1099 Time

This is a great topic for new users that may not know that they have the ability to track and print 1099's and 1096's through QuickBooks.  It does take a little set up of your preferences, but you will find this an easy tool to use for printing your 1099's.

• Go to edit
• preferences
• select tax 1099
• Go to Company preferences tab. 

Here you will see where you can tag the account for your business.  Most businesses will use the box #7, non employee compensation.  Here you will select your account that your 1099 vendor is expensed to.  For my contractors who hire subs, I used subcontractor (my Cost of Goods Sold) acct.  Under the law, if a subcontractor makes more than $600/yr., this money is taxed and you send them a 1099.  Please go to www.irs.gov for more details on the requirements for 1099s. 

Now you need to make sure that any subcontractor that qualifies is set up properly in their vendor card.  To do this go to Vendors, edit your vendor, and select additional information tab, then check off vendor is eligible for a 1099.  Here is where you will add that vendor's social security number, etc.  Once you have the vendor set up, you need to be sure that the monies paid to them is keyed to the account that you have set up for 1099 purposes.

Now, you can go to Vendors, print 1099s/1096.  Here is where you run the report to be sure that you have the proper vendors selected and the correct amounts imputted.

To print 1099's you will need to purchase the blanks from Intuit or get the free ones mailed from www.irs.gov.  You cannot just print them on plain paper, they have to be printed on the form that the government can process.  This is the same for W-2's. 

That is the easy steps for printing your own 1099s and 1096's.

Lynda

Check out my website www.artesanibookkeeping.com.