As we near the end of the year, it will be essential to organize your data through the end of the year so that filing 1099 information in January is a breeze! Here are some things to keep in mind:
All contractors should be sent a 1099 if they were paid $600 or more. It’s best practice to get a W-9 from the contractor
No taxes are taken out of 1099 filings
If you rent a space, your landlord should be sent a 1099
If you paid for legal fees, that law firm should be sent a 1099
1099 filings typically require a vendor name, address, EIN and amount paid
There are penalties for missing the 1/31 deadline so be prompt. Most software companies also offer lowered pricing for filing at the beginning of the month
If filing more than 250 1099s, you must file electronically
