Who receives a 1099?

Anyone who was paid $600 or more for services on behalf of the business as a non-employment income should receive a 1099. However, there are many types of 1099s for different situations. Also, there are many exceptions to the $600 rule, meaning you may receive a 1099 even if you were paid less than $600 in non-employment income during the tax year. Know the IRS common laws.

How do I know?

Determine what type of relationship you have with a person or company to decide if you need to issue a 1099 to document the relationship, best way to do that is to request a W-9.

There are several factors, it is critical that business owners correctly determine whether the individuals or businesses providing services are in need of a 1099. If a business fails to issue a form by the January 31 deadline, the penalty varies, depending on how long past the deadline the business issues the form. Best practice going forward: DO NOT remit payment without first obtaining a W-9 Form.

For W-9 and 1099 services for Current Clients:

$125/ hour with a 1-hour minimum (includes up to 5 1099’s) and $5.00 for each additional 1099/e-filed, for those that need to be mailed via USPS will incur an additional $2/form. If a W-9 needs to be requested for taxpayer identification service is $6/submission.

$75 additional rush fee for approved Vendor information received after January 10th.

For W-9 and 1099 services for Non-Current Clients:

$125/hour with a 2-hour minimum (includes up to 5 1099’s) and $6.00 for each additional 1099/e-filed, for those that need to be mailed via USPS will incur an additional $2/form. If a W-9 needs to be requested for taxpayer identification service is $8/submission.

$100 additional rush fee for approved Vendor information received after January 10^th.