Setting 1099 Preferences

You are required to issue 1099 forms to certain contractors and vendors. To track 1099 information for the contractors you pay, and to have QuickBooks determine who qualifies for a 1099 form, you must turn on the preferences for 1099s.

Select Preferences from the Edit menu.

Click the Tax 1099 icon.

Click the Company Preferences tab.

Click Yes to turn on your access to the QuickBooks 1099 features.

QuickBooks has listed 1099 payment thresholds based on federal regulations. If you want to change any of these amounts, do so in the white columns.

Click OK.

Did You Know?

You can give 1099s to contractors under the $600 threshold. Although the IRS requires that you provide contractors with 1099s if you pay them $600 or more in a year, you are allowed to give 1099s for less than $600. If you prefer to issue 1099 forms for a lesser amount, change the threshold to the amount at which you want to start issuing forms. Don't, however, make the threshold higher. You can face penalties from the IRS if you fail to issue 1099 forms to contractors who make at least $600.

Did You Know?

You can select the accounts to be used for tracking 1099 expenses. In the Tax:1099 Preferences window, click in the Account column next to a 1099 category and then click the account where expenses in this category are tracked. If more than one account applies to this category, select Selected Accounts at the top of the account list and click each account that is to be included in this category.

Did You Know?

You can find out which vendors need 1099s. At the end of the year, you can generate a report that shows you how much was paid to each of your vendors, so you can track which vendors qualify for 1099s. From the Reports menu, select Vendors & Payables, 1099 Detail. Change the 1099 options at the top of the report to show all vendors and you will see a list of how much was paid to each of your vendors, within the specified 1099 accounts. To expand the list to include all the accounts, change the 1099 options at the top of the report to show all allowed accounts.

Show Me. QuickBooks 2006
Show Me QuickBooks 2006
ISBN: 0789735229
EAN: 2147483647
Year: 2005
Pages: 328
Authors: Gail Perry © 2008-2017.
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