Preparing W2 and 1099 Forms
The IRS requires employers to send out tax related forms to employees and contractors in the January following each tax year. FCC employees receive W2's and some staff may be contractors who receive 1099's. FCC uses ADP Payroll exclusively to pay employees. Some staff who are contract vendors may be paid through ADP, but the majority of individuals are paid directly out of QuickBooks.
ADP Forms Filing and Handling
Part of the ADP Payroll service is to generate W2's and 1099's for those individuals compensated through ADP. A few weeks into January of each calendar year, ADP will electronically file with the IRS and send a package to FCC with W2's and 1099's which must then be mailed to the individuals.
QuickBooks Forms Filing and Handling
For tax 2025, QuickBooks provided the option of paying for an autofilled forms service or preparing 1099s manually. Having previously ordered and received official forms through Amazon, FCC opted for the arduous process of preparing 1099s manually. In future the intention is to pay QuickBooks for the autofilled forms service which will prepare the forms and efile with the IRS. The step by step procedure for the autofilled forms service will likely differ from year to year due to QuickBooks on-going updates so details are not provided here. Rather you should follow the links provided on the QuickBooks 1099 Filing Details page.
In summary, the process entails the following:
QuickBooks will attempt to identify individuals for whom 1099s must be issued based on current IRS regulations.
You will have an opportunity to expand on the list of GL accounts typically used to expense 1099 compensation.
You will have an opportunity to review payments made to the individuals. You can flag any payment as non-eligible for a 1099s that does not constitute compensation such as a payment made to reimburse expenses.
Each individual is required to have filled out a W9 form with the information required. QuickBooks will flag individuals for whom information is missing.
You will have the opportunity to review the forms to be produced as part of the process.