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Before You Create 1099 Forms

At the end of the calendar year, you may need to print and send a Form 1099 for each vendor that you paid. You will also print a Form 1096, which is a summary of all 1099s you have issued. See the IRS instructions for when a 1099 is required to be sent.

Before you create and print your year-end Form 1099s for your vendors, you should follow these four steps to confirm everything is correct:

Step 1:

If you have the accounting software:  View your vendor list under Accounting > Your Company > Vendors. Confirm that the “Create 1099” column is set to “Yes” for everyone who needs a 1099. To change this setting, click the Vendor name and edit the Vendor Info screen. Check or uncheck the “Create 1099 at Year End?” box, and click Save.

If you have the payroll software without accounting: View your contractor list under Payroll > 1099 Contractors > Contractor List. All contractors are set to “Yes” in the Create 1099 column for you to pay them with the payroll software. If this needs to be changed, click the contractor name,  then “Edit.” Change their 1099 Type to “Non 1099 Payment” and click “Save.”  This will prevent a 1099 from being created.

Step 2:

Run the Missing 1099 Information Report to confirm all vendors have their tax ID number, which is required to print their 1099. You cannot print a 1099 for a vendor with missing information. Find the report under Reports > 1099 Contractor Reports > Missing 1099 Information. Select the correct year and click “Run Report.”

Step 3:

Run the 1099 Summary Report to confirm the amounts are correct. Find the report under Reports > 1099 Contractor Reports > 1099/1096 Summary.

Step 4:

If this is your first time printing the forms, you will be prompted to set the printing options for the 1099 and 1096. Go to Settings > 1099 Contractor Settings > 1099/1096 Print Layout. For details on how to align the forms for printing, see Print Set-Up For 1099/1096 Forms.

After you have completed these four steps, you can now create Forms 1099 and 1096 and then print them on IRS-approved 1099-MISC and 1096 forms or 1099-NEC and 1096 forms. You can order these supplies from the IRS website or at 1-800-TAX-FORMS.

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