1099 year-end reporting
1099 year-end reporting consists of printing and mailing 1099 forms to contractors who meet the $600 threshold and reporting this information to the IRS by January 31st each year.
This date is subject to change, so be sure to visit http://irs.gov each year to confirm the due date. Similar to a W2 form, or Wage and Tax Statement, for an employee that includes the amount paid in wages for a calendar year, the 1099 form includes the amount you have paid to a contractor within the calendar year.
This form is used by independent contractors to report their earnings for the year on their tax returns. Failure to provide this information to the IRS and the contractors could result in fines and penalties.
When you are ready to generate 1099 forms, the process is very simple. First, you review the accuracy of your information and the basic contact information for each contractor. Then, you review the payments that have been flagged as 1099 payments. If this...