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Complete Guide for QuickBooks Online 1099 e-file Service

You may be very familiar with your company revenue, cost of goods sold, and profit numbers, so what about all tax-related things? and When do you need to make a comparison between 1099-NEC and 1099-MISC? In case you’re wondering where to get 1099s or simply need to become familiar with them, you’ve come to the perfect place. Remember If your business has paid more than $600 to a dealer or supplier in a given year, then you are required to file 1099 Misc form(QuickBooks Online 1099 e-file).

Using this service you can easily prepare and File the 1099 e MISC form easily and immediately within a few clicks. After your form is prepared using QuickBooks Online, Inuit’s 1099 E File service will automatically E-file 1099s to the IRS and deliver the copies to your contractors. This is an efficient feature that will help you with setting up your 1099s from the data you have in your accounting records.

What is 1099?

A 1099 tax form is explicitly planned for independently employed contractors. Internal Revenue Service (IRS) has introduced Form 1099-NEC, which is proposed to replace the non-employee compensation part of Form 1099-MISC. 1099-MISC is used for different reasons, similar to the report of gross proceeds to an attorney, Section 409A deferrals, and non-qualified conceded remuneration income.

Why Do I Need a 1099 form?

1099 is commonly referred to as non-employee wages or other purposes. However, if you have paid any part-time workers or freelancers more than $600 during the year 2020, then you will need to send them a 1099-NEC. This form allows you to report the wage information to the Internal Revenue Service (IRS) and enables your contractors to do their taxes.

Remember: You should fill out the 1099-NEC for any non-employee compensation to record payments paid more than $600.

What qualifies as non-worker compensation? Few list of payment types:

  • Commissions
  • Awards
  • Prizes
  • Fees
  • bonuses
  • hourly wages
  • many other forms of compensation for services

On the off chance, if you need to record installments of more than $600 for lease, prizes, lawyer charges, or clinical and medical services installments, you should fill out a Form 1099-MISC.

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Where would I be able to get 1099 forms?

You can go for the online form which is provided by QuickBooks, you can easily e-file your 1099s electronically. If you have a monthly subscription to payroll service, QuickBooks will auto-populate the correction forms and file them with the IRS for you. If you’re planning to mail 1099, then you need to order a hard copy. You can print them directly from QuickBooks or buy them at an office supply store.

Note: Before applying for 1099, collect the W-9 forms. It contains all contractors’ identity information, including their Tax ID numbers.

How to File 1099 Form Online?

To file the 1099 form go through the steps listed below:

  1. Submit Copy A to IRS and Copy 1 to your state tax department
  2. Send Copy B and Copy 2 to the receiver
  3. Keep Copy C in your records

Submitting 1099 through the IRS online via the Filing Information Returns Electronically (FIRE) system is the easiest and fastest route.

Filling 1099 Form Online Using Tax1099.com

Step 1: Upload 1099 data from QuickBooks to Tax1099.com

  • Open QuickBooks and go to Vendors menu, select Tax1099.com E-file and click Upload 1099 Data
  • Now enter your Tax1099.com log in information, select the export year and click login
  • A dialogue window will shows up showing the exporting process, the windows will closes itself after the upload completes.

Step 2: Review and Update the Vendors’ Information on the Tax1099

At this point do not move back to QuickBooks Desktop

  • Fill in all necessary information and click on update
  • After updating the information, you’ll be returned to the Tax1099 dashboard.
  • Select the vendors you need to upload by checking the e-file box.
  • Click on Next button
  • Tax1099 will check for any errors before uploading the data

Step 3: Select The Method For Distributing Copies to The Vendors

  • Check the box next to the date to select the vendors
  • Select the way you like to send copies to the receivers/vendors by checking the box under USPS Mail or Email Recipient.
  • Now Click on Next

Note: There’s a fee included if the USPS Mail is chosen.

Step 4: Do the Payment Confirmation

  • After clicking on Next, many pop-up messages may appear on the screen
  • When you’re finished, you will be taken to the payment box, showing you the total cost, after all the billing information has been entered.
  • Now click on Pay & Submit to e-File.

In this article, we’ve covered QuickBooks Online 1099 e-file process. We hope that this article is helpful for you. If you are facing any issues and thinking to hire certified experts dial 1.855.738.2784 for instance assistance.

You may also read:  The process to Create, Print and E-file 941 Federal Form

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