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All About 1099s

 

The 1099-Misc form is used to report non-employee income payments. If you only have regular employees, you’ll be giving them each a W-2 instead.

 

As a small business owner, it’s very likely that you will receive and send a 1099-Misc form at the beginning of the new tax year. These forms are used to show the IRS what you paid any non-employee workers.

 

Much Ado About 1099s

 

If you’re are a contractor, your employers will send you a 1099 as a tax document recording how much money they paid you for that tax year. You will use these documents to provide the IRS with gross amount of money that you made as income for the tax year.

 

As a small business owner, there are several conditions under which you are required by law to send 1099s to your vendors or contractors:

  1. You paid them 600 dollars or more for:
    1. Rent
    2. Non-employee services performed (a contractor)
    3. Other income payments
    4. Attorney payments
    5. Several other specific transactions
  2. You...
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