The 1099-MISC are crucial forms that are used by majority of the employers to file report payments to contractors that are recognized by IRS as non-employers. These forms are easy to fill, and you need not have any difficulty when dealing with them, especially when you have filled them before. Such a form is an essential as almost every business out there will have to document their miscellaneous expenses.
You need to ensure that you file a 1099-MISC form for all the non-employees that received $600 and above in that 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 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 is an important accessory that will help you fill the 1099-MISC form without a hassle. For more info, click form 1099-MISC. 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 more, you need to ensure that you get accurate information on your contractors. You should have filled out Form W-9 for every contractor, including their full names, addresses, the 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 a good idea to check out the contractor’s information afresh. You would not tell; there are times where individuals update their information, and you need to know about that when filling your 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. Visit How to generate a form 1099-MISC to learn more. 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 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 add your independent employee’s information as well as their SSN or EIN. You need to include all the money you paid 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. It is worthwhile that you go through the information that you have given. You need to make sure that they are free from errors. Learn more from https://www.encyclopedia.com/articles/when-should-you-issue-a-1099/.