What is 1099 NEC form in QuickBooks Desktop ?
Today, in this article, we are going you to give all the information about the QuickBooks 1099 and how to track payments in that.
So, let’s stay tuned till the end of the article.
1099s is a tax form that is supported by QuickBooks and helps employers to calculate the wages and taxes of the workers. Workers under the QuickBooks 1099 form are also known as self-employed workers or independent workers, or even freelancers.
What is the QuickBooks 1099 Form?
In layman language, Form 1099 is used to keep the details of the workers i.e. their per hour wages, time spent on work, time duration for completing that specific project.
The payer fills out the 1099 form and sends copies to the workers and the Internal Revenue Service (IRS). The purpose of this form is to calculate your annual income during that year and to track what kind of income it was. Based on the form, you will report that income on different stages on the time of paying of income tax.
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Who Needs the QuickBooks 1099 Form?
Form 1099 helps to keep the record of the income to pay income tax. Each Form 1099 has a special and unique Social security number or the taxpayer identification number, through which IRS will get information whenever you received the money and it will take action if you don’t show that income while calculating the Income Tax.
Those workers who get their work from the company based on the hourly wages needed to fill the 1099 Form. These can be Freelancers, Individual contractors, or self-employed.
Track Payments to QuickBooks 1099 Contractors?
You have probably got several maybe even hundreds or thousands of contractors set up in QuickBooks. So, to track payments to QuickBooks 1099 contractors, here are the steps, which you can follow.
1. On the Desktop screen, click on the expenses section showing on the left side of the screen.
2. Then you will see two options on the screen “Expenses” and “Vendors”.
3. Here, in the vendor’s section, you will see all the names and lists of your vendors and contractors.
4. You can select any of the vendors, for which you want to see their payment history.
5. After clicking on a vendor’s name, it will bring you to a new page. Here, select the vendor details and then you will see all the details of the vendor such as mobile number, email id, billing address, and company details.
6. Once you scroll down on that page, it will show you an attachment by the name Blank W-9. Click on that.
7. After that, a form of unique identification and certification will open.
8. With the unique identification number, IRS can easily track the payments.
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With the above-mentioned steps, you can easily check out and track the payment of the 1099 Form.
We hope, this article has helped to get all the necessary information regarding the Tracking payments of QuickBooks 1099 contractors. In case, if you have any queries7, then you can easily connect with us by sending your contact details and your message through the “Chat with us” option. Our experienced customer care team will be happy to solve your query.
Frequently Asked Questions (FAQ)
1. I am new to QB online, but have used QuickBooks Pro for years. Before I found your article, I did the same as what you have mentioned, but when I go running a 1099 report, the vendor is not there. Is there any other step?
A: Have you spent more than $600 with that vendor? If not, then QB won’t see it as needing 1099. Also, once you get into the 1099 screen, you will need to select the expense account that the vendor payments were categorized to, or, again, they won’t show up.
2. How can I provide copies of the 1099s form to my contractors?
A: Online filing of the 1099s Form cannot fulfill the IRS requirement of providing 1099s to your contractors or vendors. If you are using the Intuit 1099 E-File Service, then you can easily download, print, or email your 1099 forms to contractors.
3. How can I fill out the 1099 form online with the IRS?
A: Preparing and sending the 1099 form is very easy and its process can be done online. If you are the Payor and you owe a 1099 form to a vendor, you can then fill them through several sites such as Tax1099 which is owned by Intuit, the parent company of TurboTax and QuickBooks.
4. How can I show my income proof, as I’m self-employed?
A: With the help of copied of checks given to you or whether you were paid in cash, then you can go online & search for the sample of a self-employment ledger. This IRS will easily accept that and they will cross-check it with their records.
5. From where can I get the free 1099 forms?
A: You can easily fill out the form and can download it by visiting the below-mentioned link.