Yes it is 1099 season! If you are a small business and don’t have bookkeeping support, what is the quickest way to get your 1099s out to the correct vendors?
Businesses are required to send a 1099 to:
- Service providers that you paid $600 or more
- Your landlord for the rent you paid
- All attornies even if they are incorporated
Who don’t you send a 1099 to?
- Suppliers of products like utilities or office supplies
The two easiest ways to file are:
1. Hand fill out free forms from the government
OR buy the forms at OfficeMax.
You can get free forms from the government and
if you have only a couple 1099s to file, it is easiest to just fill them out by hand. Click here to access the free forms.
You need to order the 1099-MISC and a 1096. Here’s what a form would look like if you have two returns to complete.
2. Use the QuickBooks 1099 Wizard to print or E-File
You will want to use the QB 1099 Wizard and follow the instructions to determine who should get a 1099. Here is where you will find the Wizard:
QB Desktop - under the vendors tab on desktop.
QB Online – in the vendors area there is a button near the top right.
We suggest using the E-file option because:
- Printing the forms is time consuming. Getting the layout just right always takes more time than you think it will.
- You won’t have to order forms which are expensive.
- With E-file you can email the 1099 to your vendors so delivery is faster.
Make sure you captured all your 1099 vendors:
- Run a report - Expenses by Vendor for the year - cash basis
- Export to excel
- Sort by $ amount
- Delete all under $600
- Delete every vendor that is not an individual, accounting firm, landlord or attorney (if unsure ask your accountant)
- Go to each Vendor on your final list. Make sure you have:
- Checked needs 1099
- Email address
- Tax ID Numbers for all your 1099 vendors
Start the 1099 Wizard
The wizard will let you know who is set up for a 1099.
- Compare your list above to the Vendors on your list.
- Choose the correct accounts for 1099s
- Possible 1099 accounts: Professional Services, Subcontractors
- Not 1099 accounts: Office supplies, travel
- Finish the process using the Wizard
If you have any questions about getting this necessary task done, contact us. We are here to help you out.