馃攳
Setting up and Filing 1099-NEC and 1099-Misc for QuickBooks Desktop Users - YouTube
Channel: Candus Kampfer
[0]
i thought it would be fun to create a
[3]
new updated 1099 training for you
[6]
because there are some changes so let's
[9]
get in
[9]
i'm gonna share with you what to expect
[12]
if you don't know
[15]
there's been some updates and changes to
[17]
the form so there's not only the 1099
[19]
there's now the 1099 nec
[22]
so let's talk about how to prepare for
[25]
your year end
[26]
with some updates that you're going to
[27]
need to know so let's go through some
[29]
just
[29]
basics about changes and then we'll jump
[31]
straight into quickbooks
[32]
so the first thing to know is as of the
[35]
2020 tax year
[37]
there is a new form that replaces the
[40]
old
[40]
1099 miscellaneous as far as only box
[43]
seven is concerned in other words
[45]
the amount that was formerly box seven
[47]
on the 1099 miscellaneous
[49]
as of 2019 and prior is now box one
[53]
on the 1099 nec there's some other
[56]
changes as well which you can find out
[58]
more about later one thing to know is
[60]
that
[61]
the 1099 nec is specifically reporting
[66]
non-employee compensation so
[68]
subcontractors independent people
[70]
whereas any other compensation is still
[73]
on
[74]
the 1099 miscellaneous i did a whole
[76]
training on this
[77]
inside for my confidence quickbook
[79]
community and my simplified so if you're
[81]
looking for more training that's
[83]
a great place to start but i wanted to
[84]
give you at least some
[86]
of what you'll need to be able to get
[89]
those things answered so let me go in
[91]
and share with you
[94]
my screen and i will share with you
[96]
quickbooks desktop
[97]
and online so that you can see
[100]
the adjustments in there the first thing
[103]
to know
[104]
is when you're setting up your vendors
[106]
as always which i've talked about before
[108]
you're going to go to vendor
[109]
vendor center but we want to always
[111]
start here i have this is my sample file
[114]
so here's the candice camp for example
[116]
i'm gonna go over here to the pencil and
[118]
you are going to
[120]
go you're gonna make sure that the
[122]
vendor name
[123]
the company name your address is all
[125]
accurate then you're gonna go under
[126]
tax settings this is the key you want to
[129]
make sure that you market as
[130]
eligible for 1099 if the person is
[133]
eligible
[134]
and you are going to make sure they have
[135]
a tax id number now this is similar to
[137]
what we've always done
[138]
for taxes where the big change is going
[140]
to happen is when we start
[142]
linking and matching up our
[145]
vendor so you're going to go under
[146]
vendors forms
[149]
print slash e-file this used to talk
[151]
about the wizard it's no longer says
[153]
wizard now it says print e-file your
[155]
1099 forms
[156]
it says are you ready to prepare and you
[158]
hit yes now the first time i click this
[160]
it asks me to do a backup of my
[162]
quickbooks
[162]
so you may need to do that if your form
[166]
doesn't look like this
[167]
when you do it you're going to want to
[168]
make sure you go under the window under
[170]
the help
[171]
and make sure you've updated your
[172]
quickbooks okay
[174]
then you're going to decide whether you
[177]
need the
[177]
nec which is for independent contractors
[181]
or non-employee compensation
[183]
or you may still need the 1099
[185]
miscellaneous which is where you're like
[186]
your rental income your royalties
[188]
all the things that existed before in
[190]
the form still exist
[192]
then you're going to click get started i
[194]
recommend starting with the 1099
[196]
nec and then doing the miscellaneous
[200]
second i recommend setting both forms up
[202]
and going through the process that i'll
[203]
show you with
[204]
mapping and then actually processing the
[207]
forms
[208]
later you can e-file or you can mail
[210]
them in
[211]
if you have over 250 forms you're going
[213]
to still need
[214]
to e-file the cutoff date for 2021 is
[218]
february 1st
[219]
for the 1099 nec for the 1099
[223]
miscellaneous
[224]
you have to have it to the recipients by
[226]
february 1st
[227]
it's normally january 31st but because
[229]
it lands on a holiday this year
[231]
you get an extension to february 1st
[234]
the 1099 miscellaneous has to be mailed
[236]
into the irs
[238]
or electronically filed but if you're
[240]
mailing it march 1st
[242]
if you're electronically filing it by
[244]
march 31st
[245]
okay for the 1099 nec
[248]
you need to both mail it in e-file
[252]
and give it to the recipients by
[255]
february 1st this year so you can go
[258]
ahead and click on get started
[260]
and then you're going to go through and
[261]
it's going to have all of the vendors
[264]
that you have selected are eligible
[265]
that's why we started with that screen
[267]
first
[268]
so that was under vendors vendor center
[271]
everyone who is eligible you know make
[273]
sure you click on the pencil
[275]
go to the tax and make sure they're
[276]
eligible okay that's what we
[278]
started with then you're gonna it's
[280]
gonna have all of them here
[282]
you can clear them all you can check
[284]
mark just the ones you want
[285]
you can also select them all as well
[287]
then you're gonna click continue
[290]
and you're gonna have all of your
[291]
information in here
[293]
if you need to make any changes you can
[295]
click on any of the boxes
[297]
double click and you can make
[298]
adjustments to anything that you need to
[300]
adjust if you need to address the
[301]
address
[302]
anything like that you can i recommend
[304]
having them give you a w-9
[307]
filled out so it's going to have their
[309]
contact information as well as
[311]
their mailing address their either
[315]
tax id number whether that's a social
[316]
security or an ein
[318]
they'll give you that and you'll have
[319]
all of the data you want to keep that in
[321]
your file
[322]
once you make sure all of this is
[324]
accurate you're going to click continue
[326]
and this is where all the magic happens
[327]
this is really we've always had mapping
[330]
here
[330]
but this is more important than ever to
[332]
have your things mapped correctly
[333]
now every category in here you want it
[336]
to automatically go to box one you can
[337]
check mark that
[338]
i do not recommend it what i recommend
[342]
doing instead is going through every
[343]
account that you have over here to the
[345]
left
[346]
and mapping it to whether it's going to
[348]
show up on the
[349]
nec or not remember nec is for
[352]
non-employee compensation
[354]
so these accounts to the left if you're
[356]
wondering like where do these
[357]
populate from whenever you are entering
[360]
a bill
[360]
or writing a check and you're in here
[364]
writing a check
[365]
when you select the account that you
[367]
wanted to go to so let's just say
[369]
the canvas camp for example that we have
[371]
as a
[372]
vendor and say we're going to write a
[375]
check for a thousand dollars
[377]
oops let me fix that
[381]
when you're over here and you're
[383]
selecting where you want it to write to
[384]
so maybe you're
[385]
you have subcontractor as your expense
[387]
category cost of goods
[389]
or maybe you have professional fees and
[392]
these are all the people that you
[393]
need to give a 1099 to it's up to you
[396]
depending on how you set
[397]
up your quickbooks but you're going to
[398]
want to make sure that anybody who gets
[400]
the 1099 nec
[402]
that you know what categories you're
[404]
using here that's the trick
[405]
okay the account that you're using
[407]
whether you're
[408]
entering it here or in a bill you are
[412]
going to find it to the left so if you
[413]
say professional fees oh yep that's one
[415]
of them
[416]
that's anything that goes there is
[417]
considered non-employee compensation
[420]
maybe you have a professional fee or
[422]
something like that maybe
[424]
labor you're gonna say oh yep that's
[425]
everybody so you're gonna need to know
[427]
where those go to okay so you're gonna
[430]
go through maybe it's
[431]
subcontractor goes there as well okay
[434]
professional fee subcontractor whatever
[436]
so you go through each of these
[437]
you decide on every line item whether or
[440]
not
[441]
it is omitted meaning it's not going to
[443]
show up on the 1099 doesn't qualify
[446]
or yes that is what i need in box one or
[450]
if you have federal withholding that you
[451]
withheld or state withholding
[453]
you'll need to allocate the mapping to
[455]
each of those as well
[456]
so go through and you'll pick each one
[459]
whether it applies or not
[461]
now if it's like say rent expense you
[464]
will not be able to
[465]
choose miscellaneous box until you go to
[468]
the miscellaneous
[469]
1099. mine is showing up just because i
[472]
did a training
[472]
on this before all right so over here is
[476]
how it's going to sort which accounts
[477]
are going to show up in your list
[478]
you can choose all accounts and that's
[480]
every single account that you have in
[482]
your whole
[483]
chart of accounts if you want and you
[485]
can sort it by
[487]
type so that you can easily go through
[489]
and find it
[490]
or you can sort it by what accounts are
[492]
going to show on the 1099.
[494]
other words where anyone who's been paid
[497]
in this prior screen that you've
[499]
selected it's going to show up those
[500]
accounts that were used in those
[502]
examples
[503]
okay mine show a lot of different ones
[505]
just because i do a lot of different
[506]
training
[507]
with the different people that are in
[509]
these examples that i've created here
[512]
okay once you've mapped every category
[515]
and whether or not
[516]
it should be considered going to the nec
[520]
it's either yes or no basically if it's
[523]
no it's omit if it's yes it goes to one
[525]
of these
[525]
three boxes then you're going to click
[527]
continue
[528]
if you need to know more about the
[530]
threshold you need to know it's a 600
[532]
threshold you can you can check that
[534]
don't worry about the threshold as much
[536]
you don't need to decide if somebody
[538]
should get it you just need to decide if
[540]
this expense category or this category
[543]
that you used in quickbooks
[544]
if it qualifies for the nec or not and
[547]
then you're gonna click
[547]
continue okay you're gonna have
[550]
payments that are excluded you're gonna
[553]
have payments or included and these are
[555]
excluded you can also look at your
[556]
details here
[557]
now something important to know is if
[560]
you pay
[561]
through a merchant a third-party service
[563]
like you use your credit card
[565]
or paypal because those people when they
[567]
set their accounts up
[569]
let them know they give them their tax
[571]
id number you don't need to provide a
[573]
1099 to anybody
[575]
that is using a third-party merchant
[577]
provider
[578]
so if you ever pay through your debit
[579]
card or credit card they're going to get
[581]
a special 1099k
[583]
so if when you're paying these and
[584]
anybody you paid with credit card is not
[586]
showing up
[587]
that's okay those are not something that
[590]
you need to worry about
[591]
they have it somewhere else so when you
[593]
get to the next screen when you click
[594]
continue
[595]
and you get here and you see okay yep
[598]
that's under the dollar amount plus
[599]
technically ace hardware doesn't qualify
[602]
um as an independent contractor then
[604]
you'll go to
[605]
say candace camper okay she doesn't
[608]
qualify
[609]
what are those transactions and you'll
[611]
go in
[612]
and you can always look up all the
[614]
transactions that were processed
[615]
inside your vendor center for that
[617]
vendor you can
[618]
double click on the checks and go oh
[620]
yeah that was payroll stuff that's not
[622]
10.99
[623]
double click on transaction that
[624]
happened oh yeah that's a journal entry
[626]
that's a reversing entry
[628]
that doesn't impact that's an adjustment
[630]
a double click on the next one and you
[632]
go through
[632]
oh yeah we paid for a note payable
[635]
that's not
[635]
on the 1099 in ec and you'll go through
[639]
so just because on here it shows
[642]
excluded you can go back and make sure
[644]
that it's not mapped to the wrong
[645]
account
[646]
or didn't go to the wrong place if after
[648]
you verify that
[649]
if everything's accurately mapped and
[652]
you feel confident that
[654]
your one person or your 10 or 100
[656]
whatever it is is accurate then you're
[658]
gonna click
[658]
continue okay so this is just verifying
[661]
who really gets the nec form the 1099
[665]
or not so you have two choices you can
[667]
either print
[668]
your 1099 by clicking print make sure
[671]
you pick the correct calendar year for
[673]
what you're looking for
[675]
you'll have who it's for and you can
[677]
print i do recommend that the first time
[679]
that you print it you grab
[680]
a white sheet of paper mark an x stick
[683]
it in
[684]
and test it so you can figure out where
[685]
your form applies
[687]
it's gonna be just like a laser check
[689]
after you've printed all five
[691]
versions that you're gonna be giving the
[693]
red one is for
[694]
i can i can show you that in a minute
[695]
but the red one is for irs
[698]
then you have two for the vendor or the
[700]
recipient
[701]
one is also for the state and then one
[703]
is for you to
[705]
receive as well okay so you're gonna
[707]
print all five versions
[708]
you just click print and you're gonna
[710]
print it five times on five different
[712]
forms
[712]
and then you're gonna print your 1096
[715]
okay
[716]
the 1096 is the summary you will need a
[718]
1096 for each
[720]
version of your 1099 form so if you have
[723]
the
[724]
1099 nec you're going to have that and
[727]
it's going to have its own 1096
[728]
and if you have 1099 miscellaneous it
[730]
will have its own 1096. okay
[733]
so you're going to go through that if
[735]
you want to e-file you'll click e-file
[737]
it will connect to the internet it'll
[739]
click connect to
[741]
quickbooks which i'll show you you're
[744]
gonna
[744]
put in there is a cost it's two dollars
[746]
and ninety cents per form you're gonna
[748]
put in
[748]
how many forms you have so there's two
[752]
1099s to a form typically but in this um
[755]
when you print them on this you're just
[756]
going to count
[757]
each individual business that you're
[758]
providing in 1099 for will be considered
[761]
a four
[762]
so how many of those do you have you're
[763]
going to select that
[765]
and then you'll move forward with
[766]
entering it so they know how many that
[768]
you'll have
[768]
okay the 1096 you don't have to worry
[771]
about when you
[772]
file electronically so that's the
[774]
process
[775]
if you are a
[778]
desktop user so this is your 1099
[780]
miscellaneous you can read all about it
[782]
if you want to know like okay can you
[783]
give me more details about everything
[785]
which forms
[786]
what boxes all of that you can get more
[789]
details at the irs website
[791]
if you want to kind of look at what the
[792]
1099 form looks like
[795]
this is what the new 1099 nec looks like
[798]
this is the box one for the non-employee
[800]
compensation
[801]
um and then you would go through make
[803]
sure that if you there's two to a page
[804]
if you're printing them
[806]
make sure that you void any that are
[808]
you're not using the form
[810]
or if you need to correct them that you
[811]
mark this as corrected this is the
[813]
a copy that goes to irs you have
[817]
the state copy if you need to provide it
[819]
to the state for your
[821]
independent non-employee compensation
[824]
form
[824]
then you have the b which is going to go
[826]
to the recipient you are also going to
[828]
have
[828]
the copy 2 which is also going to go
[831]
recipient that's why i said you're going
[831]
to print the same thing five times just
[833]
on different sheets
[834]
to go to different places and then this
[836]
is your copy make sure that you take a
[838]
photocopy of
[840]
the a as well as your 1096 that you
[844]
filled out that you signed as well
[846]
so you'll mark whether it's a nec or a
[849]
miscellaneous which quickbooks will do
[851]
when you print it out
[852]
directly as well so that's what you're
[854]
going to do for your
[857]
1099 nec when you're all done we'll hit
[860]
save and close and then let's go back in
[862]
and talk about the 1099 miscellaneous
[866]
so the 1099 miscellaneous is right here
[868]
you're going to click get started
[871]
it will also have your same list of ones
[873]
that you said are eligible for the 1099.
[876]
you're going to click continue and if
[878]
you want to link up now your
[880]
rent expense any of the things that go
[882]
into these
[883]
list of boxes there's 15 if you have
[886]
anything that
[887]
categorizes into here whether it's rent
[889]
if you have
[890]
crop insurance proceeds if you have you
[893]
know
[893]
gross proceeds from an attorney all
[895]
these different things
[896]
um if you want to know more about it we
[898]
did a training on that
[900]
um which i mentioned before that's
[901]
something we do more inside comments
[903]
quickbooks or
[904]
our quickbooks simplified community so
[906]
rent expense
[908]
you click here you go through if they
[910]
don't if these things don't belong
[912]
you want to make sure that they all
[913]
select as omitted
[915]
anything that was originally in here
[917]
that you chose for your non-employee
[919]
conversation for the nec
[921]
it will also say you cannot change it in
[923]
here because you did that in another
[925]
screen
[926]
but it does show it just like it showed
[928]
rent expense
[929]
when we were in the 1099 nec i recommend
[932]
actually mapping everything
[936]
and then going back and printing your
[937]
form so once you feel good about
[939]
everything you selected
[940]
you're gonna click continue you'll have
[943]
view payments or exclude just like
[944]
before
[945]
click continue you can print and look at
[947]
those reports
[948]
if your 1099 miscellaneous anything you
[951]
have
[951]
qualifies it will let you know it's
[954]
included
[955]
will be on the left excluded or unmapped
[958]
will be to the right
[960]
you'll notice that none of these
[961]
technically qualifies we didn't have
[962]
rent in this example
[964]
but if you do or any of the other boxes
[967]
they should show up here
[969]
you're going to go ahead and click
[970]
continue go through print your forms
[974]
that you need which i didn't have any or
[976]
1096 if you have one as well or e-file
[979]
okay the same things apply as far as if
[982]
you're paying
[983]
rent or any of the categories for
[986]
with your credit card they won't show up
[988]
either now
[989]
something you may want to know is if you
[991]
go here to vendors 1099 forms
[993]
if you just want to see like who
[995]
qualifies and what it is if you go under
[997]
10.99
[997]
review 1099 vendors if you click here
[1000]
you'll see
[1001]
every vendor you have whether you say
[1003]
they're eligible or not and if they have
[1004]
a tax id number
[1006]
what is their billing information so
[1007]
that's a great report to pull
[1009]
you can also pull the summary and the
[1012]
detail here and if you want to order
[1014]
your forms
[1015]
from intuit you can order your forms
[1017]
directly from intuit if you're not going
[1018]
to do
[1019]
the e-file so that is
[1022]
the update on how to process your
[1025]
1099 forms i will do an additional video
[1028]
for how to process them if you are using
[1030]
quickbooks
[1031]
online if you're looking for the online
[1033]
version click on the link above
[1035]
and you can find that if there's a
[1037]
separate process
[1038]
so we'll create a video for each thank
[1040]
you for being here let me know
[1042]
below what was your favorite part was
[1043]
this like aha you can now handle your
[1045]
1099s
[1047]
let me know that as well and if you
[1052]
enjoy my tips and tricks make sure you
[1054]
subscribe to our channel
[1056]
here on youtube and leave us a comment
[1058]
let us know what is your favorite
[1059]
we will be doing workshops starting
[1062]
this month in january so if you're
[1064]
wanting to learn more about quickbooks
[1066]
and you want more support and help
[1068]
feel free to join us on one of our
[1070]
workshops you can go to
[1072]
candacecamper.comworkshop or click
[1074]
on the link here you will see it and i
[1077]
look forward to seeing you inside our
[1079]
next video i hope
[1080]
this helped you and go out there and
[1082]
crush your 1099s
[1084]
hopefully it's not so overwhelming just
[1086]
know you need the 1099
[1087]
nec for all of your original box
[1090]
7 that you used to do on your 1099
[1093]
miscellaneous
[1094]
that's just no longer there have an
[1096]
amazing day and i look forward to seeing
[1098]
you inside our next tip and trick
[1101]
[Music]
[1106]
bye
[1109]
[Music]
[1112]
you
Most Recent Videos:
You can go back to the homepage right here: Homepage