You can select “Multiple accounts” to report in Box 7 on the 1099Misc. You should see that option with the Prepare 1099s under Accounts #2 tab (see screenshot). (From the left dashboard > Expenses > Vendors > Click Prepare 1099s at the top right right corner > Continue your 1099s > Go to #2 Accounts > Under Box 7, select Multiple accounts from the Chart of Accounts).
Thank you for your business in 2016. Here’s to a successful new year in 2017! ….
FREQUENTLY ASKED QUESTIONS
Question: How to run 1099 Vendor Summary Report in QBO Plus?
Answer: Unfortunately, there is no such built-in report yet available in any QBO plus.
The workaround is to run Vendor Transaction Details Report and filter select vendors (who you think should get 1099s) from the report but that many not determine who should actually get a 1099-MISC based on such transactions.
Refer to these articles and also consult your Accountant.
Box 16-18 is state information. QuickBooks does not do state information at all.
The way around this box 16 issue in QuickBooks as I heard is one of two things:
1) Print the 1099 and hand write in the state information.
2) Use the internet based 1099 prep software that will allow for state entries.
The basic rule is that you must file a 1099-MISC forms when you pay an independent contractor (sole proprietor type) $600 or more in a year payments you made by cash or check. ( https://www.irs.gov/pub/irs-pdf/i1099msc.pdf )
Beginning with the 2011 tax year, the IRS requires you to exclude from Form 1099-MISC any payments you made by credit card, debit card, gift card, or third-party payment network such as PayPal. If they meet the requirements, these payments are being reported by the card issuers and third-party payment networks on Form 1099-K.
In QuickBooks, here is a reference list of codes to use when you record payment transactions to exclude:
First, you will need to create a new dummy bank account. You will also need a due to the owner as a liability type account to use it for later reimbursement.
Step#1 Use bank deposit form (create + sign > other > bank deposit) to record contributed amount by the owner to pay a contractor. Account to show as due to the owner liability type account. See screenshot below.
Step#2 Use Expense form (create + sign > vendor > expense) to create contractor expense posted to appropriate expense account. See screenshot below.
Step#3 Use Check form (create + sign > vendor > check) to write the reimburse check to the Company Owner. See screenshot below.
In case there is no need to reimburse the owner (step#1), you will use a capital contributed account which would be an Owner’s Equity type account.
Review of 1099 vendors and payments list. See screenshot below.
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Year-end is quickly approaching. Be prepared for the year-end. Here is a 10-point checklist you should go through to keep your QuickBooks Online accounts in order and plan for the year-end processing.
Make sure all bank reconciliations are up to date. This includes credit card accounts as well. Review any unmatched items (both deposits and payments) that you would not expect to be outstanding. This may be the result of a duplicate entry.
It is important these banks reconciliations are printed (or saved) at year-end.
Click on the screenshots below to enlarge them
Make sure all the customer payment items in Undeposited Funds account have not yet been deposited to the bank account. If all the deposits are already posted to the bank account, this account should show zero balance. Any balance in Undeposited Funds account (even after bank accounts are already reconciled) may be the result of a duplicate entry. Review income and account receivable accounts and resolve it.
A/R and A/P Balances on Cash Basis
Run the Balance Sheet on the cash basis accounting method. If the transactions were properly recorded, these two accounts should not show a balance in the Balance Sheet.
Make sure Employee Advances account is reconciled. This account should include the advances that are yet to be repaid or have not been deducted from the payroll.
Payment to Independent Contractors (1099s)
Make sure you have IRS Form W-9 on file and they are up to date.
You can google 1099 and W-9 for all the handy information you need.
Other Balance Sheet Accounts
Review all other balance sheet accounts. Make sure all assets and liabilities are shown properly. It is also time to make adjustment entries if necessary.
Depreciation on Fixed Assets
If you have posted your depreciation on fixed assets entry, make sure these are up to date. If not, consult your Accountant.
Uncategorized Income & Expense / Ask your Accountant
If you have any uncategorized income and expense in P&L that have been used to post entries that you aren’t sure what to do with, now is the time to have a look. If needed, ask your Accountant and resolve it. Also, review all income and expense accounts and make sure it makes sense.
Keep a separate spreadsheet Account Analysis of Retained Earnings account. This account should include income or loss from prior years. It may also include reclassifying transactions within equity type accounts. Consult your Accountant if it involves any entry posted from outside of equity accounts.
Close the books
Close the books once you have submitted final numbers to your Accountant for review and tax preparation. Consult your Accountant in case there is a need to make changes.
There is no built-in 1099 related summary report for non-employee compensation at this time
Here is how you can get that information.
Go to prepare 1099-MISC forms screen (blue navigation bar > vendors > prepare 1099s button (right corner) > “Follow the steps to prepare 1099-MISC forms” screen > Choose “Print using purchased forms” link (at the bottom) > side arrow will move down and expand with more information > select “Print Information Sheet” blue button (at the bottom).
It will show printable “1099 Information Tax Year 2014” report.
It used to be able to preview the 1099 Summary Report without having gone through all the prepare 1099 steps. There is no way to preview accounts and vendors meeting the threshold without going through the prepare 1099s steps now. It is not clear why the “1099 Transaction Detail by Vendor” is not even a built-in report at this time.
To run this report (go through all the steps), click on the Box 7 payment amount by any vendor to get a vendor report to support that value. See attached screenshots below.
If you want to run this report for another vendor, you will need to do it all over again. Would not it be nice if they have the simple build-in “1099 Transaction Detail by Vendor” for ALL the vendors in one customize format?
Send them your feedback before it’s too late for this year.
Gear (upper right corner) > your company > FEEDBACK.