The 1099-MISC are critical forms that are utilized by businesses to file report payments to what IRS considers the non-employees. These forms are straightforward when filling, and you should not experience any challenge when creating one of your contractors. Such a form is recommended to every business out there as there are many types of payments that require 1099-MISC.
It is important that you remember to choose the non-employees that received $600 or more in that particular year. These non-employers are not your regular employers; they are hired to service providers such as web developers and janitorial services.
If you have plans to fill a 1099-MISC form for your independent contractor; you may want to ensure that you have access to all the essential data that is needed in the form. Your QuickBooks is an important accessory that will help you fill the 1099-MISC form without a hassle. If you pay your independent employees under the professional fees or other payments, you need to be certain to keep all these documents well.
What is crucial is that you ensure the information you have is correct. You need to have filled out individuals W-9 form, indicating their full names, addresses, social security number -SSN or employer identification number, EIN. The information in the W-9 will be used when filling contractor’s 1099-MISC form.
It is also a good idea to check out the contractor’s information afresh. You would never know, perhaps there are some details that have been altered, and you should know about that when processing your 1099 forms. If you realize that your contractor has chosen to altered crucial information or have omitted some, you have the choice of withholding 28 percent of their total pay and send them to the IRS.
When you are ready to fill the 1099-MISC forms; you need to acquire the forms themselves. You have the options of filling your 1099-MISC forms online or ordering for the manual forms from the IRS department. You can also make use of great financial software such as the QuickBooks to generate and file an accurate 1099-MISC. If you choose to do it online, you need to sign in or log in – (if you have an account already), to their and start the process.
It should not be a hard thing to start filling them out. All you need to do is to start with your federal tax ID number – it could be your SSN or EIN. You then have to fill the details of their contractor, and more importantly, their SSN or EIN. You need to ensure that you fill all the payment information that you made to their accounts.
You should ensure that you indicate the amount that you have withheld. Lastly, make sure you fill the contact details. It is worthwhile that you go through the information that you have given. You need to make sure that they are free from errors.