We just updated to Quickbooks Enterprise 2021 (Contractors edition). I have spent over an hour trying to find out any information about mapping accounts for the new 1099 NEC vs 1099 Misc. In the new version, tax line mapping is not even an option. In addition, the 1099 wizard still refers to 1099misc. I've read the instructions on how to create new accounts and move ALL your data in the older versions to the new accounts to force those versions to work. Simple question... why do they not just adjust the Map Accounts screen in the 1099 wizard to pick the NEC form and box or the 1099 misc form and box. That would seem reasonable. What I do not find reasonable is asking users to spend hours of work, manually moving entries, which creates all sorts of opportunity for human error. Surely there is a better solution. Second, it makes me very nervous I can not find anyway, as of today, to report on 1099 NEC in the new Enterprise. It is beyond time for me to order my preprinted forms.
I know this wasn't an easy process for you, dgwpeach.
Let me help and get the 1099 NEC working on your QuickBooks file.
The IRS has revised the 1099-MISC form and rearranged the box number for reporting. That's the reason why they separated non-employee compensation to a new form called the 1099-NEC for the tax year 2020.
To create these forms this year, there are a few steps you can take now to ensure your accounts are properly mapped for both the 1099-MISC and 1099-NEC forms and reports.
That said, you need to adjust your Chart of Accounts to ensure accounts are set up specifically for each form. Check out this article: How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing, then go to QuickBooks Desktop Payroll and follow Step 1 to 5.
To learn what forms and boxes you need to choose, feel free to read through this page: Understanding payment categories for the 1099-MISC and 1099-NEC.
Let me know if you have follow-up questions by commenting below. I'm always right here to help set up the new form.
I've read this article several times. Let me get more specific with my questions. I have exactly 1 1099 misc to print in this client's company for rent expense. The other 250+/` will be 1099-nec. Is there an option to just map the 1099 misc rent to a "new" chart of accounts (already segregated btw)? Please be aware that this company capitalizes subcontract labor as it rehabs properties it owns itself (as do 5 of my other clients), therefore creating 1 "expense" account for the NEC accounts will not work. All costs are accumulated in a current assett account (similar to WIP), segregated by job, then expensed under cost of good sold upon sale. On 12/31 there will be several houses in the WIP account, and I would loose cost intergrity if I move these to any other account. Are you telling me that Quickbooks is only creating a capability to map the 1099 nec to 1 account? Are you telling me I only need to create a new account if an existing account needs to file on both forms? I understand that 1 account can not be mapped to both the 1099 NEC and 1099 misc. The article tends to imply that if you need to print both 1099 misc and 1099 nec, then you need to create a new 1099 Nec expense account for subcontract labor expense (not my situation), and by the way we'll walk you through creating the Journal entry that should only take 30 minutes.... What if I have 250 vendors spread over multiple capitlized jobs??? Will I have the capablility to just map my current accounts to the 1099 NEC if none of my accounts need to be mapped to both 1099 NEC and 1099 Misc???
Hi there, @dgwpeach.
Allow me to share some details about handling 1099-NEC and 1099-MISC in QuickBooks Online.
The 1099-NEC is now used to report independent contractor income. On the other hand, the 1099-MISC form is used to report miscellaneous income such as rent or payments to an attorney.
I suggest creating a new account even if you can match the existing one to easily identify the account when mapping it.
Regarding the journal entries and other verification of the tax forms, I'd recommend contacting an Accountant to make sure it has been recorded properly. These are the reasons you need to ask assistance from them:
To map your accounts, you can check out Step 3 Create a new account in this article: How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing.
Also, my colleague has all the articles you need to successfully file the form.
You can tag my name in the comment section if you have other questions. I'll be here to help. Take care.
REALLY??? Are you just openly trying to insult me???? I AM AN ACCOUNTANT! With 30 years of experience. My response makes that clear. The problem here folks is that NON-ACCOUNTANTS are writing this program without the experience of running an accounting firm. The customer service "team" do not have the financial training to even understand the issues with the "fix" the programmers have come up with. I have several other options for my 1099 compliance needs which I will be using. I now know my task for my clients in the future is to find a platform that aligns itself to the small business accounting community and actually listens to its users concerns instead of assigning uninformed "agents" or bots to answer serious concerns brought to its attention.
As mentioned in all of these threads and posts, the answers we are getting are unacceptable. I would characterize this one as dismissive and condescending. Has QB not realize that their response is turning into a customer service nightmare? I would love to get the update and see everything works just as it should without jeopardizing filing deadline time constraints. I expect more for my 20+ client companies.
I appreciate your prompt reply, @dgwpeach.
Please know this isn’t what I want you to feel. I can imagine the situation you’re in right now. Allow me to join this thread and provide additional information about mapping your accounts for the new 1099 NEC.
As of now, we don't have a specific time frame as to when the 1099 Vendor wizard will be updated to have the new 1099 NEC in QuickBooks. Rest assured our product team is working diligently in implementing this in the future.
To be notified of any news and updates about QuickBooks Desktop (QBDT), I recommend checking our Product Updates page for reference.
Also, in regards to mapping your 1099 MISC rent to the new account, creating a journal entry or editing your existing payments to the new account is our only option for now. For the detailed steps, you can refer to Step 4 of the article provided by my colleagues above.
Additionally, yes, to file both forms, you’ll have to create a new account to easily track those separate payments in QuickBooks. For additional details about this process, you can refer to this link for guidance: Understanding payment categories for the 1099-MISC and 1099-NEC
Let me also share these articles that can guide you in filing your forms seamlessly:
If you have any other concerns or follow-up questions about filing your forms in QBDT, you can always get back to me in this thread. I’d be happy to assist you. Keep safe.
I have read all the answers and I believe you don't understand the question. In version 2020, for the new requirements to file 1099-MISC and 1099-NEC, there is the feature to print out both forms but in the new version 2021, you still have features from when we just needed to print out 1099-MISC. How is this possible? It is so stupid.