Form 1099-MISC is a form that is used by most employers to file report payments to independent contractors. These forms are straightforward when filling, and you should not experience any challenge when creating one of your contractors. If you are a business operator, you are likely to be making several payments that are considered miscellaneous.
It is important that you remember to choose the non-employees that received $600 or more in that particular year. These independent contractors are usually hired to offer services occasionally and can be web developers or even 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. Be sure to make use of your QuickBooks – they will offer you relevant 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.
When it comes to filling the 1099-MISC firm, it is crucial that you check that you have accurate data of your independent employer. You need to have filled out individuals W-9 form, indicating their full names, addresses, social security number -SSN or employer identification number, EIN. You will need this information when filing the 1099-MISC form.
You also need to scan through the contractors’ information again. You would never know, perhaps there are some details that have been altered, and you should know about that when processing your 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 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 choose to do it online, you need to sign in or log in – (if you have an account already), to their and start the process.
You should not have any difficulty in filling out 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 ensure that you fill all the payment information that you made to their accounts.
It is also important that you specify the amount of money that you have withheld. Lastly, make sure you fill the contact details. It is worthwhile that you go through the information that you have given. Make sure they are error-free.