Preparing for 1099 Season

1099 Vendor Maintenance

Are you ready for 1099 season?

1099-Misc forms are the forms all businesses are required to send to any non-employee individuals (and attorney corporations) who they paid more than $600 during the year. This often creates a scramble in January as businesses and their accountants try to find correct tax ID numbers and addresses for contractors paid in the prior year.

New Deadlines

In January 2017, for the first time, businesses will be required to submit information to the IRS and the taxpayer at the same time. Copies (either electronic or paper) of 1099-Misc forms for Non-employee Compensation (Box 7)  for the year 2016 are due January 31. Previously, businesses had  extra month or two to resolve discrepancies and file the form copies with the IRS after sending them out to taxpayers. This means it will be even more important to be prepared with the correct information for your independent contractors, etc before January rolls around.

W-9 Before $$$

The best practice is to insist that your vendors all submit a W-9 form before cutting that first check. However, inevitably, during the course of filling out the 1099s, businesses and their accountants find a few vendors who slipped through the cracks.  Since the timeline is so abbreviated this year, the next best thing is to start reviewing vendors NOW to see who has missing information.

If you are using QuickBooks, below are some quick ways to identity those Vendors who might be a problem in January.

Using QuickBooks Online

Create a customized Vendor Contact List with the following columns:

  • Vendor
  • Track 1099
  • Tax ID
  • Phone Numbers
  • Email
  • Notes (We use this for Entity Type)

QuickBooks Desktop 1099 Vendor Maintenance
Find any Vendors that are listed as Track 1099 – Yes, and don’t have a Tax ID listed. For each Vendor, email them a link to the W-9 form. Once you’ve got it back, enter the Entity Type in the Notes field, the TIN in the Tax ID field, and attach the completed W-9 to the vendor, using either QuickBooks’ attachment feature or your favorite document management system, like SmartVault

Using QuickBooks Desktop for Windows

Reviewing Vendors is much easier in the desktop version, since there is a pre-made report to track this information. Select Review 1099 Vendors from the Vendors > Print/E-file 1099s > Review 1099 Vendors.
QuickBooks Desktop 1099 reprot

Using QuickBooks Desktop for Mac

The Mac version also lacks a built-in report to review Vendors, so again, you’ll need to create a custom report starting with the Vendor Contact List. Use Report Options to select the following columns:

  • Vendor
  • Track 1099
  • Tax ID
  • Phone Numbers
  • Email
  • Notes (We use this for Entity Type)

You may also want to select Address to make sure you have a complete address on file for this vendor.

QuickBooks for Mac 1099 Vendor Maintenance

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