How to set up accounts for contractors that will be given 1099s.

QuickBooks Accounting – The first thing you must do is tell QuickBooks that you will be issuing 1099s. Click on Edit (from the menu bar), then Preferences. Scroll down until you find the picture that says “Tax: 1099” and click on it. On the Company Preferences tab, answer yes to the question about the issuance of 1099 forms, and then follow the rest of the instructions on this screen. 

Next, you’ll need to identify those vendors who are eligible to receive a 1099. Click on Vendors, then Vendor List. Double-click on the first vendor in the list, then the “Additional Info” tab. In the lower left hand corner, put a check mark in the box that says “vendor eligible for 1099” and enters their tax ID number they have provided. Repeat this process for any vendors that need to receive a 1099. 

Finally, to run the 1099’s and related information, click on Reports, then Vendors, then any of the 1099 reports. Verify the data, correct if necessary, and print your 1099’s all within QuickBooks. 

It’s important to review this topic with your accountant to ensure you are collecting the proper information and preparing the 1099 forms correctly for your business. For no obligation free consultation contact us today!

ABA Tax Accounting

Authorized QuickBooks Affiliate

612-282-3200 Toll Free (866) 936-0430

amare@abataxaccounting.com

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QuickBooks Accounting Services

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