<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1577708692552779&amp;ev=PageView&amp;noscript=1">

QuickBooks Tips Blog

How to Process and File 1099's with QuickBooks

Posted by Alex Viau on Jan 31, 2014 7:00:00 AM

Processing 1099's in QuickBooks can be a bit of a pain especially if you aren't aware of what
you're looking for in QuickBooks. The business liability to the federal government, what forms to print, where to send the subsequent forms, and how to use QuickBooks as an all-encompassing tool to accomplish it. Don't worry though, sit back, relax, and understand that you can more than likely process all of your 1099 forms in under 45 minutes by following the steps below to ensure your business is meeting all of the federal requirements.


  • How To Find Potential 1099's - If you haven't been diligent over the year and kept up with potential 1099's I always make a quick custom report to review all vendors that have been paid over the year. You can create this report by going to...

- Vendor Center > Quick Report (Top Right)

- Once the report is pulled click Customize Report (Top Left)

- Click the Filters tab. In the filters tab specify the date range for the fiscal year of the 1099's and remove the Name filter to show all vendors then click Ok.

Look for any vendor's that have personal names whom you've paid over $600 for the year.

  • How To Input the 1099 Information - Once you've identified potential 1099's the next step will be to collect the information from the vendor. All you need to do is print a W9 form from the IRS and have them fill it out. Once the form has been filled out the 1099 information is inputted in QuickBooks by going to...

- Vendor Center, rick clicking the vendor and clicking Edit Vendor

- Input the address information in the Billed From box on the left

- Click the Tax Settings tab on the left, click the radio button Vendor eligible for 1099 and input the social security or tax ID number into the Vendor Tax ID box

  • Work Before Printing and Filing 1099's - Before you file your 1099's in QuickBooks ensure that you've...

- Picked up the 1099-MISC packet from an office supply store. This packet should have a 1096 form for each company you own, forms A-B-C, and mailing envelopes for the 1099-MISC forms.

- The forms sent to the IRS will need a full 8 1/2" x 11" page envelope as they cannot be bent, which I will also recommend your certify via the USPS when mailed

- Does your printer have ink?

- In QuickBooks double check that your company address information is correct and current by going to Company > My Company and editing where appropriate

  • How To Print 1099's - Once everything has 
    been prepared it's time to print your 1099's in QuickBooks!

- Start by going to File > Print Forms > 1099s/1096...

- Click Get Started

1. Select your 1099 vendors, this window shows all of the 1099 vendors you've flagged, click Continue

2. Verify you 1099 vendors' information, here you can double check to ensure each Tax ID and address has been entered

3. Map vendor payment accounts, I usually review these accounts and select the obvious 1099 accounts such as professional fees and sub-contracting to Box 7:Nonemployee Compensation

4. Review payments for exclusions, I tend to skip this page as Step 5 has an easier way to review

5. Confirm your 1099 entries, here you can drill into all of the payments that make up the 1099 total amount that your company report. Simply double click the amounts and a report will show with all of the payments that have been included and excluded for that particular vendor

6. Choose a filing method, click Print 1099s, ensure the dates are correct, and click Ok

- Ensure all the vendors are selected for printing the 1099-MISC and 1096 forms, click Print 1099 and start by printing one blank test sheet for the 1099 and 1096 forms. The test sheet can then be held up to the light with the forms to see if the boxes match. If they don't match you can click print again then click the Align button. Move the alignment over the amount needed to print in the correct boxes.

- Once the test pages are aligned I begin by printing the 1099's do it in batches. I first print all of my Copy A's, then I do my Copy B's, and lastly my Copy C's thus requiring 3 separate print sends.

- Lastly, click print 1096 and insert the final form into the printer to be printed!

  • What Forms to Send and File - After your forms have been printed via QuickBooks it's time to send them away and file the appropriate ones in a box for 10 years.

- Copy B is mailed to the recipient. The 1099-MISC package purchased at the office supply store should have contained envelopes to mail these. Ensure these are mailed no later than January 31st.

- Copy C should be filed for company records.

- Copy A and Form 1096 need to be mailed to the federal government to the specified address on the 1096 form by the last day in February. I also recommend NOT sending the form until the end of February as a 1099 form might be incorrect causing you to have to re-print the 1096. Please don't forget to take off the perforated edge on the right hand side and to sign the 1096 form. I would also make a copy of the signed 1096 form for your records. These forms as stated before need to be in a full 8 1/2" x 11" which you should certify via the USPS.

  • What To Keep In Mind During the Fiscal Year

- Always talk to your CPA about potential 1099's during your tax review process

- Require W9's from all company's throughout the year to ensure you don't miss one vendor, even if the vendor has a name that sounds like a company it could still be a Sole Proprietorship and require a 1099 (I always try to think of which vendors are paid that are individuals)

- To ensure you receive the 1099 from a vendor don't cut a check until a 1099 has been received

- When entering a vendor in QuickBooks that might be a potential 1099 whom you haven't received a W9 from, go to the Vendor Center, right click the vendor to edit, click the tax radio button in the tax settings tab, then save. This now flags the vendor in QuickBooks that a 1099 might be needed even though you haven't received the W9 information yet.

I know this was a lot of information for some but once you've been broken it up into the individual parts of the process it really isn't that bad and honestly doesn't take too long. My biggest take away would be to just stay on top of this throughout the year by requiring W9's from the vendors that you do business with. Have any horrific 1099 stories with QuickBooks? I'd like to hear them!

Request a phone meeting

Topics: QuickBooks 1099, QuickBooks 1096, QuickBooks W9, Printing 1099s