How to File IRS 1099-MISC forms with QuickBooks without social security numbers

1099 Tips for QuickBooks Users

1099 form and Intuit QuickBooks logo
Intuit Inc.

A business is required to issue 1099-MISC forms to individuals and businesses that earn more than $600 for goods and services in a tax year. If you do not issue 1099-MISC forms, then you will be subject to penalties for noncompliance. You can learn more about the filing requirements for the 1099-MISC form in the articles “Everything You Wanted to Know About the 1099-MISC Form”. If you are preparing 1099-MISC forms for individuals who work for you as independent contractors, then you will have to obtain certain personal information from them, including their names, addresses, and social security numbers.

Then, you can use QuickBooks to file your 1099-MISC forms with just a few simple steps.

Practical Advice: The requirement to file 1099-MISC forms for individuals and business that you pay $600 or more in a calendar year is subject to change periodically. You should check the 1099-MISC filing requirements at www.irs.gov or consult with your tax professional annually to ensure that this threshold has not changed since the time of this publication. By checking with these sources, you can ensure that you are in compliance with the 1099 tax reporting requirements.

What information do I need from an individual to prepare a 1099-MISC?  

Before you prepare 1099s with QuickBooks, you will need to obtain all the information from individuals who work for you as an independent contractor to enter into QuickBooks. You will need to obtain a W-9, which is a form titled “Request for Taxpayer Identification Number and Certification”.

You will want to have contractors complete a W-9 prior to starting with you so that you can be sure to enter this information into QuickBooks.

Do I have to issue a 1099-MISC form to a contractor if I do not have their Social Security Number?

Yes, you are required to complete the 1099-MISC form whether or not you obtained their Social Security Number.

You may subject to a penalty for filing an incomplete 1099 with the IRS, but you are still required to file the 1099 even though it is incomplete.

How do I file a 1099-MISC with QuickBooks without an EIN?

You can file a 1099-MISC form for any contractor or business without an EIN by using the QuickBook’s 1099 Wizard.  You can find detailed step-by-step instructions for how to use the 1099 Wizard here – but you will find the 1099 wizard under the employee vendor tab in QuickBooks. Then, you will select the file 1099s from the drop down. This selection will bring up the 1099 wizard. You can follow the prompts to check the accuracy of the 1099s, where you will be asked whether you want to e-file or file by paper. You will need to file paper copies of your IRS Form 1099s if you are missing any information on the form.

Practical Advice: You do not have to file a 1096 transmittal form, which is a summary of the information you filed on each of the individual 1099s, if you e-file your 1099s. However, you are required to file the 1096 when you file your 1099-MISC forms by paper so be sure to print and send this form in if you have to file your 1099s in paper form with the IRS. You may have forgotten about this form if you have e-filing your 1099s for a while but you will need to file the 1099 transmittal form if you are filing 1099s in paper format.

Conclusion

You must file 1099-MISC forms for individuals and business if they are paid at least $600 or more in a year. While you may not have all the information to prepare the form, you still should file the form, or you will be subject to penalties for non-compliance with this tax reporting requirement. As good business practice dictates, you will want to put policies and procedures in place to ensure that you get this information, such as having them complete W-9s prior to doing business with them. You can then sure you have all the information to fulfill your tax reporting obligations regarding the 1099-MISC forms.