Automated Tracking, E-Filing, and Real-Time Accuracy Checks Help You Stay Compliant and Save Time
Tax Season Just Got Easier for Business Owners
Tax season is one of the most stressful times of the year, but QuickBooks Online’s latest updates are here to change that. Managing 1099s has traditionally been a manual, time-consuming process that involves tracking payments, verifying information, and submitting forms on time. This year, QuickBooks Online introduces new features that simplify and automate every step of the 1099 filing process.
Whether you’re a small business owner or a growing company with multiple contractors, these tools are designed to save you time, reduce human error, and make compliance stress-free.
What’s New in QuickBooks Online?
1. Automated 1099 Tracking in QBO
No more manual spreadsheets or guesswork. QuickBooks Online automatically tracks contractor payments throughout the year. As long as you have a vendor profile created for each contractor you work with, QuickBooks will flag them for a 1099 whenever they cross the $600 payment threshold set by the IRS. You’ll always know which contractors need a form, helping you avoid errors and missed deadlines.
How it works:
Automatically identifies contractors who qualify for 1099s.
Tracks payments made through ACH, credit cards, and checks.
Sends you notifications so you never miss a filing deadline.
What to Watch Out For:
Data Accuracy: If contractor information (like tax ID or address) is incorrect, QuickBooks may not be able to file successfully.
Limited Customization: If you have unique filing needs, QuickBooks’s one-size-fits-all approach may not meet every business requirement.
2. How to e-file 1099 forms with the IRS directly from QuickBooks Online
Forget about printing, mailing, or using third-party tools to stay compliant with 1099 requirements in 2025. QuickBooks Online now allows you to e-file 1099s directly from within the platform. With just a few clicks, your forms are sent to the IRS, and copies are distributed to your contractors.
Why it matters:
No manual form printing required.
Submit 1099s directly to the IRS and automatically notify contractors.
Track the filing status to ensure compliance and peace of mind.
What to Watch Out For:
Additional Fees: E-filing through QuickBooks may incur an additional charge per form, so it’s important to budget for this cost.
Submission Deadlines: While QuickBooks files electronically, waiting until the last minute could still result in a missed deadline if technical issues arise.
3. Real-Time Accuracy Checks
One of the most common issues with 1099 filing is missing or incorrect contractor information. QuickBooks Online’s latest update automatically checks for missing tax IDs, incorrect addresses, or unpaid balances before you file. This pre-filing review reduces the risk of rejections and penalties.
How it works:
Alerts you to missing contractor information before filing.
Ensures payment amounts and thresholds are correct.
Reduces the likelihood of IRS rejections and penalties.
What to Watch Out For:
Data Review Required: QuickBooks can only flag missing or incorrect information if you’ve entered the data. It’s still up to you to verify its accuracy.
IRS Limitations: While QuickBooks checks for errors, it’s still possible for IRS updates or rule changes to cause issues.
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