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Intuit, the company that makes QuickBooks, made a big announcement late last year.  QuickBooks will no longer be selling their desktop versions of Pro, Premier Mac or Enhanced Payroll to new customers after July 31, 2024.

 Intuit (the maker of QuickBooks) has announced that the desktop versions of QuickBooks-Pro, Premier, Premier Nonprofit, and Mac-will be changed to a subscription-based product for 2022.

No matter how small your nonprofit or church is, there are calendar year-end requirements for NPOs. Here is a list of the required filings during the first quarter of the year. Post includes a free 2021 Calendar of filing dates for nonprofits and churches.

Along with all the other changes we have dealt with in 2020, the IRS has also changed how organizations report the money paid to independent contractors, or as they prefer to label it, Non-employee Compensation.

In past years, if your organization paid a person for services who was NOT an employee, you may have needed to file a 1099-Misc for the total amount given over the year. The 1099-Misc listed royalties, rents, and other miscellaneous items, but its most common use was for payments to independent contractors.

Starting in 2020, the IRS now requires payments to independent contractors are shown on a new form 1099-NEC (non-employee compensation) instead of the 1099-MISC (miscellaneous).

Table of Contents

What is Non-employee Compensation?

How do I determine who are Independent Contractors?

Contractor or Employee?

How do I know which contractors need to receive Form 1099 this year?

How do I fill out Form 1099-NEC?

When do I use Form 1099-MISC?

What do I do to my chart of accounts for the 1099 changes?

What else needs to be sent with the 1099s?

When are the 1099s due?

How do I file the 1099

It is time to go back to school (hopefully!). If your school receives scholarships from a governmental unit for specific children, you can track these in QuickBooks. The examples I’ll be showing are using the Premier version, but the same concepts work for QuickBooks Online. Assumptions: Let’s start by reviewing the assumptions. For this example, I assume: the parents apply directly to the government or grantor for the scholarship money is paid directly to the school payments are received by semester from the grantor if a student drops out, the scholarship money is prorated and given back to the grantor...