SIX IMPORTANT TIPS FOR GETTING YOUR 1099s RIGHT
- You must send a 1099 to any subcontractor you have paid $600 or more to in a calendar year.
- 1099s are due to the recipients by January 31st. If the 31st falls on a Saturday or Sunday, 1099s are due the first business day following the 31st.
- You should have a W9 form on file for each of your subcontractors. The form can be downloaded here.
- A 1099 can be “bounced back” from the IRS if it contains mistakes. The most common mistake is the incorrect spelling of a name, or an incorrect social security number.
- Make sure forms are issued to the *exact* name which appears on the person’s social security card. In other words, don’t issue a 1099 to “Joe” if Joseph is the name on file with the Social Security Administration. Double check social security numbers and make sure mailing addresses are current too!
- Your 1099s must be submitted along with a 1096 form to the IRS by February 28th. The 1096 form is a summary form that lists the total amount of 1099s you are submitting, plus the total dollar amount of all of your 1099s combined.
1099 forms are expensive, and you can usually only purchase them in bulk. Good Cents Bookkeeping, Inc. has had a great experience using http://filetaxes.com. They are cheap, provide digital copies of all forms prepared, and send everything directly to the IRS on your behalf. Now THAT makes Good Cents!
If you want more information on 1099’s and W9’s click here to read about what you need to do to make sure that you have everything prepared the right way.
Good Cents Bookkeeping is always there to help you make sure that your books are up to date and ready to hand over to your accountant.
Feel free to contact us about this anytime.