How to Correct Missing Contractors or Wrong Amounts in QuickBooks for 1099s?
You know the time when preparing for tax is critical when you ensure your financial records are valid, especially about filing 1099 forms for contractors. QuickBooks is a great tool for streamlining the process, but you may have missed some contractors or incurred the wrong amounts on 1099s , which can become a headache down the road. Here is a guide on how to redress these issues. What is the 1099 Form? The 1099 form is used by the Internal Revenue Service when a person has paid anyone more than $600 within a tax year. This form has to be issued before January 31st of every year. Before talking about corrections, take a moment to review the 1099 form. You use the 1099-NEC to report nonemployee compensation paid to individuals who are mostly independent contractors. Any time you pay a contractor $600 or more in a year, you must send a copy of the 1099 to them. Common Issues with 1099s in QuickBooks 1. Missing Contractors: When working with 1099 reports, sometimes contractors will be mi...