If you pay contractors, consultants or freelancers $600 or more for services performed for your business in any fiscal year, you are required to file a Form 1099-MISC with the Internal Revenue Service. You must also file a Form 1096 to indicate the amount paid to each contractor on the 1099-MISC. QuickBooks makes setting up and printing IRS Form 1099 easy to do. Collecting a W-9 form from each vendor when you initially contract for services can help simplify the data entry process in QuickBooks by providing all the essential information in a single document.
Add a 1099 Vendor
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Step 1
Open QuickBooks on your computer.
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Step 2
Click on "Vendors" from the My Shortcut toolbar to bring up the Vendor Information window, or click "Vendors" and then click "Vendor Center."
Step 3
Click the "New Vendor" drop-down menu and select "Add New Vendor" or "Add Multiple Vendors" to enter more than one 1099 contractor at a time.
Step 4
Enter the name of the vendor in the "Vendor Name" box. Choose a name that best suits how you want this vendor to be displayed in your vendor list.
Step 5
Enter the vendor's legal first and last name or company name, address and contact information in the "Address Info" tab as provided on the contractor's completed Form W-9.
Step 6
Click on the "Tax Settings" tab and enter the contractor's tax identification number or Social Security number if the vendor is a sole proprietor. Check "Vendor eligible for 1099." Verify the tax identification number on the screen against that provided on the W-9.
Step 7
Click on the "Additional Info" tab and select a vendor type from the drop-down menu.
Step 8
Complete the "Payment Settings" and "Account Settings" tabs to establish how you wish to pay the contractor and to classify the expense types.
Step 9
Click "OK" to complete your changes.
Set Up an Established Vendor As a 1099 Payee
Step 1
Open QuickBooks on your computer.
Step 2
Click on "Vendors" from the My Shortcut toolbar to bring up the Vendor Information window, or go to "Vendors" and select "Vendor Center."
Step 3
Double-click the name of the vendor on the vendor list and go to the "Tax Settings" tab.
Step 4
Enter the vendor's tax identification number or Social Security number if it is blank and check the box "Vendor eligible for 1099." Click "OK" to save your changes.
Print a 1099 Vendor
Step 1
Open QuickBooks. Launch the QuickBooks 1099 wizard from the File menu by clicking "Print Forms" and "1099s/1096."
Step 2
Check the "Create Form 1099-MISC" box for each 1099 vendor. Click "Continue."
Step 3
Review the information for each vendor displayed on the screen. Double-click the appropriate boxes to enter missing data or correct erroneous entries, then click "Continue."
Step 4
Review the accounts and payment information for each vendor in the "Map vendor payment accounts" dialog and check "Report all payments in Box 7."
Step 5
Click "View Included Payments" or "View Excluded Payments" to verify that the amounts you paid by check, credit card, debit card, gift card or PayPal are entered correctly. Click "Continue."
Step 6
Review the 1099-MISC entries for each vendor in the "Confirm your 1099 entries" screen and click "Continue."
Step 7
Click "Print 1099s." Click "Save and Close" when finished.
Tip
According to IRS regulations, you can print and file up to 249 1099-MISC forms. If you have 250 or more forms to file, you must electronically submit your forms to the IRS.