Top 5 Year End Questions: 1099s

Here we go with another round of Top 5 Questions, Year End Edition. This time we are helping you out with your 1099s because, well, we all could use help from our (QuickBooks) friends. 

1. Can I pay a 1099 worker with Direct Deposit?

The answer is yes! If you’re tired of writing a check for your vendor, this is the post for you. Let’s take this step by step.

If you haven’t already, the first thing you’ll want to do is set up your company payroll for direct deposit. It’s important to know it can take 1–3 business days to set up a checking account for direct deposit. Once it's set up, you'll use this account to pay your employees (and contractors).

Then it’s time to set up your 1099 for direct deposit:

1. Select Payroll, then Contractors.
2. For a new contractor, select Add a contractor or select the existing contractor to add or edit bank info.
3. Select Bank account.
4. As prompted, enter the following:

• Account Number
• Account Type
• Routing Number
• Account holder Phone Number
• Account holder Full Name

The last thing you need to do is select Save.

For more details, take a look at this article: Pay a contractor with direct deposit.

2. Where can I find a receipt for e-filng my 1099s?

If you have already processed your 1099 through E-file, you’ll receive an email. You’ll also get another email once the IRS receives it. You can sign in to Electronic Federal Tax Payment (EFTPS) to confirm and 1099 E-File Service to access archived or previously filed 1099 forms. 

It’s always a good idea to download or print a copy of your 1099s for recordkeeping.

3. I missed a couple vendors that didn’t show up when filing my 1099. How do I file for them?

You need to follow the same steps when you first submitted the first batch of vendors. Here’s all you’ll need to do:

1. Go to the Expenses menu.
2. Select the Vendors tab.
3. On the right corner of your screen, you'll see Prepare 1099s.
4. Once you’re on the next page, click Continue your 1099s.
5. Follow the next steps for filing.

After you file your 1099s with the IRS with the steps above, we’ll notify you of your filing status through email. You can also check your filing status anytime and view previously field forms through your 1099 E-File account.

Here’s a great article to check out if you want more information: Create and file 1099s using QuickBooks Online.

4. Can I file my 1099 without the vendor’s email address?

You'll need an email on file when filing the 1099 for your contractor.  Why? The email address is used to send an invitation to them directly so they can access and view their 1099 forms online. Make sure that no important info is missing, such as vendor or company name, address, and tax ID.

5. One of my contractors doesn't show up correctly. The 1099 box is checked in their profile and he ...

If your contractor doesn't show up correctly, you may need to map the accounts used for the transactions of that contractor. Here’s how:

1. Tap on Workers at the left pane, then select Contractors.
2. Click on Print 1099s.
3. Select Continue your 1099s.
4. On the Accounts section, put a check-mark on Box 7: Nonemployee Compensation.
5. Choose the accounts used by clicking the drop-down arrow beside Multiple Accounts. (Map the accounts correctly.)
6. Click Next.
7. Review your contractors' information, then Next.
8. The vendors/contractors that meet the threshold will now show up under the Check that the payments add up page.
9. Choose either to Save and finish later or Finish preparing 1099s.

If you’ve filed your 1099s and need to make a change or correction, take some time to check this out: Correct or change 1099s in QuickBooks

Feel free to use this as a reference as you navigate 1099s and don’t forget to come to the Community with any questions you have! We’re in this together.