If your business employs independent contractors, then you are required to prepare 1099-MISC forms. A 1099-MISC form is a tax form used to report miscellaneous income to the IRS. It is used to report income earned by independent contractors, fees, commissions, rents, or royalties paid, and payment for prizes, awards, or legal services. If you paid an independent contractor more than $600 dollars last year, you are legally required to report it to the IRS using the 1099-MISC form. Remember to prepare 1099 forms and send a copy to each contractor by January 31st. You must also mail a copy of these forms to the IRS by February 28 along with a Form 1096.
QuickBooks Online is # 1 in cloud accounting for small businesses1. It organizes all of your accounting data in one central location so that you can easily manage your business's bookkeeping, billing, expense tracking, and other accounting activities. QuickBooks Online Plus includes features that make it fast and easy to track 1099-MISC information and it makes it easy to prepare and print 1099-MISC forms. You can access your accounting data and prepare 1099 forms anytime and from anywhere with QuickBooks Online Plus. Try it for free.
QuickBooks Online Plus is the easy way to prepare 1099 forms for independent contractors
QuickBooks Online Plus guides you through the process of preparing 1099 forms. Simply go to Vendors > Vendor List and click the button that says Prepare 1099-MISC forms. First you will setup vendors and accounts, then you will preview 1099 and 1096 information, and finally you can print the 1099-MISC forms. QuickBooks Online Plus guides you step-by-step using intuitive screens, making it easy to prepare 1099 forms and print them so that you can send them to the IRS and to your contractors.
To begin, click the Select Vendors button and choose the vendors (contractors) that you would like to track for 1099 purposes. Then, click on the Assign Accounts button to choose the accounts that were utilized when paying vendors (contractors). Next, you can review the information for accuracy by scrolling down to Preview 1099 and 1096 information. The data you have entered appears here and it's an easy way to review each item for accuracy. You can even click on the data here to make edits on the fly.
IRS guidelines require that you exclude payments made via credit card or other 3rd party payment systems in the standard 1099. QuickBooks Online Plus automatically organizes this for you. When you issued payment, you chose the method of payment used (in this case, credit card, PayPal, or other 3rd party payment systems) and QuickBooks Online Plus automatically added the corresponding vendors (contractors) that received one of these payment types to the "Total 1099 Payments Excluded" category for you. You can see them listed in the column called "Total 1099 Payments Excluded."
At the bottom of the screen you will see the Summary for 1096 section. QuickBooks Online Plus will not print out the 1096 for you, but it does provide you with the necessary data you need to complete Form 1096. In this summary panel you will see the total number of 1099 forms and the total of all 1099 payments made.
Easily print the required number of 1099-MISC copies for each vendor (contractor) from the Print section at the bottom of the screen. QuickBooks Online Plus makes it easy to prepare 1099 forms.