As, the end of the year is approaching getting a head start on collecting W-9’s is highly recommended. Your bookkeeper will be sending a list of contractors we recommend sending a W-9 and filling a 1099 at the year’s end.
In January, your bookkeeper will process one final run through your books to determine if any additional contractors need to 1099ed.
What the IRS considers a 1099 Contractor:
If you pay independent contractors, you may have to file Form 1099-MISC, Miscellaneous Income, to report payments for services performed for your trade or business. If the following four conditions are met, you must generally report a payment as nonemployee compensation.
- You made the payment to someone who is not your employee;
- You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
- You made the payment to an individual, partnership, estate, or in some cases, a corporation; and
- You made payments to the payee of at least $600 during the year.