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January 30, 2024
Question

If I need to file a 1099-misc for a w2 employee, due to her winning trip, how do I do that? I don't see the option for this.

  • January 30, 2024
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1 reply

January 30, 2024

It's great to see you here in the Community forum, angelac2. I'd be delighted to share some insights about how filing the 1099-MISC form with your W2 employee works in QuickBooks Online (QBO).

 

Before anything else, I highly recommend reaching out to your accountant or financial tax advisor to confirm if you're required by the IRS to file the 1099-MISC. You can also directly reach out to the IRS to verify if you need to file the forms. You can go through this link to reach out to them: Contact IRS.

 

If it's confirmed that you have to file 1099 forms, recreate your W2 employee as a contractor with a middle name to avoid a duplicate name error message inside the QBO program. You'll also have to record or recreate the contractor payments as checks or bill payments.

 

Once done, you can follow the steps below to file their 1099-MISC:

 

  1. Go to Payroll, and select Contractors.
  2. Click Prepare 1099s. Make sure your company name, email, address, and tax ID are correct and match what's found on tax notices or letters from the IRS.
  3. Tap Confirm info and get started. Then, Pick Select accounts and choose or confirm the accounts used for your 1099 expenses or payments, then select Add. 
  4. Next to each account added, select the 1099-MISC boxes that represent the type of payments made to your contractors this year. Select NextChoose your boxes carefully. Most businesses will choose Nonemployee compensation, Box 1 1099-NEC, but check with your accountant if you think you might have made other types of payments.
  5. On the Tracked for 1099 tab, place a checkmark next to each contractor who should get a 1099. Make sure ‌the contractors' personal info and email addresses are correct. Hit Edit ✎ to make any changes.
  6. Review the Reportable total amount for each contractor selected then click Next.
  7. Select Preview to view each 1099 and review the amount in each box. Pick Continue to 1099-MISCs to view your 1099-MISC forms. Tap Next.
  8. Select Continue to E-File to e-file your 1099s. Or select I’ll print and mail to print and mail the forms yourself.

 

For more details about the e-filing process, please refer to this article: Create and file 1099s with QuickBooks Online.

 

Additionally, you can read through this article to learn what's new and changed with 1099s and W-2s: Understand the IRS regulations for filing 1099s and W-2s.

 

Feel free to reply anytime with further questions or clarifications about the 1099 forms in QBO. I'm more than happy to lend a helping hand. Keep safe!