QuickBooks has updated their payroll system to allow for Employee Social Security Deferrals as outlines in the Presidential Memorandum issued August 8, 2020. As a reminder, this is an optional deferral employers can offer to their employees.

Employers will be responsible to pay back the deferred amounts by April 30, 2021, whether or not they are able to withhold the social security taxes from their employees’ paychecks from January 1, 2021 – April 30, 2021. This means that if your employee quits or is let go, it is up to you to reclaim the deferred Social Security Tax from them and remit it to the IRS.

For step by step instructions, see: https://quickbooks.intuit.com/learn-support/en-us/social-security-taxes/how-to-set-up-employee-social-security-deferral-in-quickbooks/00/676670

What are the changes to 1099 filings for the 2020 tax year?
New for 2020, nonemployee compensation has been removed from 1099-MISC and given its own form, the 1099-NEC. Amounts formerly reported in Box 7 of 1099-MISC in 2019 and prior years should now be reported in Box 1 of 1099-NEC.
The 1099-MISC also has a new payment type called nonqualified deferred compensation, for deferred compensation that does not meet section 409A requirements.

What is the 1099-NEC?
The 1099-NEC form is a new form for reporting nonemployee compensation. If you’ve reported nonemployee compensation in 1099-MISC Box 7 in previous years, you will now need to use the 1099-NEC form for tax year 2020.

What is the difference between 1099-NEC and 1099-MISC?
The 1099-NEC is specifically for reporting nonemployee compensation, whereas many other types of compensation can be reported on the 1099-MISC.

There are two quick options for calculating in QuickBooks:

1. On the top bar, click File, click Use Calculator. A calculator window will pop up for you.

2. In the number fields of any transaction, you can do simple math using these symbols (+, -, /, *). Press the = symbol to get the result.

QuickBooks has many types of reporting templates that will fit most financial reporting needs and can be printed or saved as PDFs. Another option is to download the reports in to excel. If you are an Excel wiz, this is a great option. Sometimes the bank or your CPA may request the financials in Excel format.

The excel button will be at the top of the report. Click, download, and save.

Desktop Tip: Quick and easy way to search for transactions.

Click ‘Edit’ tab at the top Left and click ‘Find’. You can see the filter gives you a bunch of categories to choose from. Most commonly used is the ‘Amount’ that is illustrated below.

QBO Tip: Advanced Search Option to find transactions.

You click on the magnifying glass than click on the ‘Advanced Search’. Your options are endless – the first filter you can select ‘All Transactions’, ‘Check’, ‘Invoice’, ‘Deposit’, ‘Payment’, etc. The second filter can be ‘Amount’, ‘Invoice’, ‘Memo Description’, etc.

What you’ll get: