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. Such a form is an essential as almost every business out there will have to document their miscellaneous expenses.
It is important that you remember to choose the non-employees that received $600 or more in that particular year. These independent contractors are people who may be self-employed and are hired to offer services occasionally, such as janitorial services and web developers.
If you know that you are about to fill a 1099-MISC form for your independent contractor, you need to make sure that you gather all the required information that will be needed. Your QuickBooks are your main source of 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. You will need this information when filing the 1099-MISC form.
It is also a good idea to check out the contractor’s information afresh. 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 sure you have all you need to fill the 1099-MISC, your next step is to acquire the forms themselves. You can order these forms from the IRS or visit their websites. Alternatively, you can utilize financial software such as the QuickBooks to create a properly filled 1099. If you would like to fill 1099s through the internet; you may have to sign up and create an account before you can proceed.
It should not be a hard thing to start filling them out. All you need to do is to start with your federal tax ID number – it could be your SSN or EIN. Add your contractor’s information, including their SSN or EIN. You need to ensure that you fill all the payment information that you made to their accounts.
You should ensure that you indicate the amount that you have withheld. Be sure to include their information. You need to check through the information that you have provided also. Make sure they are error-free.