1099 refers to a form that IRS requires all businesses and corporations to send to freelancers and independent contractors whose services were engaged last calendar year. Typically, these would be people who get paid on a per job basis like artists, web designers, legal consultants etc. There are many variants of 1099, but the most common is 1099-MISC. Here we show you how to track 1099-MISC vendors in Zoho Books and deliver and file 1099s online.
Please follow the instructions below to track 1099-MISC vendors in Zoho Books.
Request W-9 from your vendor
Before you start tracking 1099-MISC vendors in Zoho Books, you need to request your vendors to fill in a W-9 form and have them send it across so as to accurately record your vendor's information in your accounting software. Here is a sample W-9 form and the corresponding details of the vendor in Zoho Books.
Enter Vendor Information in Zoho Books
Once you receive a W-9 from your vendor,
- Go to contacts screen and click on 'New Vendor' button on the right sidebar.
- Add Tax ID as a custom field and check the box "Make this available for new customers"
- Enter the information from W-9 here.
- Click Save
Here is a sample W-9 and corresponding record in Zoho Books:
Right now there is no direct way to export your 1099-MISC vendor information. You need to follow the below instructions:
Go to Contacts tab and click on export contacts on the right side bar. Open the contacts data in "Zoho Sheet" or export it as CSV file.
- Filter the data to select the "Custom Label Field" as "Tax ID"
To know how much you have paid last year to your 1099-MISC vendors, you need to run the following reports:
Expenses By Vendor
- Run this report to see the various expenses paid via cash or credit to each vendor. The below screen shot tells you where the report is located:
- Export all paid Bills
- Run this report to see the various accounts payable invoices entered for each vendor. Filter it for just paid bills before you export this report. The below screen shot tells you where the report is located:
Export the chart of accounts.
- You need to export your chart of accounts. (See below). Add a column in the spreadsheet obtained as a result and label it "1099 Box No". Map the account name to corresponding box in 1099.
Prepare the final 1099 spreadsheet for export
Merge all the spreadsheets obtained in the aforementioned steps and prepare one sheet with the following columns:
||Federal ID type (1=SSN, 2=EIN, 3=ITIN, 4=ATIN)
|State (2 letters)
||Acc't No. (optional)
|Office Code (optional)
||Box 1 Rents
|Box 2 Royalties
||Box 3 Other Income
|Box 4 Fed Income Tax withheld
||Box 5 Fishing Boat Proceeds
|Box 6 Medical & Health Care
||Box 7 Nonemployee Compensation
|Box 8 Substitute Payments
||Box 9 Payer made direct Sales of $5000 or more
|Box 10 Crop Insurance Proceeds
||Box 13 Excess Golden Parachute
|Box 14 Gross Amount Paid to an Attorney
||Box 15a. Section 409A deferrals
|Box 15b Section 409A Income
||Box 16a State Tax withheld
|Box 16b Local Tax Withheld
||Box 17 State No.
|Box 18a State Income
||Box 18b Local Income
Recipient Federal ID No
You can use the services of any online 1099 filing and delivering vendors that have been approved by the IRS.
The 1099 spreadsheet you had prepared above should ease the process of getting your vendor information into a filing provider.See below for the link to the IRS website that lists the various
providers approved by the IRS for delivering and filing 1099. I would recommend to choose a provider that in addition to filing your returns online can deliver it online to your vendors making the entire process