1099s: Tips & Tricks

1099s are due January 31st – have yours been sent?

If you have, have you sent them to all vendors and service providers who need one?  You might think that you just need to send 1099s to contract employees who do direct work for your company.  However, there are likely many more 1099s you should be sending.  Unless organized as a corporation, most service providers you have paid from your business should receive a 1099.  Your landlord needs a 1099 to report rent and your attorney needs one, too.  If you have paid interest to someone who is not a financial institution, you may need to provide them with a 1099.  Your cleaning person, yep, they need one, too!

In addition to making sure you’re sending out all of the appropriate 1099s, make sure you’re reporting the correct amounts, too.  If you’ve paid a provider by credit or debit card, exclude that amount from your 1099 (that will be reported by the credit card company).  Paying by PayPal, you can exclude that, too.

There are many software programs that can help you in filing your 1099s.  Intuit has a service or Yearli by Greatland is another one and the pricing is better if you have just a few.  Your CPA can likely help you, too.

Make sure you mail out your 1099s AND file electronically with the IRS by January 31st!

 

 

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