QuickBooks

Preparing 1099s in QuickBooks Online Plus

Written by Carrie Kahn

This is a very busy time for those preparing 1099s and there is no time for mistakes. Preparing 1099s in QuickBooks Online requires specific setup steps in order to be successful. There are some helpful guides built into the program to make it easy to navigate. But be sure to keep in mind that this requires the Plus edition of QuickBooks Online.

Here is a guide that will help you troubleshoot should you need support.

When you log in to your QuickBooks Online account, select the tab “Workers.”

Preparing 1099s in QuickBooks Online Plus

After you select this screen, you will be taken to two tabs.

Preparing 1099s in QuickBooks Online Plus

There is a tab to enter your 1099 subcontractors.

Preparing 1099s in QuickBooks Online Plus

When you click the tab, the following screen appears:

Preparing 1099s in QuickBooks Online Plus

Preparing 1099s in QuickBooks Online Plus

Meanwhile, your subcontractor receives the following email to complete:

Preparing 1099s in QuickBooks Online Plus

When you click “Add your details now” it will take you to a new login screen to either login to your existing intuit account for QuickBooks Online or QuickBooks Self-Employed or require you to create a new one. Once you are logged in, this screen appears:

Preparing 1099s in QuickBooks Online Plus

Select the correct section. For this sample I selected “Business”:

Preparing 1099s in QuickBooks Online Plus

On the subcontractor’s side it looks like this:

Preparing 1099s in QuickBooks Online Plus

On your company’s side it looks like this:

Preparing 1099s in QuickBooks Online Plus

Preparing 1099s in QuickBooks Online Plus

Now you are ready to write a check.

After the year has ended, you will need to prepare your 1099s.

You will also need to set up the company in order to prepare 1099s:

Preparing 1099s in QuickBooks Online Plus

When you click “Prepare 1099s” you get to a screen with a wealth of resources to help you learn more about 1099 preparation, the fees to e-file through QuickBooks Online, and other options.

Preparing 1099s in QuickBooks Online Plus

When you click “Continue your 1099s” it takes you to more setup screens to complete. You will complete your company information. You will map the accounts to the 1099s.

Preparing 1099s in QuickBooks Online Plus

The next screen gives you a chance to review and edit the contractor’s information. The following screen allows you to review the checks paid to see if the setup picked up all your 1099 subcontractors. The final button will take you to the options and pricing to submit your 1099s.

The New 1099 Report

There is a brand new 1099 detail report. The report can be found by going to: Reports>All Reports>Review Expenses and Purchases>1099 Transaction Detail Report.

This report is currently formatted for all dates. The first thing you will need to do is set the report date range to “Last Calendar Year.”

Once you have set the date range you can then change the filtering to narrow down the data on the report, such as a certain 1099 Vendor, or a Certain 1099 Box.

Preparing 1099s in QuickBooks Online is easy once set up correctly. However, make sure that you understand the rules about who should receive 1099s, and the thresholds, so that you are in full compliance.

This is a great checklist to use to ease the process and make sure you do it correctly.

Let me know in the comments if you have any other tips to share.


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About the author

Carrie Kahn

Carrie Kahn, the owner of Complete Business Group, joined the Intuit Reseller Program in 2008. CBG offers Intuit based solutions for End-users, ProAdvisors and Partners. CBG is now considered one of the largest and fastest-growing Intuit Premier Resellers (IRPs) in the world. The Complete Business Partner Program is helping ProAdvisors and other partners become better at their profession, increase their income substantially, and save their customers time and money.

Carrie has been supporting and selling QuickBooks since Dos V1. She has been a certified ProAdvisor in the full line of QuickBooks products since 2002. Complete Business Group joined the Intuit Reseller Program (IRP) in 2008.

Carrie serves as a host for the Accountants, Bookkeepers, and Business Owners (ABBO) Facebook group as the QuickBooks Product Expert. She was named top 100 QuickBooks ProAdvisor of the Year every year since 2014. She has been in the top 10 Intuit Premier Resellers (IRPs) since 2012 and currently is ranked #1 in the East. She was named Social Media Resources ProAdvisor of the Year for 2017. She is currently serving on the IRP Council.

4 Comments

  • Carrie,
    Thanks for your article for QBO 1099s. When you were evaluating, and the vendor is asked to created a login account, with standard business information, does the signup, used by the vendor, require response to fields such as entity, as we will see in W9? That is, many vendors use LLC to mask a sole proprietorship or partnership. To be useful and to provide efficient information gathering, the W9 fields should collected at the time a vendor is invited to signup.
    Best,
    Bill Tucker, CPA

  • This program is very simplified by asking if they are an individual or a business. It gives the vendor a QuickBooks self employed account and even assumes that most of these vendors will have a social security number. Using this method will require manual steps to determine whether the vendor will receive a 1099 or not. I understand what you are saying about entity and in our firm we use a third party Track1099 which required the vendor to choose their own entity, and sign the form. The program then determined whether or not the Vendor receives a 1099.

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