What is a 1099s Form?
A 1099s form is a form of Internal Return Service (IRS) that is given to the vendors who met certain criteria. In other words, this form can be defined as an information return reporting form. Steps to Print 1099s in QuickBooks Online and the main aim of creating the 1099 forms is for reporting payments directly to the Internal Return Service.
The 1099s documents are cash-basis documents. To clarify, these documents are only issued to the vendors who have already paid you. When you issue 1099 to your vendors, you let them know that the payments made by them to you are reported to the Internal Return Service. While in the W- 2 form, you issue this form to your employees.
Moreover, the 1099s don’t include entries of accounts payable, or the outstanding amount that is due by the vendors. These forms only issued to the vendors who have already done the payments in full.
Why you should Issue the 1099s Form?
According to the US tax laws, you are required to issue the 1099s form if you have received payment from vendors for more than $600 in the previous year. If you provide any misleading or incorrect information regarding this, you will be eligible for the penalty charge of $550 per form.
Kinds of 1099s Forms
There are two kinds of 1099 forms that are as follows:
- 1099 MISC: This kind of 1099 form is usually used for reporting rents, royalties, and other uncommon types of income you received throughout the year. In 2019, the non-employee compensation was also included in the 1099 MISC.
- 1099 NEC: As the name suggests, this form includes Non-Employee Compensation reports from 2020. It was included in the 1099 MISC in 2019.
Whom Should You Issue the 1099s Form?
The following is the list of people to whom you should issue this form:
- The vendors who have paid $600 or more over the course of the year.
- Vendors did not pay for the tangible goods, those goods were only being used as a part of service, rather than the actual purchase.
- Not a part of LLC or a corporation.
Steps to Print 1099s in QuickBooks Online
The following are the steps that help in printing 1099 in QuickBooks Online
Total Time: 15 minutes
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Step 1
Go to the ‘Reference’ tab in the left menu.
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Step 2
Choose ‘Vendors’.
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Step 3
The screen will display the ‘Vendors’ window.
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Step 4
Click on the option of ‘Prepare 1099’.
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Step 5
Make important changes by clicking on the ‘Pencil’ icon.
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Step 6
Edit your company’s name and address ID.
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Step 7
Review the entered information and click on ‘Next’.
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Step 8
Choose the kind of payment like rents, royalty or non-employee compensation.
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Step 9
Click on the ‘Continue’ option.
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Step 10
The screen will display the vendor’s information.
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Step 11
Select the vendor that needs to be issued the 1099 form. Remember the vendor who paid you $600 or more in the previous year needs to be issued the 1099 form.
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Step 12
Enter all the necessary information related to the Vendor who you are going to issue the 1099 form.
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Step 13
Click on the ‘Save’ button.
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Step 14
Tap ‘Next’ to continue the process.
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Step 15
Review all the entered information.
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Step 16
Once you check all the provided information is correctly entered, file the 1099 form.
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Step 17
You can choose between the Automated E-File and Delivery option.
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Step 18
This will help you in printing, emailing and sending the 1099 form to the vendor.
Also Read: QuickBooks Error H202
Important Points to Remember While Printing 1099s Form in QuickBooks Online
The following are the points that you need to keep in mind while printing the 1099s form:
- Vendors are required to provide you with Form W- 9. This form contains the ID of the vendor that needs to fill out while issuing 1099.
- Make sure to enter the vendor’s information details as soon as you get it. As it will help in issuing 1099 easily and fast.
- Ensure to enter the vendor’s information correctly in your books.
- If some information is missing, make sure to let the vendor know and provide you with the missing details soon.
In Conclusion:
Hopefully, the above-given information is useful for you to get rid of this problem. But if you are still facing any issues with your software and need professional assistance, regarding accounting, bookkeeping & accounting software-related issues then feel free to get in touch with Certified Experts at +1-860-325-4922. The USA-based ProAdvisors will provide all sorts of assistance related to the software 24/7.
