Do I Need to Issue 1099s to People?

Have you paid anyone over $600 for a service? Then you probably need to issue them a 1099.

Let’s talk about best practices.

BEFORE you pay someone for service — say editing or supervision services — you should request a W-9 from them. A W-9 will include a contractor’s Name/Company name, Address, SSN/EIN, and the type of entity they are.

This information is needed to provide a 1099-Misc to someone if it is required.

But when do you need to issue a 1099-Misc?

When:

  • You’ve paid someone over $600
  • The payment was to an individual or an entity that is not incorporated (Answering this question is why a W-9 is important.)

 

If either of the above cases is true,  filing a form 1099-Misc is required.

What if I Forgot or Didn’t Know to Ask a Service Provider for a W-9?

Ask them for a W-9 now. Doing so as early as possible will give you a head start since 1099-Misc are due January 31st, 2019. That means you have 30 days from the end of the year to file them.

If you do not want to file a 1099-Misc, we are very happy to do so on your behalf. To file your 1099-Miscs, we will need the name and email address of every service provider you’ve hired, as well as the amount paid to them. If you have their W-9s already, we can process them on your behalf.

TL;DR: If you paid someone over $600, you need to get a W-9 from them. Start collecting W-9 forms ahead of time — they’re due to the IRS by January 31st, 2019.