How To File Your 1099s on Quickbooks Onlines
Updated: Jan 16
Businesses are required to send independent contractors a 1099 if they were paid more than $600 during the calendar year. The form is due prior to Jan 31, 2020. Keep in mind, however, that the IRS made a few changes to the 1099 form last year. Moving forward, anyone not on your payroll who is paid on a contract basis to complete a project or assignment i.e. independent contractors, gig workers, or self-employed individuals must receive a 1099-NEC rather than the 1099-MISC form required in years past.
What you need to file Form 1099 - NEC
If you are the payer, request a Form W-9. This will include their:
Legal name or business name if applicable
Business entity (sole proprietor, partnership, corporation)
Taxpayer identification number (SSN, ITIN, or EIN)
Once you have the contractor's information from Form w9, you can complete Form 1099-NEC. The IRS also requires you to send in Form 1096 which is a summation of the 1099s that you sent to contractors along with a copy for the IRS. Depending on how many contractors you paid last year, this could be a very time consuming process. Quickbooks Online has an automated option for $14.99 per form filed. Here is a video walking you through how to process your 1099s on Quickbooks Online.