Who Should Receive a 1099?
• Any vendor or contractor to whom you paid $600 or more in proceeds over the course of the calendar year
What Information Do I Need?
• In the interest of best practice, each vendor/contractor you intend to pay – even if you don’t believe they will meet the minimum $600 threshold amount – should complete a Form W-9 prior to you issuing payment to them.
• The W-9 requests information such as Name, Business Name, EIN/SSN, and Address – all standard information you will need when filing 1099s for your business.
• Getting completed W-9s ahead of time will assist you when it comes time to file your 1099s – you won’t have to chase anyone down, which may cause late filing.
Where Do I File?
• 1099s can be mailed to the IRS or e-filed through a payroll provider or software such as QuickBooks.
• New for 2023! The mandatory e-file threshold will be 10, effective for returns required to be filed on or after January 1, 2024.
• Santora CPA Group is here to help! Our Small Business Services Department provides all services regarding 1099s – from analyzing transactions for compliance to preparing the forms for filing with the IRS.
When Are Filings Due?
• Section 6071(c) requires you to file Form 1099-NEC on or before January 31st. If you file on paper, file Form 1099-MISC by February 28th, or if you file electronically, file by March 31st.
• Most 1099s are due to the recipients by January 31st (or the next business day if the 31st falls on a Saturday or Sunday).
Why Should I File?
• If a business fails to issue a form by the designated 1099 deadline, the business could pay penalties varying from $50-$270 per form, depending on how far past the deadline the business is issuing the forms.
If you have any questions related to 1099s or other tax matters, please reach out to us. Our knowledgeable staff can assist you with all of your business needs. Santora CPA Group is Right, By Your Side!