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Setting up and Filing 1099-NEC and 1099-Misc in QuickBooks Online - YouTube
Channel: Candus Kampfer
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i thought it would be fun to create a
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new updated 1099 training for you
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because there are some changes so let's
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get in
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i'm gonna share with you what to expect
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if you don't know
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there's been some updates and changes to
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the form so there's not only the 1099
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there's now the 1099 nec
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so let's talk about how to prepare for
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your year end
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with some updates that you're going to
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need to know so let's go through some
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just
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basics about changes and then we'll jump
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straight into quickbooks
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so the first thing to know is as of the
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2020 tax year
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there is a new form that replaces the
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old
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1099 miscellaneous as far as only box
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seven is concerned in other words
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the amount that was formerly box seven
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on the 1099 miscellaneous
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as of 2019 and prior is now box one
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on the 1099 nec there's some other
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changes as well which you can find out
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more about later one thing to know is
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that
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the 1099 nec is specifically reporting
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non-employee compensation so
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subcontractors independent people
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whereas any other compensation is still
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on
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the 1099 miscellaneous i did a whole
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training on this
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inside for my confidence quickbook
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community and my simplified so if you're
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looking for more training that's
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a great place to start but i wanted to
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give you at least some
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of what you'll need to be able to get
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those things answered so let me go in
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and share with you
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my screen and i will share with you
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quickbook online
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so that you can see the adjustments in
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there
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so let's get started so inside the
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online version you have a couple
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different ways to get there so you can
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go here under expenses
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you can click on the vendors and you can
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choose to prepare your
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1099s or you can come over here
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under payroll and click on contractors
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and you'll see prepared tonight it
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doesn't matter which way you go about it
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i'm going to quickly because this is a
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sample file i'm going to write myself an
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example check just so that we
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can see the process of this i'm going to
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go in and write a check
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so you can kind of see the behind the
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scenes of what happens so i'm going to
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go in and i'm going to create a canvas
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camp for
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vendor
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and i'm going to write myself a check
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now remember 1099s are all based on the
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date the
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it's paid so i'm going to just write it
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for the first
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i'm gonna do it to subcontractor
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just so we can have a subcontractor in
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here and i'm gonna set it up as a
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cost of labor and that's it okay so you
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should already have
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yours added in here most likely you've
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already been paying
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your independent contractors throughout
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the year either way
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you want to make sure all of your
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transactions are in before you process
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your
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first check now you'll notice i paid it
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but it doesn't show up here so what i
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need to do and you'll need to do
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for every vendor that you want to make
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sure that you added you want to go into
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your vendors here
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click on vendor and you'll want to open
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them up and you'll want to make sure
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that you click on edit
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and you mark them down here as track
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1099s for nec and then you're going to
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want to add in
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their tax id number that they gave you
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from their
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w9 or whatever you have for them you
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also want to make sure that you have
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a mailing address typed in some
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information you want to make sure this
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box is checked so even if you put the id
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number
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but you don't check it you got to make
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sure the box is checked that's really
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the magic and you're going to click save
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so you want to make sure that everyone
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that you want to give a 1099 to
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has that box checked now when you go
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back in
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and you want to prepare your 1099s or if
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you go under here like i was saying you
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go either way
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you'll see both listed this is different
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for the online version when you click
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add
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you can you can actually add 1099s here
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where they can
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you email them and then they add their
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profile if you want to
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otherwise you just can add them as you
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can pay them and then get the data from
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their w9 if you don't have the data but
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you know that they're going to be
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eligible you can check mark them
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because they reach the 600 limit so
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we're going to go ahead and prepare 1099
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here actually just click directly on it
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and then it's com
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it has like some frequently asked
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questions that you can ask but then you
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click continue
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and you're going to go through so the
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first step let me go back one step
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the first step i had to kind of prepare
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because this is a fake file so it didn't
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have all the data so i put in some
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random numbers
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but you'll have need to make sure your
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legal
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entity name is in here your
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tax id number and your business phone
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number are in here
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then you're gonna click next and this is
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where you do
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your mapping so it will probably have
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nothing check marked because you've
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never been in here before
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most likely in this screen it's new a
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newer version
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so for non-employee compensation you're
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going to check mark the box and you're
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going to find
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your stuff so if you have a
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subcontractor
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you're going to set that up whatever
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expense categories you had
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going to go through and you're going to
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check mark each individual one
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okay so if you go in here and you scroll
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through
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you will have everyone that you needed
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to have like if legal and professional
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was one of the ones that you needed
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you'll notice that as you start checking
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them the names populate to the right
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you'll go through and you'll check each
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one
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that applies to the 1099 and ec
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it doesn't don't worry about whether the
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person met hundred dollars
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just focus on the category that you paid
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them
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okay so what's interesting about the
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online is it takes what's most common
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and puts both of them at the top instead
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of separating them by form
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but if you look to the right it will
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tell you what form so right here it says
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1099
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nec right here it says 1099
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miscellaneous
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so when you click on rents then you can
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come in here and you're going to
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pick like rent expense
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okay so you're choosing what you want
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if you have a bookkeeper that you also
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need it populates to the right once you
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have more than one that's how that works
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okay cost of labor
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you got to make sure it's not employee
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considered expenses
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legal we'll just add a couple there okay
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so you can you can pre-do all of your
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boxes that it applies to if you have
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federal withholding that you withheld
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for either the 1099 miscellaneous or the
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1099 nec you would you would pick the
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appropriate one because you'll see it
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labels everything to the right
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which form it belongs on then you're
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going to click next and it's going to
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give you
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who qualifies okay
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so there you go that's who qualifies you
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can either save and finish and come back
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add from vendor list so if you click
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this it's going to go through
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all your different vendors if you feel
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that someone else qualifies
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that wasn't originally added let's just
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say it's this one
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and i hit save it will then add that
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person as well
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into your list okay so you can
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if they're not showing up but they need
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to be in there you can click add then
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you're going to click next
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and it's going to tell you where it
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belongs so
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candace is going to be on the nec
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melanie hall because she's
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properties and rent she's going to go
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under the rent because we paid her at
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least 900.
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now this is going to tell you which 1099
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contractors meet the threshold 1099
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contractors below the threshold
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and 1099's not marked as
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contractors not marked for 1099. in
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other words they weren't marked
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what it's going to tell you is who they
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are how much they received in payments
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and where it would what how much of what
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you paid them would qualify for nec
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based off the categories that you've
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selected
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so you scroll through and it will have
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any c at the top and it will have the
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1099 miscellaneous at the bottom
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okay so if it qualifies it will have it
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in there
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you can click print sheet and it will go
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through and it will print the sheet
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for you to look at okay so
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if you see that you need to make any
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changes or adjustments you can click
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save and finish later third um just
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before but i'll remind you that it needs
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to be at least 600
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threshold to get it to 99 and that third
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parties paid through a credit card or
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paypal
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um is going to be excluded from 10.99
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okay and it tells you why we already
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talked about because the merchant so
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once you feel that everything here is
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accurate
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you have incl that that meets the
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threshold everyone that you think meets
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you can click finish and prepare 1099s
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okay
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then you can e-file by clicking e-file
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it's going to say this file doesn't
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exist because this is a fake
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quickbooks file but yours would go
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through and it would sync it over to you
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if you want to print it you can click
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print here
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and it's going to walk you through
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printing first your 1099
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nec
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it recommends loading blank paper
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printing your sample on blank paper
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once it looks the way you want it to
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look does it line up or not
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yes it looks good you're going to click
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yes looks good so you would click print
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sample first
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print your sample match it up to your
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paper
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then you're going to click yes looks
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good
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and then you're going to say which form
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is it your 1099 for your nec
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view your contractors which is just
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going to be me as the example
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and then you click print forms you're
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gonna put your
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form in and then you're gonna click
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print at the bottom right
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okay you're gonna do that for each copy
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that you have
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there's five so you're gonna do for all
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five and then
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you're going to go to your 1099 6 1096
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for you and you see the summary page
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it's going to have your tax id number or
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social security you say like which type
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your phone number your contact
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information this is all not legit stuff
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but then we're going to click print
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on a 1096 form it's going to bring up
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what it looks like so it says this is
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your
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address i can show you what a 1096 looks
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like it's right here
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so this is i have these up to pull to
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show you later but basically
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this print right here see how it says
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the name
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the phone number the email address and
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it has a check mark there
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that check mark is saying that it's goes
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to this box to 99 nec
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or 1099 miscellaneous and the reason
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they're different
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forms and you're going to use them
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different for each 1096
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is because the x is going to go in a
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different place
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and you only submit one type per form
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okay e filing you it you don't need a
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1096 because it
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it sits um submits it electronically so
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you have to worry about it
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so you're going to print your 1096 so
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you have every
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person has their own top 1099
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bottom you separate those and then
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you're gonna have one
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summary that's red that is the 1099 so
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it looks like this
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this is their 10.99 okay two to a page
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on the red copy you do not
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um separate these but when you get to
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the other versions you will we'll talk
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about that in a second
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okay so 1099 you print 1096 you print
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the 1099 miscellaneous the 1099
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miscellaneous
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and then if you want a summary you can
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click summary
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and you're going to print the summary
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it's going to have like what is the
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different forms
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how many did you have what was your
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total okay
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sound good when you're done you click
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next
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and you click kick click done and then
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you're done
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you need to you can always go always
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back allocate all of your different
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forms you don't have to do this all at
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one time
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you can do like part of it come back do
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part of it come back
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until you're completely ready to
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actually print them so this is your 1099
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miscellaneous you can read all about it
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if you want to know like okay can you
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give me more details about everything
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which forms
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what boxes all of that you can get more
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details at the irs website
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if you want to kind of look at what the
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1099 form looks like
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this is what the new 1099 nec looks like
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this is the box one for the non-employee
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compensation
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and then you would go through make sure
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that if you there's two to a page if
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you're printing them
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make sure that you void any that are
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you're not using the form
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or if you need to correct them that you
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mark this is corrected this is the
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a copy that goes to irs you have
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the state copy if you need to provide it
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to the state for your
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independent non-employee compensation
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form
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then you have the b which is going to go
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to the recipient you are also going to
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have
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the copy 2 which is also gonna go
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recipient that's why i said you're gonna
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print the same thing five times just on
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different sheets
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to go to different places and then this
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is your copy make sure that you take a
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photo copy of
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the a as well as your 1096 that you
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filled out that you signed as well
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so you'll mark whether it's a nec or a
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miscellaneous which quickbooks will do
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when you print it out
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directly as well thank you for being
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here let me know below
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what was your favorite part was this
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like aha you can now handle your 1099s
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let me know that as well and if you
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enjoy my tips and tricks make sure you
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subscribe to our channel
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and leave us a comment let us know what
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is your favorite we will be doing
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workshops starting this month in january
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so if you're wanting to learn more about
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quickbooks and you want more support and
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help feel free to join us on
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one of our workshops you can go to
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candacecamper.comworkshop or click
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on the link here you will see it and i
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look forward to seeing you inside
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our next video i hope this helped you
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and go out there and
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crush your 1099s hopefully it's not so
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overwhelming just know you need the 1099
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nec for all of your original box
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7 that you used to do on your 1099
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miscellaneous that's just
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no longer there have an amazing day and
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i look forward to seeing you inside our
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next tip and trick
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bye
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[Music]
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you
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