In this Blog we talk about E-File 1099 QuickBooks Desktop is a robust accounting tool that is designed to simplify financial tasks such as accounting, bookkeeping, invoicing, and tax regulatory processes. It offers great time-saving features and functions for inventory management, invoicing, reporting, analytics, and tax compliance. It allows you to manage your time and productivity efficiently and effortlessly. It ensures efficiency and accuracy in your business’s financial record keeping.
You need to file 1099 tax forms when you pay your employees using checks, cash, or direct deposit on QuickBooks desktop. QuickBooks Desktop allows you to prepare and E-File 1099 forms using saved records in your accounts. This saves you from the hassle of filling it out online and sending it to the Internal Revenue Service.
What is the 1099 Form in QuickBooks?
1099s forms are for non-employees. They are tax forms that you require so that you can file with the IRS if you pay your employees in check, cash, or direct deposit. The 1099 form plays an important role in showing your business’ financial activities. There are two sub-types of 1099s forms they include;
- 1099-NEC
- 1099-MISC
QuickBooks Desktop simplifies the process of creating and filing your 1099 file. It allows you to make adjustments and edit recipients and transaction types so that they can match those on your 1099.
Importance of filing 1099s in QuickBooks Desktop
- It is essential in the recruitment process for contractors.
- It plays a crucial part if the income tax gets withheld.
- You need to file a 1099 for paying contractors in cash or direct deposit.
How to create a 1099 Form in QuickBooks Desktop
You can either create a 1099 Form in QuickBooks Desktop, manually file it, and send it to the non-employee, directly e-file it in QuickBooks Desktop, or print it. You can create a 1099 in QuickBooks Desktop by following the steps below;
- Start your QuickBooks Desktop application and then go to ‘Vendors.’
- Select the ‘1099 Form’ and click on ‘Print/E-file 1099 Forms’
- Now click on ‘Get started’ and then choose ‘1099-NEC or 1099–MISC’ depending on the type of your contactor
- Then select the vendors that need the 1099 Form and then click on ‘Continue.’
- Confirm that the vendor information is accurate. You can also update any section you want by double-clicking on it and making changes in the incorrect fields.
- Now select ‘Continue’ after confirming.
- Tap on the ‘Apply payments to this 1099’ box section.
- Navigate to the dropdown menu and pick the vendor accounts you want to connect to the specific payment. If the box is Gray, then it means that the account is already connected to another 1099 form.
- You can get an error message that says your setting is not compatible with the IRS threshold. In this case, tap on ‘Show IRS 1099-MISC’ and file the threshold.
- Now click on ‘Reset to IRS threshold.’
- Select ‘View excluded payments’ or View included payments’ to view the detailed report of the payments that are included or excluded in Form 1099.
- Finish off by reviewing the vendors and the transactions that are in the report and then click on ‘Continue.’
- This will give you two options: e-file or print 1099s in QuickBooks Desktop. Select the option that best suits what you want.
How to E-file 1099 QuickBooks Desktop
QuickBooks Desktop enables you to electronically file 1099 forms using an integration known as Tax1099. You need to import your data into Tax1099 after creating the 1099 form in QuickBooks Desktop. You can import your data into Tax1099 using the following steps;
- Start QuickBooks Desktop and select ‘Go to 1099 E-file service’
- Then Log in or Sign up to the Tax1099 account on the Tax1099 landing page
- Then import your prepared data into QuickBooks Desktop into Tax1099, using the on-screen instructions after logging in
- The Tax1099 dashboard will show a list of boxes, amounts, and vendors after your data is successfully imported
After importing your data into Tax1099, you can electronically file the 1099 form in QuickBooks Desktop using the following procedure;
- Tap on the ‘Edit’ button or click on the ‘Vendor name’ to make any adjustments to the information
- Key in the details under suitable state boxes to electronically file 1099s
- Check on the boxes that are next to the Date column. Do this for all the vendors you want to electronically file for and tap on ‘Next.’
- Select how you want to send copies of the receipt from the three options available. These options are Email recipient, downloading the PDF and sending it manually, and USPS mail.
- If you decide to file 1099s with your state, then select them here and tap on ‘Next.’
- After filling in all the information that is required and selecting all the needed options on the ‘Select Forms’ screen, you will be redirected to the Payments page.
- Next, enter your payment details and click on ‘Pay & Submit’ to electronically file.
These are standard steps for filing both 1099-MISC and 1099-NEC in QuickBooks Desktop.
How to check the Filing Status for Form 1099s
After filing Form 1099s for all the vendors you wanted, you can check the filing status using the steps below;
- First, Log in to your Tax1099 account from your QuickBooks Desktop application.
- Then, find the + Sign on the upper right corner of the page
- Tap on the + Sign and click on the ‘Check on Status’ option
- Key in your 9-digit reference number and then tap on the ‘Check status.’
Conclusion
QuickBooks offers you a great way to file Form 1099 with so much ease. It also sends you information about changes that are made by the federal government regarding Form 1099s from time to time. Following the simple step-by-step guide above, you can create and E-file 1099s in QuickBooks Desktop effortlessly.
The process of creating and filing a 1099 form can be uncomplicated and hassle-free when you carry it out accurately. Using QuickBooks Desktop to file 1099 forms enables you to save time and effort in filling the form. It uses data that is already saved in your account to file the 1099 Form electronically.
