Did you happen to make a mistake and miss one of your contractors in your 1099 filing or just add a new one and need to send one to them?
No problem.
Now and again, instead of sending a 1099 out to the entire list of contractors you have during tax season, you may find that you only need to send them out to one.
With QuickBooks Online, sending 1099s can be your best friend, if everything is done correctly inputting information.
Oddly enough, there doesn't seem to be a lot of information online about how to send it to just one.
THE FIRST STEP is that you must have information and a license to QuickBooks Online. You cannot do this unless you have purchased a license.
We're going to assume that if you are looking to solve this issue, then you already have a license.
How to File for a Single Contractor in QBO
Let's just dive right into how to get this done:
- On the left side of your QuickBooks Online screen scroll over the Taxes tab and click 1099 Filings.
- Click Let’s Get Started
- Make sure all your company info is correct. Then click
- Identify the type of 1099 form you need—typically, the 1099-NEC for contractors is the one you'll want.
- Make sure to choose the accounts you paid the contractors out of. Examples would be Subcontractors, Contract Labor, etc. For a full list of accounts that you should be looking for vendors to be 1099’d be sure to look it up.
- Click Next. You then will have a screen showing you all the contractors from the accounts you chose. QuickBooks Online will show in red if there is any missing information needed to file the 1099’s. Click
when you are done updating any information missing.
- You'll go to the Review page where you will see what contractors are eligible for a 1099 filing. Anyone who was paid over $600 or not paid with a credit card.
- Click Finish preparing 1099’s.
- Next, you will get to the screen where you will choose how you want your 1099’s filed. Pick what package best suits your needs.
- After you are done entering your payment info and picking a package it will take you to the screen that has all your contractors listed.
- Click the box to the left of the contractors to choose which contractors you will be filing and uncheck any you don’t want to file.
- You can also click Review to the right of the contractors to see exactly how their 1099 will look.
- Once everything looks good click the File 1099 button. It may be a different button if you choose the Print and Mail Manually option.
- If you choose the E-File package it will give you the option to download the 1099 in PDF form for your copy or for your contractors.
What do I Categorize an Independent Contractor As?
Navigating the complexities of 1099 filings can often lead companies into troublesome waters. Are you aware that one of the most common mistakes is misclassifying employees as independent contractors?
This oversight not only invites IRS penalties but also undermines the accuracy of your financial reports.
Additionally, overlooking the necessity to verify contractor information for completeness can delay your filing process, potentially resulting in missed deadlines and further penalties.
Imagine the peace of mind in knowing every detail is meticulously reviewed and validated, ensuring compliance with IRS regulations.
In Conclusion
The 1099 filing process in QuickBooks Online is a decent way for you to go and easily file your 1099s.
It's about giving you back the time to focus on what truly matters—nurturing the relationships with your network of contractors and growing your business.
It’s this peace of mind that makes QuickBooks Online not just a tool, but a vital asset in your business arsenal.
Feel free to reach out to us if you have any QuickBooks Online questions.
