MBE QuickBooks Tips
As a business owner, you are required to send 1099-MISC forms to vendors you pay $600 or more in a given year for services. These 1099s are due January 31st of each year. This means businesses need to show due diligence and obtain W-9’s from their qualified vendors before year end so they have the information needed to produce 1099s by the deadline.
To keep track of your 1099 vendors in your QuickBooks desktop version, the appropriate vendors need to be indicated in the vendor setup. If your vendors are already set up, you can go into your vendor center, edit the vendor by clicking on the pencil edit icon and click the tab ‘Tax Settings’, then click on the box ‘Vendor eligible for 1099’and enter the vendor tax id you obtain from their W-9. QuickBooks will allow you to check the box and leave the tax id blank if you don’t have the W9 information yet. This way you have flagged the vendors for reporting. You will get a pop up message asking if you want to enter the tax id now, answer no and it will allow you to go back in to add it later.
After the year is over, you can then map your 1099 accounts and run a report to be sure you have all of your Form W-9s needed to provide to your 1099-MISC service provider.
>>Edit-Preferences-Tax:1099 tab-Company Preference tab-check the yes to answer ‘Do you file 1099s?’-‘Click here’ to map your accounts to boxes on Form 1099-MISC-in the dropdown, show all accounts-select expense accounts you use to pay for services and select the appropriate 1099 box from the list. Most common is Box 7 – Non-employer Compensation and Box 1 – Rent.
Some common examples:
Box 1-Rent: rent paid for building
Box 7-Non-employer Compensation: subcontractors, repair work, attorney fees, snow plowing, lawn care, cleaning services, any outside services, etc.
>>Reports-Vendors & Payables-1099 Summary-select 1099 options: all vendors; all allowed accounts; use thresholds.
Please contact our office if you need assistance with this process or if you need instructions for QuickBooks Online 1099 vendor set up at 608-356-7733.
MBE CPAs can file your Form 1099’s for you which includes uploading copies to the IRS and the state.
o find blank copies of Form W9 and 1099 including instructions, visit www.irs.gov and find the link under Forms and Pubs on their home page. For to request a W-9 form from a vendor please see our sample letter here.