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As you may know, businesses are required to issue 1099-MISC forms for certain payments made to individuals (the most common types being for services rendered and rents paid in excess of $600 for the year).  Did you know that QuickBooks can help you track this information?  Below are the steps to follow to use QuickBooks to track information for 1099s correctly:

  • Turn on 1099 tracking - Go to Edit/ Preferences/Tax:1099 and select the Company Preferences tab.  Make sure the question "Do you file 1099-MISC forms?" is marked Yes. (Leave this screen open to map the accounts.)
  • Map the accounts - On the same screen as above, go to the Account column and select the account or accounts that correspond with each line item by using the drop down arrow on that line (if more than one account applies to a line, you can choose them by selecting Multiple Accounts then marking the appropriate accounts).  For example, for Box 7: Nonemployee Compensation, you might select the account Subcontract Labor.
  • Mark the vendors as eligible for 1099 - For each vendor that is eligible for a 1099, go to the Additional Info tab and check the box "Vendor eligible for 1099" and enter the Tax ID in the box.
     
    Once these steps have been completed, you can then generate a 1099 Summary report by going to Reports/Vendor & Payables/1099 Summary and change the dates to the appropriate range (ie. last calendar year).  This report will summarize the name, ID number and amount for all 1099-MISC recipients based on the parameters defined above.
     
    If you need help implementing these tips or have other QuickBooks needs, please contact our Certified QuickBooks ProAdvisors at 317-888-2047 today! 
     
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    Coffee Break is an e-mail newsletter from QuickBooks Caf�, a division of Shaub CPA Group.  QuickBooks is a registered trademark of Intuit, Inc.  Although our staff members are certified by QuickBooks (Certified QuickBooks ProAdvisors), QuickBooks Caf� is not affiliated with Intuit, Inc.  Information contained in this newsletter is for general purposes and may vary depending on individual circumstances.
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