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

Complete Business Group helps small businesses purchase the RIGHT QuickBooks product at the lowest price and offers a team of experts to provide high level customer service so that they use QuickBooks® the way it was intended. With the many offerings from online to desktop we understand the benefits and limitations of each option to help you find the right solution. We have a team of certified ProAdvisors located all over the US ready to support you remotely or locally.

Carrie Kahn, CPA, the founder and CEO of Complete Business Group, has been helping small businesses purchase the RIGHT QuickBooks product at the best price and offers a team of experts to provide high level customer service so that they use QuickBooks®the way it was intended.

Carrie has been supporting and selling QuickBooks since Dos V1. She has been an Advanced Certified ProAdvisor since 2002. She joined the Intuit Reseller Program in 2008. In 2015 she launched the Complete Business Partner Program
mentoring ProAdvisors in selecting the best QuickBooks products for their clients at best pricing for their customers. She is very involved in the QuickBooks community providing extensive resources for ABBO Facebook group , Scaling New Heights, School of Bookkeeping, CPA Academy, Intuit’s Firm of the Future, and CBG Blog. Carrie is a lead QuickBooks Author for the Accountex blog. She was named Insightful Accountant’s Top 100 ProAdvisor every year since 2014 and was Insightful Accountant’s 2017 Social Media Resources ProAdvisor. She currently serves on the Intuit Reseller Program Council. CBG has been in the top 10 Intuit Premier Resellers (IRPs) since 2012 and currently is ranked #1 in the East. She is currently serving on the IRP Council. Carrie’s company, CBG was named Partner Program of the year for 2017.

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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