New Automated 1099 Preparation available in QuickBooks Online

In a recent edition of Intuit's 'In The Know' webinar series, they recapped the latest demonstration on the 1099 enhancements available in QuickBooks Online Payroll. These updates have been designed to significantly streamline the preparation and filing of 1099s, enabling users to complete the process faster and more efficiently.

Tiffany Dolan, who authored the recent product update, rejoined the show to walk us through the new enhancements. With QuickBooks' new Automated 1099 solution, accountants can simplify and streamline their 1099 filing process like never before. This solution is fully integrated into QuickBooks Online, allowing users to generate 1099 forms for their firm and clients with efficiency.

How it Works:

1. Automated 1099 Preparation: QuickBooks can now scan your books to identify the correct recipients, review relevant payments, and map everything to the appropriate 1099 forms. This method allows you to review the forms with full editing control, saving you considerable time.

2. Manual 1099 Preparation: For those who prefer the traditional method, QuickBooks still offers manual preparation with added convenience through combined federal and state filings.

Here is the highlights of the differences between the two methods:

One key to note is the pricing. The automated enhancements will cost from $14.99/form, while the manual method form filings are included with many services like Payroll, Contractor Payments, or QB Bill pay services.

During the demonstration, Tiffany highlighted the ease of the automated process:

• Identifies Who Needs a 1099: QuickBooks scans transactions to identify vendors or contractors that meet the 1099 requirements, automatically excluding large corporations and transactions below the $600 threshold. Users have the flexibility to add or exclude entities as needed.

• Automates Form Completion: The solution populates 1099 forms directly from existing records, ensuring accuracy and saving time. Users can review and adjust the forms before filing.

• E-file and Mail to Recipients: Once approved, forms are e-filed with federal and state agencies, and recipients receive both digital and mailed copies.

• Track and Manage: Users can track their filing status and make unlimited corrections if necessary.

Tiffany demonstrated the new automated version, emphasizing the importance of verifying business details to avoid IRS rejection. QuickBooks handles the heavy lifting by scanning payments, filtering out credit card transactions, and generating your 1099 forms.

Here's a quick rundown of the process:

1. Verify your business details.
2. Let QuickBooks scan your transactions.
3. Review the generated forms.
4. Make necessary edits and ensure all information is accurate.

For the first time, QuickBooks includes state filings in addition to federal filings. Tiffany explained that states like Illinois only require federal 1099s, whereas California needs a state-specific form. QuickBooks flags and assists with direct filing for states not participating in the federal/state combined program.

Once everything is set, users can pay and file their forms directly from QuickBooks, streamlining the entire process.

Why Choose QuickBooks' Automated 1099 Solution?

• Accuracy: Automated form population reduces the risk of errors.
• Compliance: Federal and state filing, and unlimited corrections.
• Efficiency: Save time with automated identification of who needs a 1099 and which payments to include.
• Convenience: Seamless integration with QuickBooks makes the process smooth and straightforward.
• Control: Stay in control by reviewing exactly which payments have been included and excluded, and make adjustments as needed.

Tiffany wrapped up the demo by highlighting the ease and efficiency of the new 1099 preparation process. We appreciate her detailed walkthrough and encourage you to explore these enhancements in QuickBooks Online Payroll.

For a quick summary of the Automated 1099s, enhancements are available for all accountants and clients with transactions in QuickBooks and U.S.-based 1099 vendors and contractors. W-9 collection is already live, with 1099 filing going live on January 1, 2025.

For more product updates and demos, check out Intuit's In The Know Hub, and be sure to register for our monthly live webinars. Until next time, happy filing!