Processing 1099 forms is required by the IRS in specific circumstances and today’s post will give you the steps on how to set-up your QuickBooks file in order to process them efficiently. To see information on who is subject to receiving 1099 forms in January and how to properly fill in the forms, see my prior posts listed below.
To set up your file for processing, you need to do two things
- Mark the vendors as subject
- Choose subject expense accounts and map to the correct box numbers
To set up your vendor, do the following:
- Find a vendor subject to reporting
- Double click on name to open up file
- Click the Additional Info tab
- Enter the Tax ID (in proper format: Social Security is XXX-XX-XXXX, EIN is XX-XXXXXXX)
- Click the Vendor is Eligible for 1099 box
To choose the accounts subject to reporting, do the following:
- Go to Edit>Preferences>Tax:1099 and choose the Company Preferences Tab
- Click the Map Accounts option.
- A box opens up showing the box numbers with a drop down. If only one account needs to be selected, choose that account and it will appear
- For box 7, you’ll need to choose multiple accounts. Click the drop down, choose multiple accounts and click next to each expense account subject to reporting
If you’d like to see prior posts with more detailed information, see the following links:
https://affordablebookkeepingandpayroll.com/2013/01/important-1099-information-part-1/
https://affordablebookkeepingandpayroll.com/2013/01/important-1099-information-part-2/
https://affordablebookkeepingandpayroll.com/2013/01/important-1099-information-part-3/
