7 Steps to Prepare and File 1099-MISC Form

November 14, 2018


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.




  • You made payments of $600 or more to a contractor during the tax year.

  • The payments made were for services provided by someone who is not an employee.

  • The payments were made to a business or individual who is not a corporation. 



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).

  • Each 1099 should also include the amount of money paid to the contractor, which is entered in Box 7 under the title “Non-employee compensation.”

  • Lastly, fill in the contact information forms. Repeat this for each contractor you have used.


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! 


SimpliProfit.com |  e info@simpliprofit.com | p 408-809-1001





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