1099s Simplified

BY ON December 4, 2017

It’s that time of year again…

Okay, let’s break this down: If you paid an independent contractor or non-incorporated company $600 or more during the calendar year, you should issue a 1099 (When it comes to attorneys, you should issue a 1099 to them even if they are incorporated).

Your 1099 includes any payments for labor or equipment/materials if billed on the same invoice. However, if materials are billed separately, you can leave out that payment from your 1099 total.

Why file 1099s?

According to the IRS, you must file and send 1099 forms to independent contractors so they, in turn, can report income from your company. If you fail to issue and file 1099s, expect to be subjected to penalties.

What kind of deadlines are there for 1099 filing? What about the penalties?

1099s must be filed, either electronically or via paper, by January 31, ...