How to Map 1099 Accounts in QuickBooks Desktop

Table of Content

1. How to Map 1099 Accounts in QuickBooks Desktop

To link or setup the Vendors:

Click Vendors, then Vendor Center to set up the vendor. Select the desired vendor from the list on the left. Click the Tax Settings tab in the Edit Vendor browser. Make sure the Vendor qualified for the 1099 box is reviewed, then click OK.

To link the accounts, do the following:

Then go to Vendors > Print/E-file 1099s > 1099 Wizard. Continue to the Map vendor payment accounts page after clicking Get Started. Click the drop-down arrow in the 1099 box column for each account you used to pay 1099 vendors to choose the box on Form 1099 where these payment amounts should appear.

QuickBooks Online

If you paid 1099-MISC and 1099-NEC contractors to the same account, you’d need to change your chart of accounts to make sure that each form has its version. Then, either make a journal entry or update current payments to appear in the newly created 1099-NEC or 1099-MISC accounts. Follow the steps for your QuickBooks online:

Step 1: Create a 1099 Transaction Detail Report

Determine the sums charged and the accounts to which they were paid.

Select Reports.
Look for a report called 1099 Transaction Detail Report.
Run the report and double-check that the sums for the 1099-NEC and 1099-MISC are in the correct accounts. When you go through the 1099 form, you’ll be able to map the accounts. If you need more details, you can use the 1099 Contractor Balance Detail, or 1099 Contractor Balance Summary reports.

Step 2: Create a new user account

To monitor the separate payments, create a new account in your Chart of Accounts.

Select Chart of Accounts from the Settings menu.
To make a new account, click New.
Pick the type of account from the Account Type dropdown menu: Expense, Other Expense, or COGS.
Pick the information form that best suits the types of transactions you want to report from the Detail Type dropdown. Find out more about different information styles.
Make a name for your new account. (1099-NEC Federal Income Tax Withheld, for example) You may add a name that suits using the information under the detail type.
Include a summary.
Add a description.
- Pick Is sub-account and then enter the parent account if you’re adding a sub-account. Learn more about parent accounts and subaccounts if you need assistance.
- Pick Other if you began your account on a different date. Enter the date you want to start tracking money in the store in QuickBooks in the Select a date area. Enter the account balance for the date you select in the Account Balance area.
Choose Save and Exit.
For each new account to be registered on the 1099-NEC or 1099-MISC, repeat the procedure.

Step 3: Transfer the payments to the new account

You have the option of either creating a journal entry to transfer amounts to the newly created 1099-NEC or 1099-MISC accounts or editing current prices to the latest versions.

Make a new journal entry.

Select New +, then Journal Entry from the drop-down menu.
To make your journal entry, fill in the fields.
Choose between saving and creating a new file and saving and closing a file.
Rep this procedure for each payment that needs to be moved.

Make changes to current contractor payments.

Choose Expenses.
Filter the transactions to find the contractor payments that need to be corrected.
You can either click View/Edit to enter the transaction or select the Category dropdown to choose a new account after the payment has been found.

Step 4: Verify the changes.

To confirm the changes to your accounts, create a 1099 Transaction Detail Report.

Select Reports.
Look for a report called 1099 Transaction Detail Report.
You should be able to see the changes.

After you’ve completed these measures, you’re ready to start filing your 1099-MISC and 1099-NEC forms.

QuickBooks Desktop

Step 1: Make a backup of your QuickBooks Desktop file:

Make a backup of your QuickBooks Desktop file before you begin modifying it. If you need to make changes to forms from previous years, you’ll need to restore this backup to access the documents and data before 2020. When you map the new boxes on the new conditions, the data from previous years will no longer be correct.

Step 2: Create a 1099 Summary report:

Determine the sums charged and the accounts to which they were paid.

Pick Vendors & Payables from the Reports menu.
Select between 1099 Summary and 1099 Detail.

Please note that reports will revert to the previous calendar year, so make sure the date range next to Dates at the top of the information is accurate.

To identify the vendors, use the 1099 Summary and the 1099 Detail to identify the transactions. Examine the totals below to see what sums might need to be transferred. You’ll need to tweak your Chart of Accounts to ensure accounts are set up expressly for each form if you need to file both the 1099-MISC and 1099-NEC.

Please note that past reports will be updated and will no longer reflect prior year filings if you make changes to your accounts or payments. Before making any changes, you may want to print these reports for your records.

Step 3: Make a new account.

To monitor the separate payments, create a new account in your Chart of Accounts.

Select Chart of Accounts from the Lists menu.
To build a new account, go to the Account dropdown menu and select New.
Pick Expense, Other Expense, or COGS as the account form, then click Continue.
Fill in the Account Name, as well as the Description, Note, and Tax-line Mapping fields.
Save & Close is the option to choose.
For each new account to be registered on the 1099-NEC or 1099-MISC, repeat the procedure.

Step 4: Transfer the transactions to the new account.

You have the option of either creating a journal entry to transfer amounts to the newly created 1099-NEC or 1099-MISC accounts or editing current payments to the new versions.

Make a new journal entry.

Select Make General Journal Entries from the Company menu.
To make your journal entry, fill in the fields. When you’re done, double-check that your debits and credits are identical.
If you need to make more entries, choose Save & Close or Save & New.
Rep this procedure for each payment that needs to be moved.

Make changes to current contractor payments.

Vendors, then Vendor Center are the options.
Select the vendor and look for the transactions you want to alter.
To make changes, double-click the transaction to open it.
Click Save & Close after you’ve made your changes.
This procedure should be repeated for each payment that needs to be changed.

Step 5: Create a 1099 Summary report

Run a 1099 Summary or 1099 Detail report to ensure that the adjustments on the 1099-NEC and 1099-MISC represent the correct amounts on each account.

Pick Vendors & Payables from the Reports menu.
Select between 1099 Summary and 1099 Detail.

Please note that reports will revert to the previous calendar year, so make sure the date range next to Dates at the top of the information is accurate.

You should be able to see the effects of your improvements.
After you’ve completed these measures, you’re ready to start filing your 1099-MISC and 1099-NEC forms.

Conclusion

In conclusion, QuickBooks Desktop software helps you manage the different organisations and manage the same finances. I hope that this blog helps you understand these few things and was worth your time.