If you are a business and you pay contract labor, you must issue the contractor a Form 1099-NEC if: The amount you paid to the contractor is $600 or more for the year, and The contractor isn’t taxed as a corporation. If you pay with a credit or debit card, or via a third-party processor […]
More and more brokerages and making 1099s available ONLY online, meaning the client has to think to go out and retrieve the 1099s. So this time of year is a good time to make a note to verify what brokerage or investment accounts you have, find your login, and make a note to log in at tax time to check for 1099s.
Today I want to write about Form W-9 and when it’s used. My discussion will focus on the most-common usage of Form W-9, which is to collect information from contractors so a Form 1099 can be prepared. I will not be getting into other uses of the W-9. Who Should Fill Out a W-9 I […]
In tax terminology, an independent contractor is someone who performs services for a business but who is not an employee of the business.
I’m still not 100% confident in what the answer to this question is.
In the tax world, the term “1099” refers to a series of reporting forms issued to recipients of certain types of income.
So why does the IRS care so much about employee vs. contractor? Two reasons. One is the penalties they can collect. The other reason is they usually collect more taxes when someone is treated as an employee, because a contractor can take business deductions which directly reduce taxable income.
Over the last 5 months, I’ve written about 1099s. Since the posts are scattered over nearly 5 months, here are links to each post.
This is an excerpt from a presentation I give to business owners and HR professionals about 1099s. —– There are two deadlines to keep track of, including one that is a major change starting in 2017 (for filing 2016 forms). In the past, the deadlines were: All forms in the 1099 series must be issued […]
What EIN should go on a W-9 for a single-member LLC?