It’s 1099 season again! This means it’s time to prepare and send 1099s to all of your qualifying vendors.
Who are you required to send a 1099?
First, the general rule is that business owners must issue a Form 1099-MISC to each person to whom you have paid at least $600 in rents, services (including parts and materials), prizes and awards, or other income payments. This only applies to payments you have made for business purposes. You don’t need to issue 1099s for payments made for personal purposes.
Second, you don’t need to send 1099s to corporations, so you don’t need to send one to anyone with “Inc.” or “Corp.” at the end of their name. You DO need to send a 1099 to any attorneys who have provided services for you.
What information do you need to prepare a 1099?
In order to submit a 1099, you must provide the legal name, address, and federal tax identification number (SSN or EIN) of the payee. The best way to get this information is to have your vendor provide you with a completed form W-9. Here’s a link to a blank copy of a W-9 for your convenience. As you gather your completed W9s, we’ve gone the extra mile for you and prepared an easy spreadsheet you can fill out with all of your contractors’ information – just click here and select the file name to download (you’ll need Excel, Google Sheets, or a similar software to prepare).
Allen Street Consulting can prepare your 1099s!
We understand that the preparation of 1099s can be time consuming and confusing, and we are happy to help take the load off your shoulders. Our fees for 1099 preparation are a flat fee of $75 for the first ten 1099s, plus $2 per each additional 1099.
If you’d like Allen Street Consulting to prepare your 1099s, please contact Christina or your Allen Street bookkeeper to get the process started and receive your 1099 information spreadsheet. 1099s are due to your vendors and the IRS by January 31, so the sooner we get the information the better – ideally before Wednesday, January 16. Due to the tight deadline, please also be aware that any information or corrections submitted after Wednesday, January 23 will incur an additional rush processing fee of $75.
Lastly, because these spreadsheets will contain sensitive information such as social security numbers, please avoid emailing them! Spreadsheets may be uploaded directly to a secure Dropbox link by clicking here or faxed to us at 716 770-1564.
If you have any more questions about preparing or submitting 1099s, please contact Christina at firstname.lastname@example.org.