Lots of paperwork and forms are filled during the tax filing. These forms are to be completed & filed by the employers accordingly. One such form that you will come while tax filing id form 1099. This form is basically filed to differentiate between the type of incomes which are not categorized as the regular job of the candidate or applicants. Employees get the W2 form for tax filing but those employees who do not receive the W2 form get the 1099 form.
Different categories of forms are available for transactions like Contribution form, Government payments, Social Security Benefits, Cooperatives, etc. One of the most common forms that you can come across in 1099 is the 1099 MISC form which is one of the most common types. This form is generally for the independent contractors who get contracts from different companies and employees. For instance, if an employee is working as a freelancer then they will receive the 1099 MISC form for filing and the amount that is filed will be received by them.
Preparation for the 1099 MISC Forms
To fill in and file the 1099 MISC forms, you will have to complete the following steps:
- Acquiring information which is required for the 1099 MISC forms: A type of information is essential to be entered by the application. They are followed:
- Business Information
- Receiver’s Tax ID
- Amount to be paid
- Federal Income Tax which is withheld
- Section 409A Adjournment and Income
- State and Local details
- Precise details: Verify the details that you have acquired and entered in the form to ensure that the details provided are valid and authentic. Now, you will have to check for the total amount for the year-end. You will also have to run the Form 1096 to ensure the details authenticity.
- Printing and Distribution of Forms: The form is available in multiple sections which are to be sent in different divisions. The details are as follows:
- Copy A to IRS
- Copy 1 to State Tax Department
- Copy B to the recipient
- Copy 2 to the file including the State Income Tax Return by the receiver
- Copy C to the Applicant (Payer)
- Filing the 1099 MISC form by the Internal Revenue Service: FIRE (Filing Information Returns Electronically) is the means through which you can easily file the 199 MISC forms. January 31st of every year is considered to be the last date of filing the 1099 form.
How can you Pay 1099 Independent Contractors/ Contractors?
Independent Contractors are also known as the 1099 Contractors. They generally acquire compensation for their services through various options that are basically discussed when the contract is prepared. This contract is prepared for the contractor and company. The two means by which this process is carried out are:
- By the Job: Through this option, you make payments for the 1099 Contractor after the work has been finally completed.
- Hourly basis: This option is mostly followed by many companies. The payment is made on an hourly basis for these contractors.
How to set up a 1099 Independent Contractor Vendor?
Independent Contractors are basically the person who owns an independent business or trade and it is open for public services. If you want to set them in a bookkeeping software like QuickBooks, then you will have to follow the instruction below:
- Open your QuickBooks application and browse for the 1099 MISC tab.
- Turn ON this feature for this filing procedure.
- On a new window. Click on the Add a Vendor option.
- Arrange the vendors for whom you will be getting the MISC form.
- Finally, create the expense account to assist all the vendor payments.
Ways to File Form 1099 Form
There are two ways of filing the 1099 form.
- Manually: This procedure is carried out through an email.
- Electronically: This process is also known as the Online method.
In any of the above process, you will have to send a Copy A of 1099 from to IRS and Copy B to the Contractor or Independent Contractor. There is only one difference that arises that how the form is filed, manually or digitally.
The procedure of the E-Filing of the 1099 MISC
With the assistance from the FIRE system, you can easily file the Copy A of a 1099 MISC form to the IRS applicant. To continue this procedure, you need to generate the form through a suitable bookkeeping solution like QuickBooks. Before proceeding to the FIRE system, the applicant will be in need of the Transmitter Control Code (TCC). By doing so, you can generate the form 4419 which can be either mailed or faxed according to the requirement. It is mandatory that you file this form 30 days prior to the last date of the 1099 MISC form.
How to generate the old 1099 forms
To generate the old 1099 Forms, you will have to follow the steps below:
- Establish a connection with issuing company.
- Establish a connection with Tax developer.
- Establish a connection with issuing IRS.
Printing the 1099 Forms through QuickBooks
Make sure that QuickBooks application which is installed in the system is in the single user mode and you have a 1099 form already printed. Now, just follow the instructions mentioned below:
- To check whether all the details mentioned in the 1099 application is correct, you can use the QuickBooks Desktop 1099 wizard.
- In case you have applied the wizard method then you will have to follow the instruction figure 6 and select the appropriate filing method. Then click on Print 1099s tab.
- In case, your 1099 form has a Wisconsin ID then you will receive a message for which you will have to press OK.
- Press OK after you have selected the accurate date for the current 1099 form.
- Press the print tab to print the 1099 form.
- You can view the alignment and other details of the form by previewing it.
Through this procedure, you can easily print the 1099 Form through QuickBooks without any issues.
With the steps instructed above, you can successfully fill and file the 1099 forms. If you have any doubts and queries, you will have to reach out to QuickBooks Technical Support consultancies like AccountsPortal.Co for assistance. They provide round the clock assistance, so you can connect with them at any point in time. You just have to give a call on the helpdesk toll-free number ✆+1-800-796-0471. Do visit their website, Accountsportal.co for more details. On the website, you can locate the Live Chat Assistance and chat with the expert who is available. This way also you can resolve all your doubts and queries.