In order to create and file 1099’s for your vendors, you will need to have QuickBooks Online Plus.
The first step is to make sure we have all of the vendors information filled out correctly. This includes making sure that you have an EIN (Employee Identification Number) or a SSN (Social Security Number) for each vendor since this is an IRS requirement. To do this:
- On the left navigation bar click on Vendor> Click the vendor name> Click Edit (next to vendor name)
- Fill out the form > Click Save (make sure you check the Track for 1099 box)
Now we are ready to start preparing the 1099’s
- On the left navigation bar click on Vendor> Click Prepare 1099’s in the upper right hand corner
The screen Prepare 1099-MISC forms for your vendors should popup. When it does, click the Let’s get started button. Then follow this step by step:
- Review your company details making sure all info is included
- Pick all the categories that apply to your vendors and then decide which QuickBooks accounts you use to track the payments. The most common 1099 category for small businesses is Box 7: Non-employee compensation. Check with you accountant. Tax professional if you’re not sure which one to use. Once done, click next.
- Verify that you have all the vendors on this list that you want to create 1099’s for. If any are missing, then click on Select 1099 vendors in the upper right hand corner. If any vendor info is missing (it will say it in red letters) then click on the Edit button for that vendor. Once you are done, click next.
- On the Review 1099 vendors and payments screen, you will first make sure you have the correct year. Click the funnel (or arrow) right above Vendor. Select the correct year and make sure we choose vendors who meet the threshold. Then click next.
- Select the filing method of your choice and you are now done!