Setting up and Filing 1099-NEC and 1099-Misc in QuickBooks Online

This video is for setting up and filing the 1099-NEC and 1099-Misc for QuickBooks Online Users (QBO) Are you ready for the new 1099-NEC? ➡️ What are the changes for the 2020 tax year?​ New for 2020, nonemployee compensation has been removed from 1099-MISC and given its own form, the 1099-NEC. Amounts formerly reported in Box 7 of 1099-MISC in 2019 and prior years should now be reported in Box 1 of 1099-NEC. The 1099-MISC also has a new payment type called nonqualified deferred compensation, for deferred compensation that does not meet section 409A requirements. ➡️ What is the difference between 1099-NEC and 1099-MISC?​ The 1099-NEC is specifically for reporting nonemployee compensation, whereas many other types of compensation can be reported on the 1099-MISC. ➡️ Reminder: There needs to be at least a $600 threshold to get a 1099. Third party payments such as credit card or PayPal are excluded from the 1099. QB Desktop Users 1099-NEC training:    • Setting up and Filing 1099-NEC and 1099-Mi...   W9 Form: https://www.irs.gov/pub/irs-pdf/fw9.pdf IRS 1099-Misc Publication: https://www.irs.gov/pub/irs-pdf/f1099... Let me know if you're ready to process your 1099's now? ➡️ 1099s in QuickBooks Online ➡️ Under Expenses Vendors “Prepare 1099s” ➡️ Under Payroll Contractors “Prepare 1099s” ➡️ Make Sure to Checkmark Your Vendors Go to “Expenses” “Vendors” Open the Vendor Click on “Edit” Checkmark “Track payments for 1099” Enter “Business ID No. / Social Security No.” Enter “Address” Click “Save” ➡️ Prepare 1099s Click “Continue your 1099s” ➡️ 1. Company Name & Address Tax ID Phone Number Click “Next” ➡️ 2. Accounts – Mapping **Checkmark the boxes that applies Non – Employee Compensation (Expense Category you have) Rents (Pick rent expense) Other Payment Types Royalties Other Income Fishing Boat Proceeds Medical Payments Direct Sales Substitute payments in lieu of dividends or interest Crop Insurance Proceeds Gross proceeds paid to an attorney Excess Golden Parachute Federal Tax Federal Tax Withheld – 1099-MISC Federal Tax Withheld – 1099-NEC Click “Next” ➡️ 3. Contractors **Gives you details on who qualifies Click “Save & Finish” and then come back Add From Vendor List Check/Uncheck if they qualify or not Click “Next” to continue ➡️ 4. Review ** It’s going to tell you where it belongs (1099-NEC or 1099-MISC) Drop-down 1099 contractors that meet threshold 1099 contractors below threshold Contractors not marked for 1099 Print Information Sheet If you want to print the information sheet to look at Click “Print and Finish Later” and then come back Or Click “Finish Preparing 1099s” ➡️ 5. File Click “E-File for me” Click “Print and mail” **If you want to print it. Who gets Forms 1099-MISC and NEC? Copy A: IRS Copy 1: State tax department (if applicable) Copy B: Contractor / Vendor Copy 2: Contractor / Vendor Copy C: Your records For more details visit: https://www.irs.gov/instructions/i109... *Timestamps:* 0:00 - Intro 0:22 - Changes for 2020 tax year 0:59 - Difference between 1099-NEC & 1099- MISC 1:42 - Inside QuickBooks Online 3:46 - Prepare 1099's 4:30 - Review Company Info (Company) 4:49 - Mapping Accounts (Accounts) 6:42 - Who qualifies? (Contractors) 7:15 - Review 8:10 - Print Sheet 8:25 - $600 threshold 8:56 - E-File 9:07 - Print form 12:14 - IRS Website (1099) 13:47 - Free Workshop /Final Thoughts Ready to Customize QuickBooks for your Business and feel Confident at your next tax appointment? ➡️ Join me for my QB Workshop: https://CandusKampfer.com/workshop Subscribe for more QuickBooks tips ➡️ https://www.youtube.com/c/CandusKampf... I’d love to connect with you 👇 Instagram:   / candus.kampfer   Facebook:   / canduskampfer   CandusKampfer.com: https://canduskampfer.com/ TikTok:   / canduskampfer   Pinterest:   / canduskampfer   #CandusKampfer