online, selecting Workers from the left menu, then Contractors, and then Prepare 1099s.
- If you need to update an unsubmitted 1099, modify it before e-filing.
It is crucial to e-file your 1099s before January 28th, 2020, at 5:00 PM PT to ensure that your forms are postmarked to your contractors by January 31st, 2020. However, you can still e-file your 1099s through January 31st, 2020, to meet the deadline with the IRS.
If you need to file an extension for Form 1099, you can see Form 8809, Application for Extension of Time to File Information Returns.
If you are using QuickBooks Desktop, the process for preparing and filing 1099s is slightly different. However, you can still use QuickBooks to simplify the process.
If you are unsure whether you need to file a 1099 with your state, you can find out by checking your state’s requirements. It is important to check this information since each state may have different requirements and deadlines.
In conclusion, filing and reporting payments made to independent contractors or non-employees is a crucial part of running a business in the United States. QuickBooks Online offers an efficient solution for preparing and e-filing 1099 forms, which can save you time and avoid costly mistakes. By following the step-by-step process outlined in this article, you can prepare and file your 1099s with ease and confidence, ensuring compliance with IRS regulations and avoiding penalties.
What are Federal 1099s?
Federal 1099s are forms required to report non-salary payments made to contractors or freelancers.
How can QuickBooks Online simplify the process of preparing and filing 1099s?
QuickBooks Online provides a step-by-step guide to prepare and file Federal 1099s, including e-filing and mailing printed copies to contractors.
What is the process to prepare 1099s in QuickBooks Online?
To prepare 1099s in QuickBooks Online, you need to select Contractors or Expenses and then Vendors from the Workers menu, select Prepare 1099s, and follow the steps listed in the guide.
How can you e-file 1099s in QuickBooks Online?
After preparing 1099s, you can select the E-File for me option, verify the forms, select the forms you want to submit, enter billing info, approve, and choose the delivery option for contractor copies.
Can you update an unsubmitted 1099 in QuickBooks Online?
Yes, you can update an unsubmitted 1099 in QuickBooks Online by modifying it before e-filing.