As we approach the end of the year, it’s time to start thinking about 1099 filings. The January 31st deadline is fast approaching, and preparing early can save you time and stress. Here’s what you need to know to ensure your business stays compliant.
Do You Need to Issue a 1099?
Certain payments made during the year require issuing a 1099. Here’s a quick breakdown:
- 1099-NEC: Reports non-employee compensation (e.g., payments to contractors).
- 1099-MISC: Covers other types of payments, including rents, royalties, and attorney fees.
- 1099-INT and 1099-DIV: Report interest and dividend payments, respectively, if applicable.
Who Should Receive a 1099?
If your business paid $600 or more in 2024 to individuals, single-member LLCs, partnerships, or attorneys for services, you’ll need to issue a 1099-NEC. Be sure to:
- Use a W-9 form to verify the recipient’s name, address, and EIN/SSN.
- Exclude payments made via credit cards, PayPal, or Venmo.
Steps to Take
- Collect Information: Gather payee details, including name, address, EIN/SSN, and total payment amount.
- Use Templates: For those issuing 15 or more 1099s, templates can simplify the process.
- Meet the Deadlines: Submit complete information to your accountant early. Late or incomplete submissions may delay filings.
If you have any questions or need assistance, reach out to us today. Don’t wait until the last minute—let’s get your 1099s ready now!