Taxes: 10 Mistakes that Most People Make

How To Get Started With 1099-MISC Forms

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 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 have plans to fill a 1099-MISC form for your independent contractor; you may want to ensure that you have access to all the essential data that is needed in the form. Your QuickBooks are your main source of information. If you are paying these private employers under the “professional fees or “other payments”, you may have to make sure you are keeping all these records.

What is crucial is that you ensure the information you have is correct. You need to have filled out individuals W-9 form, indicating their full names, addresses, 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 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 have all the information that you need; you need to get the 1099-MISC forms. You can order these forms from the IRS or visit their websites. You can also utilize financial software such as the QuickBooks to create and file an accurate 1099s. If you would like to fill 1099s through the internet; you may have to sign up and create an account before you can proceed.

You need not find it hard to fill these forms. What you need to start with is the federal tax ID number, and this could be your SSN or EIN. You then have to fill the details of their contractor, and more importantly, their SSN or EIN. You need to make sure that you enter all the payment records that you made to the contractor.

It is also important that you specify the amount of money that you have withheld. 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.

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