What is a 1099?
A 1099 form reports non-employment income that a taxpayer earns throughout the year. Businesses are required to issue 1099s to any payee (other than corporations) who received at least $600 in non-employment income in a year. There are many types of 1099 forms since there are various ways to earn non-employment income (18 types). Fortunately, most businesses need only worry about issuing a few of these different forms. Commonly issued forms for small and mid-size business include:
- Form 1099-NEC – used to report non-employee compensation (ex. Independent Contractors)
- Form 1099-MISC – used to report miscellaneous income (ex. Rent, Payments to Attorneys, Royalties)
*Note, small business may need to issue other types of 1099 forms.
How to be prepared for the 1099 year-end deadline?
The deadline to mail 1099s to taxpayers is usually January 31st. These simple steps can help your business be prepared for this deadline:
Before paying 1099 vendors, request a completed and signed Form W-9. The links for downloading Form W-9 is: https://www.irs.gov/pub/irs-pdf/fw9.pdf
Keep track of payments made to contractors and other 1099 vendors.
For more information on 1099 forms please visit the IRS website.
How can we help?
Salt & Main Accounting offers services to help your business keep on top of tracking W-9 request throughout the year. In addition, we offer year-end 1099 services. For more information on these services please contact us at Contact@SaltAndMainAccounting.com or at (970) 880-1022.
