Key Takeaways
- The IRS has developed the Form 1099 series, which is a group of forms used to report payments to individuals who performed services for your organization.
- Although each Form 1099 has its own specific reporting requirements, there are several filing requirements that apply uniformly to each of these forms.
- Simple mistakes on Form 1099 can be time-consuming and costly.
The Guide to Help You Make Sense of Form 1099 Requirements
Running a business never comes with a shortage of to-do items, especially when it comes to year-end planning. As you work through the close of this year and the beginning of the new one, it's important to think through your employee-employer relationship and how you treat payments to those individuals.
We've developed a comprehensive e-book that includes everything you need to understand Form 1099 requirements for a successful year-end. The e-book provides actionable insight and advice to help you navigate:
- How to complete and correct the various forms
- Common mistakes on 1099 forms (which can result in costly penalties)
- Dates and deadlines to remember
How does a 1099 differ from a W-2?
The relationship between the organization and the person performing services for your organization is incredibly important. If the individual is considered an employee, you are required to withhold payroll tax. However, if the person performing the services is an independent contractor, you do not need to withhold payroll tax.
When it comes to year-end planning forms, your employees receive Form W-2, while your independent contractors receive Form 1099-NEC.
Who gets a 1099 Tax Form?
If your company hires independent contractors throughout the year, then the 1099 form should be top of mind.