Add 1099-MISC Form Electronically Sign with airSlate SignNow

Add 1099-MISC Form electronically sign

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