Does your business outsource some of its tasks to third-party independent contractors? If so, you’ll need to provide those contractors with a 1099-MISC form for tax purposes. The Internal Revenue Service (IRS) requires this form for independent contractors earning at least $600 during the tax form. Thankfully, there’s a quick and easy way to set up vendors to receive a form 1099-MISC form using the Quickbooks accounting software.
When you ready to set up 1099-MISC forms for your vendors, log into your Quickbooks account and choose Vendors > Vendor Center. From here, right-click the vendor’s name for whom you wish to set up the 1099-MISC form and click “Edit Vendor.” Next, click the Address Info tab and double-check the vendor’s information to ensure it’s correct.
While accessing the Address Info tab, make sure the Address field contains a two-letter state abbreviation and postal code. If either of these elements are incorrect, you should correct them now. Next, make sure the vendor is listed is a person. As explained by Intuit, the vendor’s legal name should be displayed as his or her first name, middle initial, and last name. If you don’t know the person’s name, leave the Company Name field empty to prevent double names from being displayed on the 1099-MISC form.
When you are finished verifying the Address Info tab, click the Tax Settings tab, after which you’ll be prompted to enter the vendor’s tax identification number in the Vendor Tax IF field. Here, click the option for “Vendor eligible for 1099.” This tells Quickbooks to provide the vendor for a 1099-MISC form. Click “OK” to save the changes. Lastly, repeat these steps for any vendor earning more than $600 in the calendar year.
After setting up vendors to receive a 1099-MISC form, you should reach out to them to ensure they receive it. Of course, most vendors will contact YOU if they don’t receive, but it’s still a good idea to keep the lines of communication open. Because when tax time rolls around next year, you’ll probably be busy working on your own accounting needs. In any case, the steps listed here should allow you to set up the 1099-MISC form for any vendors with whom you do business.
Congratulations, you’ve just set up your vendor or vendors to receive a 1099-MISC tax form!
Did this tutorial work for you? Let us know in the comments section below!