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.”
After you select this screen, you will be taken to two tabs.
There is a tab to enter your 1099 subcontractors.
When you click the tab, the following screen appears:
Meanwhile, your subcontractor receives the following email to complete:
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:
Select the correct section. For this sample I selected “Business”:
On the subcontractor’s side it looks like this:
On your company’s side it looks like this:
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:
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.
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.
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.