Hello Everyone. This is Ufuoma Ogaga,
CEO of Goshen Bookkeeping and Consulting.
Today, I will talk about the new ...
1099-NEC form and show you some updates you need ...
to make in your QuickBooks Online file.
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Here is an example of the 2019 1099-MISC form.
You will notice box 7 is listed as nonemployee ...
compensation in this form. As of 2020,
the IRS changed this form to now split out nonemployee ...
compensation into its own separate form.
And, it moved everything else such ...
as rents and other income into a brand new 1099-MISC form.
Here is the new 2020 1099-NEC form.
You will notice that what we used call box 7 nonemployee ...
compensation is now called box 1 nonemployee ...
compensation in this particular brand-new form.
Going forward, you will be required to file 2 ...
types of 1099 forms in January of each year.
So, all your nonemployee ...
compensation will be recorded in the 1099-NEC ...
form. And all your rents and other ...
1099 miscellaneous income will go on the brand new ...
2020 1099-Misc form that you are seeing here.
In addition to this and to ensure your reports are ...
accurate, you will need to update the ...
mapping of your expense accounts to the correct boxes ...
in the 1099 wizard in QuickBooks Online.
If this is your first time using the 1099 wizard in ...
QuickBooks Online, the steps I am about show ...
you are still applicable to you. If you have previously ...
completed the 1099 wizard step before,
maybe in 2019, you must redo your ...
mappings in QuickBooks Online since the boxes have changed.
To get to the 1099 mapping screen,
move your cursor to the payroll tab and select ...
contractors. Click on Prepare 1099s to ...
enter the mapping wizard screen.
You have the option to QuickBooks Online to file ...
your 1099s or using an external filing system.
I am only completing enough of the steps in this wizard for ...
the correct vendor data to show in the 1099 transaction detail report.
If this is your first time completing this process,
your button will probably say get started.
If this is not your first time completing this process,
you will see this continue your 1099 button.
The system will ask you to complete your company ...
information. The information listed here ...
must match legal name and address as it appears on your ...
tax return. For nonprofit organization,
this has to match your IRS determination letter or Form ...
990. For small business owners,
this will match your Schedule C tax return and for ...
Corporations this will match your Form 1120 tax return.
So enter the missing information and click next.
In this step 2, this is where you will map all ...
of the expense accounts to the correct 1099 form boxes.
A brand new thing that Intuit added when they updated ...
the 1099 wizard for 2020, is the that they added the ...
1099 form names right next to each box.
I love this because it helps you not make the mistake of ...
mapping a nonemployee compensation expense ...
account to the wrong 1099 form.
So, I will spend time here ...
selecting all of my nonemployee compensation ...
accounts, mapping them to the right ...
box. And,
then also mapping my rent account to the brand new ...
1099-MISC form. So,
just keep watching as I go through this process.
So I have done the mapping. I recommend reviewing ...
everything to make sure you have captured all of the 1099 ...
accounts, then click next.
Step 3 shows you all of the service providers that meet ...
the W-9 form requirements so that you can update their ...
contact information. You can continue the rest of ...
the steps in this wizard if you are filing your 1099s in ...
QuickBooks Online. For the sake this video,
I will stop here and click on save and finish later.
Now, that I have completed the ...
process of mapping the expense accounts to the ...
correct 1099 boxes, I will run the 1099 transaction ...
detail report to verify my data.
To run the report, click on the Reports tab,
under the standard tab, search for 1099 transaction ...
detail report. Here is the transaction detail ...
report. You can export this report to ...
Excel or PDF or email it to your Accountant.
I recommend reviewing this report and following the 1099 ...
instructions to make sure all your vendor payments that ...
are not credit cards are showing under each vendor.
If you forgot to include an expense account,
you can always go back to the 1099 wizard screen to ...
update your mapping.
One thing I just noticed in this 1099 transaction detail ...
report is the name of the 1099 form is listed as a ...
separate column. This makes it easier to ...
differentiate which data goes on which form especially if ...
you are using an external filing system to prepare and ...
efile your 1099s. So,
I really love this.
Watch the next video to learn how to track the W-9 form ...
status of your vendors and contractors using custom ...
fields in QuickBooks Online Advanced.
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