Can you believe we are already in December? As we approach the last few weeks of 2021, it is amazing just how fast this year has flown by. Some of you have worked throughout the year on reviewing the vendor lists for potential 1099 vendors, while others have saved that tedious task for year-end.
You may have filed 1099 forms last year electronically or printed them off inside of QuickBooks Online, but this year QuickBooks has rolled out a new free feature to help you save some time and double check the potential 1099 vendors. Launching on Nov. 7, it is available to all subscription levels. They will file to the IRS directly from QuickBooks Online, but in some states you may still have to file directly. There is a FAQ section that will help you find out more about your location.
There are two options for filing with the IRS and delivering copies to your contractors:
Option 1: 1099 E-File Service
Intuit will e-file 1099s with the IRS and deliver copies to your contractors online and by mail.
We all love a little price break. Right now, QuickBooks Online is offering early bird discounts for IRS Forms. If you order before January 16th, you can receive your forms at the prices below:
- 1-3 Forms for $12.99
- 4-20 Forms for $2.99 each
- 21-Up Forms are up are free
On January 16th, the prices increase to the following:
- 1-3 Forms for $14.99
- 4-20 Forms for $3.99 each
- 21-Up Forms will still be free
There is no additional cost for Intuit to deliver copies to your contractors online and by mail.
Option 2: Print and Mail 1099s Yourself
You will need special 1099 forms for printing. Intuit sells 1099 kits starting at $58.99 for 10 forms, which includes their made-to-fit envelopes. Don’t forget to include your postage cost when budgeting for 1099 printing.
For any contractor who was paid via Direct Deposit using Core, Premium or Elite Payroll subscription for which they paid the monthly per worker fee, which includes the 1099 fee.
If it is a contractor who was never paid via Direct Deposit, which would not have included the monthly per worker fee, the 1099 would go through the separate 1099 process from QBO and be on the sliding scale depending on volume.
While some of you may already know this exists, for those of you who do not, here's a link to the IRS website to be able to obtain 1,000 forms for free, including W-2s and 1099 MISC Forms along with many others.
Liz Scott is a multi-business entrepreneur working to bring together technology and accountants through her business, Liz Scott Consulting. A member of Intuit Trainer/Writer Network, she authored and taught Master level courses, including Advisory Guides and Consulting Tools for Accountants. In addition to Liz Scott Consulting, she also owns Accounting Lifeline, a firm to serve small businesses with their financial needs. Liz is a co-host of the "Appy Hour," which helps other accountants learn about the different tools and apps for small business needs. Holding a high passion for real estate investment, she owns properties throughout Oklahoma.