Yes, you can create W-2s in QuickBooks Online (QBO) instead of a 1099. Depending on how you have set up your payroll tax, your W-2s will be filed automatically, or you will have to e-file them through QuickBooks.
To create a W-2, you will first need to add the contractor as an employee. If you choose to manage the payment and filing process with the agencies yourself, you will need to e-file your W-2s using the steps below. Please note that you cannot print the employer copies from QuickBooks, but you can print copies to send to your employees.
Select Annual Forms, then W-2 Copies A & D(employer).
Select Continue.
If prompted, tell us whether or not one or more employees were active participants in a retirement plan during the tax year.
On the Employer Copies: Form W-2 page, select View to open Acrobat Reader.
Review and print Copy D (Employer's copy) for your records.
Select Submit to authorize us to file Copy A of Form W-2 electronically for you.
After we have processed your W-2 filing, we will send you a confirmation email. You can also check the status of your filing on the status page using the following steps: