Top 5 - Year End 1099's

Hello and welcome to another Top 5! This time around, we will be focusing on Year End 1099 questions again and covering some of the most asked questions; such as how to submit a 1099 for a contractor you missed the first time, amending 1099’s, how to email your 1099’s to your contractors and more. So make sure to grab your favorite drink and keep reading if you’re interested in hearing more.

Let’s dive into it!

1. How do I amend a 1099?

QuickBooks Online only lets you file your 1099 once. For updates or corrections, you can do it in a printed copy and manually mail it to the IRS. You can file the amended formr by following the steps below:

1. Order 1099-NEC IRS forms online at IRS Online Ordering for Information Returns and Employer Returns.
2. Fill out the 1099-NEC form and make sure to enter the correct Social Security Number.
3. Tick the Corrected box.
4. Once done, mail the form to the IRS.

I'm adding these articles for additional guide:

• How to correct or change 1099s in QuickBooks
• Create and file 1099s using QuickBooks Online.

2. When are 1099’s going to be emailed to my contractors?
I’ll provide details about when and how your contractors will receive their 1099s after being filed in QuickBooks Online (QBO).

The distribution of 1099s by QuickBooks to your contractors usually takes place after January 31st as it is the deadline set by the IRS for sending out forms to contractors. This happens as QuickBooks may require some time to process the information to guarantee accuracy before dispatching them.

On the other hand, QuickBooks follows a process where we’ll need to invite our contractors to make an account and view their 1099s for electronically delivering 1099 forms to them. Contractors can access and download their 1099 forms online using a secure feature.

I can guide you in inviting your contractors to access their 1099 forms through QuickBooks. We can navigate to the section for your contractors, and send them an email inviting them to either sign in to their existing QuickBooks account or create a free QuickBooks Self-Employed account.

 Here’s how you can send them an email:

1. Go to the Expenses menu and select the Contractors tab.
2. Tap the vendor to whom you want to send an invitation.
3. On your vendor’s profile, click the Send email hyperlink.

Once they’ve got their email, they can start creating their account and log in by following the steps below:

1. Sign in to QuickBooks Self-Employed.
2. Go to the Clients menu.
3. Select the Forms tab.

If you are looking for some helpful tips and facts about managing Form 1099 in your program, I have some information that might be useful for you: Get answers to your 1099 questions. Take care!

3. How does the 1099 E-File work in QuickBooks Online? 

I’m glad you asked!

I can help clarify how QuickBooks Online handles 1099 forms.

When using the E-file feature, the online program will automatically submit the mentioned forms for you. You can get copies of your 1099's if you've filed them through our 1099 E-file service.

Here's how:

1. Login to your 1099 E-file Service account.
2. Under Step 2, click Download and print copies for your records.
3. Follow the onscreen instructions until you reach the Download You 1099 Forms screen.
4. Select either Print For Contractors or Print For Your Records.

Also, the option to e-file your state 1099s is unavailable at this time. You may want to contact the state agencies to see if they offer electronic filing.

Let me share these resources so you can get a breakdown of the copies that QuickBooks Online submits and the ones you'll have to keep. From there, you'll learn which payroll service supports electronic filing.

Here are some additional resources to help you out:

• Create and file 1099s using QuickBooks Online
• File your state 1099 forms
• E-file 1099s

4. How do I file a 1099 to a foreign contractor?
Great question!

As long as the foreign contractor is not a U.S. person and the services are wholly performed outside the U.S., then no Form 1099 is required and no withholding is required.

Instead, you should get a form W-8BEN signed by the foreign contractor.  By signing Form W-8BEN, the foreign contractor is certifying that he or she is not a U.S. person, therefore it is not filed with the I.R.S. Instead, it is kept on file with the U.S. payor in case the U.S. payor is audited. In case of being audited, then the Form W-8BEN supports why no Form 1099 was issued and why no tax was withheld.

In the meantime, the best way is to get in touch with the IRS to make sure that you will be filing the correct form at year-end.

You may refer to this article about the 1099 form and things to know when preparing your Form 1099:  

• Prepare and file 1099s using QuickBooks Online.

5. Will QuickBooks Payments issue 1099K’s for ACH Payments >$600?
No need to worry, I’m here to help!

It's important to note that QuickBooks Payments will not issue a 1099-K form for payments of $600 or more received via ACH, as the 1099-K form encompasses the annual gross amount of all reportable payment transactions made through a payment card or third-party payment network. You can refer to this article:  IRS instructions for Form 1099-K.

 Additionally, ACH payments are associated with the 1099-NEC.

That’s all we have today! I hope you found this information helpful and that you feel even more confident when it comes to managing your 1099s. As always, If you have any other questions, please let us know here in the community and we’re happy to help.

See you next time for some more popular topics!