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Vendors/contractors are required by the IRS to report income REGARDLESS of whether or not a 1099 has been issued. While it is considered a best practice to issue 1099s, it is the vendors responsibility to report any income they received from your business. Here is where you decide if you wish to print and mail the 1099s or allow Intuit to do them for you.

This is for sending them your W-9 forms. It’s actually pretty slick – by creating the free account, it stores your company info for all of your clients who also use QBO. They’ll have your W-9 info automatically instead of you having to manually send the W-9 forms to every single one of them. You don’t have to use the QBO Self-employed file for your own books unless you want to. If they wish, your Vendors can turn this free QBSE portal into a paid subscription for their own business’s financial tracking. QBO will send the 1099s in electronic form to be reviewed by the client BEFORE printing.


How much time have you spent chasing down subcontractors for their addresses and tax ID? Of course, as with anything, there are exceptions. One thing most business owners don’t know is that if you pay a contractor with a debit card, credit card, or Paypal the 1099 is issued by the merchant processor. That is why we recommend paying all vendors by debit or credit card whenever possible. Review each service-based vendor that you paid throughout the prior year. You need to make sure you have a completed Form W-9 from the vendor on file and the track payments for the 1099 box are checked below their tax identification number.

Repeat this step if you have other types of 1099 payments that fall outside of Box 7. After you file your 1099s to the IRS with the steps above, we’ll notify you of your filing status through email. You can also check your filing status anytime in QuickBooks Online. Select E-File for me to e-file your 1099s. Or select I’ll file myself to print and mail the forms yourself. The 1099 E-file service is only for federal 1099-MISC and 1099-NEC filings.

Any vendors that are missing a W9 (or FEIN/SSN and addresses) will need to be followed up with by the client. If the client would like to have QBO contact vendors it will be an additional charge for W9 info collection. This isn’t about receiving your 1099s from your clients, which you will anyway.

They also dictate the payment for services and don’t require expenses to be reimbursed. There is a thread on this topic at r/tax. I switched from Intuit’s 1099 e-file service to tax1099.com this year.

Create and file 1099s with QuickBooks Online

So I’ve had to reassure them its in the mail, then save a copy from QBO, remove the first 6 digits of their SSN, password protect it, and a email it to them myself. There is al apparently no way to dowload all the filed 1099s at once for my client records. I have a few more sets to prepare, and will be using a different service for them. This was way too cumbersome, expense and confusing.


You will receive an email from the IRS when your forms have been accepted. For all other states, you’ll need to mail in your printouts, or go to your state’s Department of Revenue website and submit your 1099s there. Use the Workers Center for paying your Employees and your Subcontractors. By using Workers as a starting point, you have a one-stop shop for running Payroll and managing contract labor.

This way, you can focus on the activities that power your mission. To run a report to get the vendor’s full contact details, go back to the report list and select the Vendor Contact List report under the Expenses and Vendors section. We have a fast and simple way to pay contractors and create 1099s using QuickBooks Contractor Payments. All W9s are filed in a secure filing system managed by QBO. Track1099 offers seamless, online integration with QuickBooks Online Plus and Pro. We are an approved partner of Intuit’s and have passed their security reviews.

Don’t wait until after they’ve qualified. And since you don’t know how much you’ll spend with them, you may as well cover all the bases. You’ve got your company’s best interest in mind. You can rest assured that we will work closely with you to create actionable business plans and accurate financial reporting. We offer our toolkit of financial intelligence that will be your greatest asset for business growth. The next step is to choose the appropriate expense account from your Chart of Accounts.

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The workflow at adding new users in xero1099.com is a bit different, but I managed to get the job done. One advantage of tax1099.com is support for multiple payers with a single account. You will need to work directly with the IRS to make a manual amendment to your 1099 forms. Use these IRS instructions to do so.

Any changes outside of https://bookkeeping-reviews.com/ error will be an additional charge. When you’re ready, click Finish preparing 1099s. You can e-file your 1099-MISC Forms right in QBO, send copies of 1099s to subcontractors in the mail, and submit forms to the IRS. A dropdown appears from the box you select, and you can map the accounts where you have posted the payments. For example, you may choose Repairs and Maintenance or Accounting. You can pick multiple accounts.

Be sure to check off ALL relevant expense accounts in Box 7. This filters the Wizard, and you don’t want to leave anyone out. Common contractor accounts include Advertising & Marketing, Legal and Professional Fees, Repairs and Maintenance, and Contract Labor. It’s a good idea to have every independent contractor fill out a W-9 form as soon as you hire them.

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Under Rows/Columns, check the box next to Track 1099 and company name, then reorder the columns and click the Run Report green button. QBO will retain records of the client’s 1099 in their secure filing system for future reference if needed. QBO will not send any state 1096s unless specifically instructed to do so by the client. Clients must complete and return the Proposals by no later than October 31st Failure to do so will result in a double charge of normal 1099 fees. Fill in the form with your contact info, and begin uploading from there. Open up the PDFs you generated in QBO, and copy/paste the info into this spreadsheet.

The 1099 wizard doesn’t file with your State. You may need to take additional steps. You can submit paper forms with a checkmark in the Corrected box. The is also an option to print your own forms and send them manually. If they are, click the Back button and double-check your Box 7 accounts and Vendor transaction list.


The Details tab has their contact information, and you can connect their bank account to pay them directly through this interface. QBO sends the Vendor an online W-9 form to fill out electronically. Accepting the invitation creates their W-9, which flows into your QBO account. It is wise to run this report quarterly to ensure you enter all of the information correctly and promptly. All contractors who receive $600 or more per year from your organization must receive a 1099 unless they are an incorporated business. All lawyers must receive a 1099 regardless of their business structure.

You’ll also be able to review each contractor’s 1099.If prompted, choose the delivery option for your contractor’s copies. If you don’t see this option, you’ve already opted-in to provide your contractors online access to their 1099s when you added them to QuickBooks. If an email address is incorrect, you’ll need to update the contractor’s email address in QuickBooks, and then go back through the 1099 e-file flow. I chose the e-file option,and it appears they emailed and will physically mail copies to the recipients. To access the emailed copy, recipients have to create an Intuit account, whiich many of my vendors do not want to do.

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Hit ‘Next’ when you are finished. The steps on the screens that follow will allow you to review the information to make sure everything is included. You can save and close the 1099 Wizard at any time to make any changes needed in the Vendor or Chart of Account area. Follow the steps below to create and file your 1099s. When you file 1099s with us, we may email or mail a printed copy, to your contractors.

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Click on the box at the top of the screen that says ‘Prepare 1099s’. Go to the Vendors screen and choose Prepare 1099s. Thanks, I will have to go this route too. I already have a tax1099 account I think lol. I am not sure of any IRS provisions for NOT mailing copies. Company details to make sure that everything is correct.

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