Remember: W-2s and 1099s Are Due in January

Remember: W-2s and 1099s Are Due in January

https://youtu.be/MuBt9iDn4vo Do you have employees? Then don’t forget to file W-2s in January! Do you hire contractors? Then remember that 1099s are due in January! What’s a W-2? You might already know what a W-2 is, but let’s start with a quick refresher: a W-2 is the document that you, the employer, use to report each employee’s earnings to the Federal Government as well as the employee. It shows gross earnings less deductible items like medical premiums, payroll taxes like social security, and other important annual items. A W-2 is not to be confused with a W-4, which is that…
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Do I Need to Issue 1099s to People?

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…
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I paid for someone to do my website – What do I do?

I paid for someone to do my website – What do I do?

How do I know if I need to report it? Alright if they aren’t an employee, and they are an independent contractor, yes you do have to report it if you meet certain thresholds. Was the amount over $600? Was the payment to an individual or an entity that is not incorporated? If you answered yes to the two questions about, then you need to file a 1099-Misc for the payment. To do that you need info from the person you pay. Usually, you collect this info before you pay the person via a W-9, but if you didn't you…
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