Using 1099 Forms
The internal revenue service (IRS) requires people who have hired contractors and paid them more than $600 for a year to prepare a 1099 form. This figure should include money for materials and business-related payments. One can be able to get this form by going online and ordering a page from the IRS. Through an office supplies store, one can be able to buy a 1099 form.
1099 forms need to compatible with the IRS scanners. This is why one must make sure that the 1099 forms that they obtain will be scannable by the IRS. When buying the forms, one can get several forms that can last for a while. When you fill a 1099 form you’ll be asked to fill in your federal tax ID which should be your employer identification number or your personal social security number. People who do not have the federal tax ID need to find out how to get it in order to complete the 1099 forms because submission cannot be carried out without the number.
When filling a 1099 form, one has to put in the social security number of a contract worker. The IRS will expect that a person who has hired a contractor will withhold 28% from the contractor’s fee if they do not have a social security number and that the amount that is withheld will be submitted to the IRS. Another way to check out a social security number of a contract worker is through the w-9 form.
The person who is filing in the 1099 form must include the total amount of money that has been paid to a contract worker throughout the year. In a 1099 form, one is required to fill in the contact information of an independent contract worker and a company. Three copies are necessary when one is filling in the 1099 forms. When filling the 1099 forms one should have two copies that they will need to submit. For proper record keeping, one should keep the third copy in a safe place. It is important to fill the 1099 form with one’s state. Filling a 1099 form is easy when you know what to fill in. Mailing is one of the ways to submit a 1099 form.
One can give the contract worker the completed 1099 form so that they can submit it to the IRS. People who do not fill in the 1099 forms can get penalties from the IRS. There are deadlines for submitting the 1099 forms that one must adhere to if they want to avoid penalties. By visiting the IRS pages online, one can find additional information to help them fill the 1099 forms. For people who have additional questions they can call the IRS call center for help.