Need to generate your contractor payments report to provide to your accountant, professional bookkeeper, and enrolled agents to file your 1099s for you?
This step-by-step guide will show you how to generate the 1099 transactions details report in QuickBooks Online.
I will be using the sample Craig’s Landscaping and Design company file. To get started, follow the below steps.
Log into your QuickBooks Online account.
Click on the Expenses tab on the left-side navigation bar then select Vendor.
Review each service-based vendor that you made a payment to throughout the prior year. You need to make sure you have a completed Form W-9 from the vendor on file and the track payments for 1099 box is checked below their tax identification number.
To generate the 1099 Transaction Details Report, you will need to pretend like you want to process your 1099s through QuickBooks Online.
The first time you run this report you will receive a blank page. Let’s go through the process of setting up the 1099 preferences.
Click on the Workers tab then select Contractors. Click on the Prepare 1099s button. This button is also located in the Vendor center.
Click the Let’s get started green button to begin the 1099 setup process.
Enter the business name, address and tax ID as recorded with the IRS then click Next.
Select Box 7 - Nonemployee Compensation then select the multiple expenses accounts you used in recording payments then click Next. Repeat this step if you have other types of 1099 payments that fall outside of Box 7.
In the next screen, review all of your contractors’ information to make sure you have a tax ID and email address on file. In this screen, you can add any missing information or a new vendor to the list. Once you have verified everything is correct, click Next.
Only contractors with payments meeting the $600 threshold that were paid via ACH, debit card and excluding credit card payments will be shown in this screen for Box 7.
Click save and finish later to exit the setup screen since you are going to be using a 3rd party payroll system or providing a report to your accountant to file your 1099s for you.
To print out a 1099 report to provide to your accountant or to import into another 3rd party payroll or 1099 filing system, do the following:
Click on Reports on the left-side navigation bar.
Scroll down to the Expenses and Vendors section under standard reports.
Select the 1099 Transaction Detail Report, then export to pdf or excel.
To run a report to get the vendor full contact details, go back to the report list and select the Vendor Contact List report under the Expenses and Vendors section.
Click the Customize button to customize the report to include additional columns and filter out your 1099 contractors.
Under Rows/Columns, check the box next to Track 1099 and company name, then reorder the columns and click the Run Report green button.
Sort the report by the Track 1099 column in ascending order. Export this report as pdf so you can have it available for the next step.
Click the Customize button again then filter out only the vendors that have “Yes” under the Track 1099 column then click the Run Report green button.
You can export the Vendor contact list report to excel or pdf then email it with the 1099 Transactions Detail Report to your accountant or use both reports to update your 3rd party payroll system or 1099 filing system.
Feel free to share this QuickBooks Online tip with other users. Contact us if you need help preparing and filing your 1099s.