Need to Send Out 1099s?

Did you hire a vendor or contractor to perform a service for you?
This could include hiring a lawyer, accountant, cleaner, plumber, landscaper or landlord, where you did not get a tangible item.

If you paid them $600 or more during the calendar year, you NEED to send them a 1099

What is a 1099?
A 1099 is a tax document sent by you to a vendor/contractor and the IRS telling them how much you paid.
It is like a W-2 for a person that is not an employee.

What is the difference between a 1099 and a 1096?

The 1099 is the Form sent to the Contractor by Jan 31st.

The 1096 is a summary Form sent to the IRS, along with copies of the 1099s. It is due to the IRS by Jan 31^st but you can extend to Feb 28^th.

Things to Know:

No Corps: Corporations do not get 1099s. LLCs and sole proprietors do.

Independent Contractor: a person or entity contracted to perform work or provide services to another entity as a non-employee.

Inventory: 1099s are not needed for inventory purchases.

TIPS:
When in doubt… send one out!

If you think someone needs a 1099, odds are they do.

If you are unsure, it is best to send one as precaution rather than having to amend a 1096 and face penalties.

What QBO needs:

• A legible W-9 form, containing a SSN or FEIN
• The total amount paid to the individual for that year