Written by Lyn PetersonWednesday, 28 December 2011 15:24
The IRS has issued different reporting requirements for tax year 2011 in regards to 1099-MISC forms. These requirements exclude certain payment types to vendors and subcontractors.
With QuickBooks Enterprise Solutions v.12, QuickBooks Premier/Pro 2012, release 5 a new 1099 Wizard is in place to process 1099-MISC forms correctly from your company file.
For prior versions of QuickBooks 2009-2011, the program must be on the latest release, a small purchase is required for the wizard.
To create and submit 1099-MISC forms for tax year 2011 it is imperative to have the latest release of the QuickBooks software you are using. The following was created using QuickBooks Enterprise Solutions v.12, but the Wizard will work the same on all versions.
- When setting up 1099-MISC forms within QuickBooks, go to Edit > Preferences > Tax:1099 > Company Preferences
- Select Yes to the question regarding the filing of 1099-MISC forms
Note: The other two questions here, I will go over separately.
- The question, “If you want to map your accounts to boxes on Form 1099-MISC, click here” you have the opportunity to only map the different areas that could be associated with a 1099 vendor/subcontractor. Usually this is done when selecting that you will be issuing 1099-MISC forms. This will assure that during the year, when paying a vendor/subcontractor the amounts will automatically be associated with a specific 1099-MISC category at the end of the year. It is not a requirement to select this at the beginning of the year, (or the creation of the company file), but can save time at the end of the year.
- The second question “If you’re ready to prepare your 1099s, including mapping accounts, click here” will bring up the wizard for the 1099s. The other method to bring up the wizard is Vendors > Print/E-file 1099s…
- At this point, I am going to take a step back to create the 1099 vendor. When creating a vendor, that you know you will be a 1099 vendor, select the Additional Info tab on the Edit Vendor window. In this window, on the bottom left, enter the Tax ID and put a check mark in the box for “Vendor eligible for 1099”. This is another time saver at the end of the year.
Continuing on with the 1099 Wizard:
- The next screens are going to walk through the each step of the wizard.
Step 1: Select your 1099 vendors
- This is where you can check to make sure that all vendors/subcontractors are selected for the 1099s. If someone is checked that should not be, you can remove the check mark. If someone is not checked that should be, you can enter a check mark. Also you can edit the accounts that are used.
Step 2: Verify vendor information
- This step allows you to verify the setup for the vendor. The information in this window is available for edit in the case of a changed address or no address, incorrect or no Tax ID.
Step 3: Map your accounts
- This step lists the accounts that are designated for 1099 expenses. There is also a check box if all of the payments are for Box 7 of the 1099 form. At the bottom of the listings, a link allows for the showing of the thresholds.
Step 4: Review vendor payments
- The payments made by credit card, debit card, gift cards or PayPal will be excluded by changing the check number to something to designate the payment type, use one of the “Appropriate Notations”.
- QuickBooks recognizes, and will automatically exclude from Form 1099-MISC, any check payment containing one of the following notations in the check number field. The limit for this field is eight (8) characters:
- DBT card
- Debit cd
Step 5: Confirm entries
- While it is not possible to change the figures in this window, by double-clicking on the figure a 1099-Detail Report will generate to show where the figures are coming from.
- From the report, if more information is needed, double-click the transaction in question, and the transaction will open.
Step 6: Choose Filing
In this window, select the method of filing the 1099-MISC forms either by Printing and sending them to the vendors, or E-file, (contact Intuit for cost of E-file).
- Save & Close
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