The 1099-MISC are critical forms that are utilized by businesses to file report payments to what IRS considers the non-employees. These forms are straightforward when filling, and you should not experience any challenge when creating one of your contractors. If you are a business operator, you are likely to be making several payments that are considered miscellaneous.
It is worth to remember that you are focusing on filling a 1099-MISC form all the independent contractors whom you paid $600 and above that year. These independent contractors are usually hired to offer services occasionally and can be web developers or even janitorial services.
If you are planning to fill a 1099-MISC for your contractor; it is fundamental that you collect the relevant data that will come handy during the process. Be sure to make use of your QuickBooks – they will offer you relevant information. If you pay your independent employees under the professional fees or other payments, you need to be certain to keep all these documents well.
What is crucial is that you ensure the information you have is correct. You need to have filled out Form W-9 for each contractor that includes names, address and social security number-SSN or employer identification number- EIN. The information in the W-9 will be used when filling contractor’s 1099-MISC form.
You also need to scan through the contractors’ information again. You see, at times, contractors update their information and you need to factor in that when processing the 1099 forms. If you realize that your contractor has chosen to altered crucial information or have omitted some, you have the choice of withholding 28 percent of their total pay and send them to the IRS.
When you are ready to fill the 1099-MISC forms; you need to acquire the forms themselves. You can order for these forms from the IRS departments or fill your 1099 online. Alternatively, you can utilize financial software such as the QuickBooks to create a properly filled 1099. If you prefer doing it online; you may have to sign up and create an account before you can fill in the 1099 forms.
You should not have any difficulty in filling out these forms. What you need to start with is the federal tax ID number, and this could be your SSN or EIN. Add your contractor’s information, including their SSN or EIN. You need to make sure that you enter all the payment records that you made to the contractor.
If you have withheld some payments, you need to ensure that you indicate that. Be sure to include their information. It is worthwhile that you go through the information that you have given. Ensure they are accurate.
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