With the end of the year rapidly approaching, we should begin preparing for our 1099 and 1096 filings.
At the beginning of the year, we don’t know how much we will pay an outside contractor, consultant or a professional for services. Therefore, the government requires that we ask for and collect a W9 Form from anyone we are working with that is not an employee. If you haven’t requested the W9 Form yet, there is still time.
Who should receive a 1099? Each person to whom you have paid $600.00 during the year in:
- Services performed by someone who is not your employee
- Prizes and awards
- Other income payments
- Medical and health care payments
- Payments to an attorney
- Crop insurance proceeds
- Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish
- Generally, the cash paid from a notional principal contract to an individual, partnership or estate
- Any fishing boat proceeds
This also means that you could receive a 1099 from anyone of these people if you provided the service.
Deadlines for filing are:
1099 MISC Form – January 31, 2019 for Nonemployee Compensation
1099 MISC Form – February 28,2019 for All Others
1096 Form – February 28, 2019