Filing IRS Form 1099-MISC For Independent Contractors – America’s SBDC

By ComplyRight –

Tax Prep If you work with independent contractors, you have to file a Form 1099-MISC with the IRS at tax time. basically, the 1099-MISC is to contractors what the W-2 is to employees. It covers income amounts, while besides indicating you haven ’ thymine deducted any federal, express or other taxes .
here are answers to park questions about charge requirements :
Q: What is the purpose of the Form 1099-MISC?
A : The form is used to report payments of at least $ 600 to any service provider ( i.e., contractile organ, mercenary, adviser ) who isn ’ t an employee. If the service provided was less than $ 600, you don ’ t need to file a 1099-MISC. One monthly payment of $ 300 wouldn ’ thyroxine command you to file the form, for exercise. But two distinguish $ 300 monthly payments within the same calendar year would.

Q: Do I need to withhold taxes from my contractor’s pay?
A : No. independent contractors are responsible for calculating their own payroll taxes and submitting the sum to the politics quarterly .
Q: What’s the filing process?
A : Filing annual 1099-MISC forms for mugwump contractors is a two-step work. First you distribute forms to your contractors and then you file with the politics .
Q: What information do I need from my contractor?
A : To file the Form 1099-MISC, you ’ ll need a Form W-9 and a Tax Identification Number ( TIN ) for each mugwump contractor. The contractor provides you the Form W-9. You should have every contractor fill out this text file before services are provided. This will ensure you have the information you need to file. If you don ’ t have a W-9 for one of your service providers, request it immediately .
Q: When do I need to file?
A : The deadline to file is January 31, 2019. This is when you must distribute the forms to your contractors. It ’ mho besides the date you must file with the IRS – regardless if you file newspaper forms or do your 1099 filing on-line. however, you don ’ t have to wait until January to file. You can begin filing your 1099 forms in fourth quarter – as long the contractor has completed all study for the calendar year, and you have the want information.

Q: What’s the easiest way to file?
A : electronically filing your 1099-MISC forms eliminates steps, saving you valuable time. Plus, when you electronically file 1099 forms, you have peace of beware knowing the IRS has received your forms because you receive confirmation from the agency .
Q: What should I look for in a provider of online 1099 filing services?
A : First, you want to make sure the company is an IRS-authorized e-file provider. To become an authorized IRS e-file provider, a business must submit an application, meet rigorous eligibility criteria and pass a suitability arrest. In addition, you want to choose a partner with best-in-class security. here are critical security questions you want to ask any likely seller .
Q: What advantages are there with 1099 filing online?
A : electronically filing with a reputable partner, such as, is a one-stop denounce. You merely enter your data, and the forms are sent to your contractors and submitted to the IRS. Plus, as part of the e-file process, compiles the summary data required on form 1096. You don ’ t have to prepare anything for this kind. Click here to learn about extra advantages of 1099 filing on-line.

Q: How do I get started filing my 1099-MISC forms online?
A : Simply visit to set up your spare history. You only pay for your forms when you ’ re fix to file. allows you to print, mail, and electronically file with a bare, safe and secure solution .
ComplyRightAbout ComplyRight: ComplyRight’s mission is to free employers from the burden of tracking and complying with the complex web of federal, state and local employment laws, so they can stay focused on managing and growing their businesses. ComplyRight tracks federal, state and local regulatory activity, creates practical, affordable solutions that streamline essential tasks, and complements these solutions with educational content and actionable guidance. From hiring and training, to time tracking and recordkeeping, to labor law posting and tax information reporting, ComplyRight’s innovative products and services address the real-world challenges employers face every day.

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Category : Finance

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