Quick 1099 Question
I just took over as treasurer of a small community organization and found out that 1099s have not been sent out. One person did two types of work for us. One type of work was certain services provided under a contract with the individual. The other type of work was other services for which there was no contract and we were sent a company invoice. Do I send a 1099 for both types of work, or only for the work done under the contract?
Thank you!!
I'm not an accountant so keep that in mind, but I'm pretty sure you send one 1099 for all their work. Whether or not a contract was involved is irrelevant. I think as long as you paid $600 or more for the year to that person you're supposed to send a 1099 for all of that work. Don't hold me to the $600, but I think that's the number.
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Yes, send a 1099 for all payments to this individual. It may be late, but 1099s are better sent sooner than later... I've seen 1009s sent out in June and July, and I'm sure the recipients are not happy!
Small Business CPA
"A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."
As said above, you need to send a 1099 for all the work the individual did if their payroll was over $600 for the year. It does not matter the arrangements you guys made for payment or work, but it does matter that you report all of the money given to the individual. Otherwise, you will have to do a correction.
Understanding payroll is a major focus for small businesses
Yes, you do still need to send them the 1099's, along with a copy to the IRS. But, you don't need to send them if they are a corporation. You will need a Form W9 from them to determine this.
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