The end of the year is rapidly approaching. If you are wondering if it is necessary to issue 1099’s, then let us help you determine that. We have listed some common questions and answers related to 1099’s.
- What is a 1099?
This is a form issued to a non-employee with information pertaining to how much you paid that person or business
- Why are there so many 1099’s?
1099’s are used for many different payments including retirement (1099-R), interest (1099-INT), dividends (1099-DIV), non-employee compensation (1099-NEC) and miscellaneous (1099-MISC)
- Who gets a 1099?
Anyone that receives compensation from you or your business that is not a normal employee and is not already on your payroll
- When would you issue a 1099?
Anytime you paid someone over $600 you would issue them a 1099
If you believe you need to issue a 1099 there are a few things to know. First, you will want the individual or business to fill out a W-9. This form will give you all the information you need to fill out a 1099. It is a good idea to get this as soon as the vendor, contractor, or freelancer starts working for you. If you have questions or need assistance on filling 1099’s, Senter CPA would be happy to help. There are also options on the internet to electronically complete these forms.
https://www.tax1099.com/ is a good option if you think you can file these forms on your own.
