How to File Form 1099-MISC for Contracted Workers?
At the end of the tax year, you as a business owner are faced with a multitude of responsibilities, not the least of which is getting all of your tax forms out to your employees and contracted workers. One of the forms that you may be responsible for creating is a federal 1099 form. This form is used to report any amount that you pay to freelance or contracted workers that provide services for your company and are outside of your employee payroll. Creating and completing a federal 1099 form is, luckily, fairly uncomplicated. Following is the basic procedural outline to get you started.
Step 1: Assemble Required Information You must file a form 1099-MISC for every person to whom you paid over $600 during the tax year. In order to complete this form, you must have the following information:
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Payer's name and address Payer's federal identification number Recipient's identification number Recipient's name and address All income paid Any tax withholdings Any medical or healthcare payments State tax information
This is the information required for the most common filing situations. Once you have all of these things assembled for your payee list, you are ready to proceed with how to file form 1099.