 because sometimes they put the reports in different areas so you got the transaction detail report you've got the the contractor balance summary and then you've got the contractor balance detail oftentimes the summary is you know what we would be looking for when we're trying to populate our 1099 so let's open that and then just give a quick discussion on the whole 1099 process so i'm going to close up the hamburger scroll up top we've got all dates so i'll keep that up top actually let's change it to a custom date up top custom date and it's going to go from 010122 tab 12 3122 tab run it to refresh it okay so what are the 1099s in the united states we have the reporting requirement of issuing 1099s quick recap on how this works we have an income tax in the united states therefore the government wants to kind of look over people's shoulders in terms of the income side of things to make sure they're getting paid every business transaction has a payer and a payee the one that's receiving money in any given business transaction on the receiving side of the table possibly has income that the iris would like to tax the person paying then possibly has a business expense that is actually good for the business owner so the iris has leverage on the payer of a business transaction to get them to kind of rat out or tell them about the money that they gave to the payee so they're going to go to the payer side which is going to be us every time we buy something from a vendor and say we want you to give us a 1099 form to the government as well as the vendor but the government is really who wants it here and the government can then double check to see that the recipient of the money has kind of paid their taxes that's the idea now there's some general rules for the 1099 i won't go into them in detail but the general idea would be that the government is mainly concerned with small contractors why because they assume that big companies if the company is a company and not a sole proprietorship a contractor they already have their hooks in them right the government has other ways to make sure that that those companies are reporting their income they're concerned with the little guy that's going to not record their income right so usually you're talking about your 1099 requirements for people that you paid you paid money to vendors you paid them to a corporation that then the government's not usually has worried about them you paid them to a sole proprietorship those are those slippery small guys that the government wants to double check on so the sole proprietors are the ones that you have to kind of worry about then there's a dollar amount which is usually pretty low like six hundred dollars so generally what you have to do is go through all of your vendors look for all those that are non incorporated sole proprietors and then make sure that you're complying with the 1099 requirement or else you're going to get hit by the IRS possibly for not complying with it that's the general idea so what you have to do then to comply with that in order to generate these reports is that every time you add a 1099 that could be subject to issuing I'm sorry every time you add a vendor that may be subject to issuing a 1099 you want to mark the vendor as possibly being subject to a 1099 so that you can run this report now the logistics of filing a 1099 are way easier than say a w2 kind of requirements for an employee so usually you might you might just kind of get your own forms for the 1099 forms and then run a report like this in order to issue your 1099s at the end of the year for small business or you can do it within the quick book system possibly they can help you with to process the forms now notice that the 1099s aren't the same as payroll payroll is way more complex so payroll you would almost certainly want to do payroll within or someone help have something help you out to process the payroll the 1099s are pretty easy compared to payroll so you could kind of process the report and then just do your own 1099s get the forms and do your own 1099s based on this report or you could process the payroll through the or the 1099s through the quick book systems the problem is that this 1099 report would only be accurate and be able to help you comply with your 1099 reporting requirements if as you're making payments throughout the year as you're adding vendors when making payments you're marking off those vendors that are going to be needing a 1099 at the end of the years those usually being the ones that are non incorporated the little guys the little vendors the sole proprietors