Simplify Your 1099 Filing with QuickBooks Online: A Step-by-Step Guide

Do you need to fill out your 1099s and don't know how?  Get QuickBooks Online today and follow this article. 

As a business owner, filing 1099s for contractors is an essential part of staying compliant with tax regulations. If you pay contractors via cash, check, or direct deposit, you’re required to file 1099s with the IRS—and in some cases, your state. Fortunately, QuickBooks Online makes preparing and filing 1099s seamless by leveraging the contractor information you already have in your account.

Follow this step-by-step guide to create, e-file, and manage your 1099 forms with ease.

Step 1: Create Your 1099s

When it’s time to prepare your 1099s, QuickBooks offers two options:

1. Let QuickBooks Prep for You: QuickBooks can automate most of the work, using the data you’ve already input for your contractors.
2. Prep with QuickBooks' Help: If you prefer hands-on guidance, QuickBooks provides an easy-to-follow interface to walk you through the process step by step.

During this stage, you’ll also decide how your contractors will receive their copies of the 1099s. QuickBooks can email or mail printed copies directly to them, though additional fees may apply.

Step 2: E-File Your 1099s

Once you’ve prepared and verified your 1099s, it’s time to e-file. QuickBooks streamlines this process to save you time and ensure accuracy.

Steps to E-File Your 1099s:

1. Verify Your 1099s: Double-check all contractor information to ensure accuracy before submitting.
2. E-File Your Forms: Select the e-file option and follow the on-screen instructions to submit your federal and, if applicable, state 1099 forms.
3. Contractor Copies: If prompted, choose how contractors will receive their 1099s (email or mail). Fees may apply for mailed copies. If contractors already have online access via QuickBooks, they can retrieve their forms directly.
4. Update Contractor Information (If Needed): If an email address is incorrect, update it in QuickBooks, then reprocess the 1099 e-file.
5. Complete Billing Info: If prompted, enter your billing details to finalize the e-filing process.

Important Note: The paper version of Copy A of Form 1099 is for your records only. It should not be mailed to the IRS.

Step 3: Check Your Filing Status

After e-filing, QuickBooks will notify you via email about the status of your submission. You can also check the filing status directly in QuickBooks Online at any time.

How to Check Your Filing Status:

1. Go to Taxes, then select 1099 Filings.
2. View the status under Filing Status.
3. Select View 1099 to download or print a PDF copy of your filed forms.

Save Time with QuickBooks Online Payroll

With your current QuickBooks subscription, there’s a fee for each 1099 you file. If you’re looking for unlimited 1099 e-filing, consider adding Contractor Payments to your plan, which also allows you to pay contractors directly. If you need to pay both employees and contractors, upgrading to QuickBooks Online Payroll might be a better fit. Additional fees may apply for mailing 1099s.

Why Use QuickBooks Online for 1099 Filing?

• Streamlined Process: From data preparation to e-filing, QuickBooks simplifies every step.
• Accuracy and Compliance: QuickBooks minimizes errors by pulling data directly from your account.
• Convenient Delivery: Choose between email or mail options for contractor copies.
• Real-Time Updates: Check filing status and download forms instantly.

With QuickBooks Online, preparing and filing your 1099s has never been easier. Whether you’re handling a few contractors or managing a larger team, QuickBooks has the tools to help you stay compliant and stress-free during tax season.

Ready to get started? Get QuickBooks Online today at an exclusive discount!