How to Handle 1099s for Your Contractors: A Quick Year-End Guide

Hey business owners! If you’re working with independent contractors, you know that 1099 forms are a must when tax season rolls around. Here’s a simple guide to help you get everything in order before year-end so you can file smoothly.

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1. Gather Contractor Information Early
Make sure you have a completed Form W-9 from each contractor. This form gives you their tax ID number and legal name, which you’ll need to issue the 1099.

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2. Track Payments Throughout the Year
Keep a record of how much you’ve paid each contractor over the course of the year. If you’ve paid someone $600 or more, you’ll need to send them a 1099-NEC.

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3. Know the Deadlines
Remember that 1099 forms need to be sent to your contractors by January 31st. It’s a good idea to get everything ready a little early so you’re not scrambling in late January.

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4. Use an E-Filing Service for Convenience
Consider using an online service to file your 1099s. This can save you time and ensure that everything is submitted correctly to the IRS.

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5. Keep Copies for Your Records
Always keep copies of the 1099s you issue and any supporting documents. It’s good practice to have these on hand in case there are any questions down the road.

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By following these simple steps, you’ll be all set for tax time and keep things smooth for both you and your contractors.

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​Not sure where to start? Schedule a consultation and let’s make sure your 1099s are handled correctly before the deadline.