QuickBooks 1099 Form Filing

How to E-File 1099 From in QuickBooks Payroll

Tax filing and paperwork include numerous forms that need to be completed and filed accordingly by the employers. Of these one form is 1099, the basic purpose of which is to differentiate between other types of income that may not be categorised under regular job of the applicant.

Those employees who are not issued with W-2 forms, are generally passed on with 1099 form. They consists of many types of forms on the basis of transactions like Contribution form Cooperatives, Social Security Benefits, Government Payments etc. One type of 1099 form is 1099 MISC form which is one of the most common type.

This form is generally generated for independent contractors who garner it from the companies and employers that have utilised their services. Suppose the employee is working as a freelancer then they will receive the 1099 MISC form to fill and file the amount paid to them. Full details QuickBooks USA Tax File located Guide here .

How to Prepare 1099 MISC Forms

In order to accurately fill and file 1099 MISC form follow the steps below:

1. Gather Information Required for 1099 MISC Forms:

Certain information is required to be put in by the applicant consisting of following:

  • Business Details (Federal Emp ID number, Business Address and Name).
  • Receiver’s Tax ID number (SSN or Federal EIN).
  • Payment Amounts (Amt. paid in accordance with the Boxes Headers).
  • Federal Income Tax Withheld (Amount withheld under Federal Income Tax in tandem with Box 4 in above point).
  • Section 409A Deferrals and Income (Boxes 15a and 15b providing information for 409A deferrals and income along with any other deferred compensation).
  • Local and State Information (All the details regarding the withheld table under State income and taxes).

2. Accurate Information:

Check and recheck the information gathered and provided within the form to ensure all the details are authentic and accurate. Check up the total amount for year end and run the 1096 form to double ensure the details accuracy.

3. Print and Distribute Forms:

The form is in multiple parts which are to be sent to different sectors as detailed below:

  • Copy A to IRS (Internal Revenue Service).
  • Copy 1 to State Tax Department
  • Copy B to Recipient
  • Copy 2 to file along with the State Income tax Return by the Recipient.
  • Filing of 1099 MISC form with Internal Revenue Service – There is an electronic system called FIRE (Filing Information Returns Electronically) through which 1099 MISC forms can be filed. The last date for this form is 31st January of every year.

How to Pay 1099 Contractors / Independent Contractors?

  • Independent contractors or as many call them 1099 Contractors can garner compensation for their services through myriad options as discussed within the contract prepared within the company and the contractor. Of this two methods are:
  • By the Job – One option is to pay the 1099 Contractor as and when the work distributed is done and complete. For example freelance web developers can be provided compensation on the basis of the websites developed by them.
  • Hourly – Another option followed by many companies is by the number hours worked by the contractors. Suppose a program developer will be paid as per the hours put in by the developer on the computer program .

Setting up of 1099 Independent Contractor Vendor

Independent Contractor refers to an individual who is working under an independent business, trade or profession which is open for public service with full control over what tasks will get done and how they will be done.

In order to set them up in accounting software like QuickBooks, follow the steps below:

  • Switch QuickBooks software on and locate 1099 MISC tab.
  • Turn this feature on.
  • Under the new screen select the option of ‘Add a Vendor’
  • Organise the vendors who will get 1099 MISC form
  • Lastly generate an expense account to facilitate vendor payments.

Different Ways to File 1099 Form

Applicant has two options to file 1099 form – one is manually (through the email) and the second is electronically (through online method. In both, manual and digital, applicant will be required to send the Copy A of 1099 form to IRS and Copy B to the 1099 Contractor / Independent Contractor.

The only difference is how they do it, whether manually or digitally.

1. E-Filing of 1099 MISC

To file Copy A of 1099 MISC form to IRS applicant will be guided to do so through FIRE system. For this the form needs to be generated through a compatible accounting software like QuickBooks.

Before employing the FIRE system, however, applicant will be in need of TCC (Transmitter Control Code) for which a form 4419 is to be requested for that can be later on mailed or faxed to IRS. This form needs to be filed 30 days prior to last date for 1099 MISC form.

How to Generate of Old 1099 Forms QuickBooks

  • Applicant can generate old 1099 Forms through following channels:
  • Connect with the Issuing Company
  • Connect with the Tax Preparer
  • Connect with the IRS
    1. Transcripts
    2. Copies

How to Print the 1099 Forms in QuickBooks

In order to Print 1099 Forms through QuickBooks follow the steps illustrated below, however, ensure that the software must be in the single user platform and should have the 1099 form pre-printed.

The steps are:

  1. Applicant can use QuickBooks Desktop 1099 wizard in order to ensure all the details filled are correct.
  2. If the wizard method is employed, then at instruction number 6 choose the appropriate filing method and then click on Print 1099s tab.
  3. Applicants with Wisconsin ID are forwarded a message which should be replied with OK tab to go through print process.
  4. Next select the appropriate date period for the current 1099 form being printed and then click on OK tab.
  5. Now click on the 1099 form that needs to be printed followed by Print tab.
  6. Applicant can go through the form generated by previewing it and also check other details like alignment.

This should print your 1099 Form through QuickBooks without any hassle.

Also check IMP Dates Deadlines for Filling 1099 Form Here

Help For Filling 1099 & 1099 MISC in QuickBooks Pro, Premier , Enterprise or Payroll

Whatever version [QuickBooks Pro, Premier, Enterprise, Payroll, Online] you are using whichever state your business runs, Experts can answer your queries and will resolve any issue you facing while filling 1099 and 1099 MISC.

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