QuickBooks Desktop users have been encountering difficulties in creating and filing 1099 with QB Desktop. This is a great feature of QuickBooks which lets users file taxes using QuickBooks. Pertinently, 1099 are necessarily to be file during paying in cash and direct deposits. There are two types of 1099 forms - 1099-NEC and 1099-MISC. This discussion shall provide a thorough after completing the filing process, the same can be forwarded via mail to contractors. To know about how to create and file 1099s with QuickBooks desktop, read this article till the end.
Importance of filing 1099s in QuickBooks
- When paying contractors in the form of cash, direct deposit, and checks, filing of 1099s is crucial.
- The 1099 form must also be filed when recruiting suppliers or independent contractors.
- Filing 1099s is crucial if the federal income tax has been withheld under the withholding regulations.
Procedure to create and file 1099s with QuickBooks Desktop
Perform the following steps to accomplish the filing process of 1099 form in QB.
Step 1: Entering report contents and time
- To begin with, the person filing the form should know why he is filing Form 1099. Whether “employer paying contractors or vendors” or whether “already deducted federal income tax”.
- Additionally, one should have a prior knowledge of the “filing due date of the 1099 form”, which is January 31. Pertinently, the tax form must be submitted electronically by January 28.
Step 2: Set the 1099 account
- It is feasible to “classify payments made to contractors as nonemployee compensation”.
- Also, classify contractors according to the payment type if they have chosen multiple cash payment methods. Notably, submission of both 1099s kinds is a must for such consumers.
Step 3: Updating QuickBooks Desktop
- Select “Update Now” and also mark the checkbox besides “Reset Update”.
- Tap on “Get updates” button to begin the update.