How to Map 1099 Accounts in QuickBooks Online and Desktop?

A 1099 account records payments to independent contractors or vendors. Businesses must issue a 1099 form to individuals or unincorporated businesses paid $600 or more for services in a tax year. This ensures compliance with IRS tax reporting requirements.

This article explains the steps to map 1099 accounts in QuickBooks Online and Desktop.

What is a 1099 Account?

A 1099 account in QuickBooks Online records payments made to independent contractors. These payments require reporting to the IRS and the contractor as part of 1099 tax requirements.

How to Map 1099 Accounts in QuickBooks Online?

To map the 1099 accounts, you are required to navigate through the Vendor’s menu, provided in QuickBooks Online. After that, the drop-down option can be opened to select the option for every category you witness there.

Following are the instructions for the same:

• Go to the Vendors tab in the main menu.
• Select the vendor from the list and click on the vendor’s name.
• Click Edit to assign the 1099 account.
• In the Account field, choose the 1099 account you created.
• Check the Track payments for 1099 box to enable payment tracking and generate 1099 forms at tax time.
• Click Save.
• To verify the mapping, create a new invoice for the vendor.
• The Account field should automatically select the 1099 account.

Follow the on-screen instructions to verify all details and ensure everything is entered correctly. Once confirmed, click Save and close the 1099 wizard.

To make future edits, go to the Vendor section or Chart of Accounts.

Mapping the 1099 account is essential, as the IRS now requires Form 1099-NEC for certain filings. Ensure all information is entered in the correct box when submitting the form.

Review and Print 1099 Forms

• Click “Get Paid & Pay”.
• Select “Vendors”.
• Click “Prepare 1099”.
• Print the 1099 form.

How to Map an Account to 1099 in QuickBooks Desktop?

In order to map accounts for 1099 in QuickBooks, it is important to see if the available vendors are eligible or not. Once the 1099 eligibility of every vendor is determined, you can begin mapping the 1099 accounts.

After this, you can run the 1099 summary report to check if the changes are done. If you prefer, you can confirm the particular account mapping from the specific vendor’s page. In this article, we have highlighted how to map 1099 accounts in QuickBooks Desktop.

How to Review the Eligibility for Vendors for 1099?

There can be cases when you will not be able to locate the drop-down menu to map the accounts. In such a scenario, you must see if the vendors are qualified for 1099 or not. If that is the case, the names will be added to the list or report.

To find out if the vendors are qualified or not, perform the steps given below:

• Press on the Vendors tab.
• Now choose the option for Vendor Center.
• Select the name of the particular vendor.
• Now, once it is done, you can shift to the section for Tax Settings.
• Now, you need to checkmark for the specific box situated close to the section for Vendor eligible for 1099.
• Click the OK button.
• Once it is complete, you can conduct the same process for other vendors too. Ensure that these vendors are qualified for 1099. It must be considered when you attempt to map the accounts. Choose the Show All Accounts (all the accounts from the given Chart of Accounts) option, or show 1099 Accounts (the accounts used on a specific transaction for 1099 vendors).

How to Begin with Mapping 1099 Accounts in QuickBooks?

Once the eligibility of the vendors is verified, it is possible to map the accounts very easily now.

Here are the steps to map 1099 accounts in QuickBooks Desktop:

• Go to the Edit menu.
• Now choose the Preferences option.
• Now press on the Tax 1099 option placed on the left.
• Now, Choose the tab for Company Preferences.
• Now shift to the line for Form 1099-NEC and Form 1099-MISC. Now click the option, You can do it here. It will assist you in mapping all your accounts.

The account allocated initially for Nonemployee Compensation for Form 1099-NEC now requires to be allocated to Nonemployee Compensation.

For 1099-NEC, the accounts applicable other than those you utilized for the Nonemployee Compensation now require to be allocated. For this purpose, the most common one is Rent.

Now you will need to run the 1099 Summary report. It will assist you to authenticate all the adjustments you have made. All you need to do is switch between the different types of Form 1099 to see every report.

How to Confirm if the Account Mapping is Done?

If you wish to see if the account mapping is verified for the vendor payments, then the following steps need to be done:

• Press on the Expenses menu.
• Shift to the Vendors option on the top.
• Choose the option, Prepare 1099s. It is situated on the top right.
• In case you are using the 1099 wizard for the first time, you can press the option, Let’s get started. Or else, select the option that says, Continue your 1099s.
• Post that, You will get the option to review your company. Now, you need to authenticate all the details.
• Once it is checked, Press the Next button.

On the next page, you can review the mapping for 1099. In this way, you will be able to authenticate whether the account mapping has been performed perfectly or not in QuickBooks.

How to Find the 1099 List in QuickBooks?

Here are the steps to see the 1099 vendor list in QuickBooks:

1. Navigate to Business Overview. Now choose Reports. Now look for the Vendor Contact List.
2. Choose Customize.
3. In the Columns/Rows, choose Change Columns.
4. Choose the Track 1099 checkbox.
5. Choose Run Report.

In today’s article, we have explained how to map 1099 accounts in your QuickBooks Desktop and QuickBooks Online.

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