QuickBooks Online adds 1099 features
Intuit has added two new features to 1099 preparation in QuickBooks Online (QBO). Starting in January, all QBO users have access to an updated data entry system and can send contractor tax forms directly to the IRS electronically.
The new data entry feature allows a small business to send their contractors an invite to enter their tax information on their own from within QuickBooks. The contractor can then more securely share their information, which is then added to the QuickBooks account. Contractors can also update their data to reflect changes to addresses, and these changes will be updated in the small business’s QuickBooks account. Contractors can also share this information with other small businesses that hire them without re-entering the information.
Small business QuickBooks users can now send 1099s to the IRS and contractors electronically from within the software, which reduces the need for paper forms and mailing envelopes.
Thirty percent of U.S. small businesses pay at least one contractor annually, according to Intuit. Moving much of the tax workflow of this relationship online saves time and money.
“When small businesses make the decision to hire contractors, the hardest decision should be who to hire, not how to onboard and manage workers, especially at tax time,” stated Cassie Divine, vice president of the small business group at Intuit. “By adding an easy and effortless way for small businesses to distribute 1099s to contractors through QuickBooks Online, we are solving problems facing both small businesses and contractors. We will continue to bolster our solutions to solve problems for both contractors as well as small businesses through QuickBooks Online and QuickBooks Self-Employed.”