New 1099 forms for your paid contractors
With 2020 has come countless changes, some good, some dreadful and many in between.
One of those changes involves the 1099-MISC form that you have either received from a paying customer or have had issued to contractor who have worked for you.
Beginning 2020, and to be filed by January 31, 2021, contractor payments that were previously were marked in box 7 of the 1099-MISC form will now be issued on box 1 of the 1099-NEC (non-employee compensation) form.
So who will receive these forms? Any company/sole proprietor who has been paid at least $600 throughout the year and is not incorporated (S Corp and C Corp's excluded).To ensure you're issuing these 1099 forms to everyone who is required to receive one always request W-9 forms from your contractors. These W-9 forms should be updated every few years especially when your contractor's information has changed or the IRS has revised the form.
**To avoid noncompliance penalties be sure to use the official IRS forms and do not print these from the internet.
Contact us for assistance and guidance on these tax forms.