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 recommended to every business out there as there are many types of payments that require 1099-MISC.
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. To get more info, visit Generate a form 1099-MISC. These non-employers are not your regular employers; they are hired to service providers such as web developers and 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. Your QuickBooks is an important accessory that will help you fill the 1099-MISC form without a hassle. If you usually pay your contractors under professional fees or other payments, you need to be sure to keep all these documents.
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. These pieces of information are required when filling out your 1099-MISC form.
It is also important that you proofread the contractors' details again. You see, at times, contractors update their information and you need to factor in that when processing the 1099 forms. If your contractor choose to provide you incorrect information deliberately or have omitted useful information, then you have the option of withholding 28 percent of their pay and send this 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 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 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. You may have to start with your federal tax ID number; and this could be your SSN or EIN. Add your contractor's information, including their SSN or EIN. Read more from How to generate a form 1099-MISC. You need to ensure that you fill all the payment information that you made to their accounts.
If you have withheld some payments, you need to ensure that you indicate that. Lastly, make sure you fill the contact details. You need to check through the information that you have provided also. Make sure they are error-free. Learn more from https://www.encyclopedia.com/articles/when-should-you-issue-a-1099/.