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1099 Guidelines

Hey there, business owner! Ready to send out your 1099’s?

We didn’t think so…

To help you out, here at C3Worx, we’ve prepared some guidelines for you as to what you need to prepare 1099s (it’s not just subcontractors any more!).

What is a 1099 misc? Typically, a 1099 misc is for a supplier that is not a corporation. The best practice for designating a 1099 vendor is to have all suppliers fill out and submit a Form W-9,Request for Taxpayer Identification Number and Certification, prior to paying them. You can then determine whether they should receive a 1099

Who gets a 1099 misc? The following is a list of characteristics that determine a supplier as a 1099 vendor (this is a partial list):]

  • Professional service fees – Examples are Accountant, training & development, attorney
  • Commissions paid to non-employees
  • Fees paid to independent contractors.
  • Taxable fringe benefits for non-employees
  • Director’s fees
  • Our rule of thumb, when in doubt, get a W9 and send the 1099

Step 1: Compile 1099/vendor list:

Review your vendor list in QB. Some may already be designated as 1099 vendors. Some are not. If you are not sure and/or don’t have complete information for that vendor, you will need to get a W9 Form from them. This is also a good time to update your vendor list – making vendors inactive speeds up the process for the following year.

Step 2: Decide who will prepare

If you would like our help in preparing 1099s, give us a call by December 15th to get the process started. If you are having someone else create your 1099s, touch base with them to make sure you are working within their timeline.

Step 3: Be mindful of the tax timeline (Courtesy of Alex Krasnomowitz, CPA)

Copy A Form W-2 , Wage and Tax Statement, with Form W-3, Transmittal of Wage and Tax Statement, paper or electronically filed are due January 31st. In prior years the employer could file with SSA on February 28th, that has been changed.
Form 1099 Copy A, Miscellaneous Income, with Form 1096, Annual Summary and Transmittal of US Information Returns, paper or electronically filed are due the January 31st. In prior years the employer could file with the IRS on February 28th, that has been changed.
YIKES, a bit daunting!

panic

DON’T PANIC

We can help

Call us today or email us. We are happy to provide guidance, support and the actual filing of your 1099s this year.

Hurry you’ll probably have prep work to do as well!