The end of the year is coming, and you’re to do’s are growing. This can be overwhelming and daunting as we embrace the financial year- end close for 2018. Let me help you focus on one topic - 1099-Misc Reporting.
Who is required to file a 1099?
The 1099-Misc form is used to report payments made to contractors who earn $600 or more in a tax year.
What is the deadline?
You are required to issue and essentially mail out all your Form 1099-MISC to your vendors by January 31. Then you must send in the transmittal Form 1096 to the IRS before February 28. For more information, consult with your accountant, or check IRS.
7 Steps to prepare and file the 1099-MISC Forms
1. W9 Form properly filled out by your contractor
This form is used to gather information about your contractor to determine if they should receive a 1099-MISC at the end of the tax year.
Download a blank copy of W9 Form
View W9 Instructions
2. Track Payments Made to Independent Contractors
You should confirm your contractor’s payments are $600 or more for the calendar year.
3. Obtain Your 1099-MISC Forms
You can order the 1099-MISC form from the IRS or if you use QuickBooks, you can order them from Intuit.
4. Complete 1099-MISC Form
It’s time to start filling them out. Start with your Federal Tax ID number, which could be your Social Security Number or EIN (Tax ID). Then add in the contractor’s information, which includes their Social Security Number or EIN (Tax ID).
5. Send out the 1099-MISC Form
You must mail each 1099 Copy B to the Contractor/Recipient no later than January 31. Failure to meet this deadline can lead to IRS penalty fees.
6. Mail From 1096 to the IRS
IRS Form 1096 summarizes the information from the 1099-MISC you’re sending this year. If you file through snail mail, you must mail Form 1096 and Copy A of each Form 1099 to the IRS no later than February 28.
7. Keep a Record for Your Filings
Be sure to keep Copy C for your own records.
Preparing and filing 1099-MISC can be very time-consuming and overwhelming. Use this guide to navigate the process. If you are using a Financial software like QuickBooks you can automate the process and save yourself some time and frustration. Please reach out to us and we can help you prepare and file your 1099-MISC.
Schedule a Consultation Today!
Interested in learning how to prepare and file 1099-MISC forms. Contact us today for your free business consultation!
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