1099-NEC For Work Done
Subcontractors on a job site, an electrician who bids a single job, a cleaner who invoices you: payments to non-employees for their work generally go on Form 1099-NEC, sent to the recipient and the IRS by January 31.
Every Contractor You Paid, Reported Correctly
Subcontractors, independent stylists and landlords get the right form on time, and the IRS sees the same numbers your books show. It all starts with a W-9 before the first payment.
1099 Preparation Services For Homestead, FL Businesses
If you pay people who aren't on payroll, January brings a second stack of forms. A plumber who subcontracts part of a big job, a contractor with subcontractors on every site and a salon with independent stylists all end the year owing the IRS a list. When that list lives in a checkbook register, someone gets missed.
Our 1099 preparation services pull every non-employee payment from your books, match each one to a W-9 and prepare the forms. 1099-NEC filing covers payments for services from people who aren't your employees. 1099-MISC filing covers other payments, such as rent for a shop or yard. It's part of our payroll services in Homestead, FL and runs alongside year-end W-2 preparation, so employees and contractors are each reported once, on the right form.
Behind on a year or two of 1099s? Alex can prepare the missing forms and file them in order, and the sooner they go in, the smaller the problem. If you receive 1099s yourself, they flow into your own Schedule C tax return.
Which Form Each Payment Belongs On
The right form depends on who you paid and what the payment was for.
1099-MISC For Rent And Other Payments
Rent paid for a shop, a yard or storage space, along with certain other payments that aren't for services, goes on Form 1099-MISC. Recipients get their copy by January 31, and the IRS copy is filed later.
Booth Renters And Commission Stylists
In a barbershop or salon, a booth renter usually runs their own business and files a Schedule C, while commission or hourly stylists and barbers are usually employees on payroll. Classification depends on the facts of control and pay.
The W-9 That Makes January Easy
A W-9 gives you the payee's legal name, address, taxpayer ID and tax classification. Collecting it before the first payment is far easier than chasing a former subcontractor in January.
How Your 1099 Forms Get From Checkbook To IRS
The work starts in the fall, so the forms go out on time.
W-9 Forms Collected Up Front
New subcontractors and vendors send a W-9 before their first payment. Any missing from earlier in the year are requested in the fall, while the payee is still easy to reach.
Payments Pulled From The Books
Every payment to a non-employee is pulled from QuickBooks Online or QuickBooks Desktop and totaled by payee, so cash, checks and bank transfers are all counted.
Forms Prepared And Matched
Each form is prepared from those totals and checked against the W-9, since a name and taxpayer ID that don't match IRS records cause trouble later.
Delivered And Filed
Recipients get their copies by January 31. The 1099-NEC reaches the IRS by the same date, and the 1099-MISC follows on its later IRS deadline.
1099 Questions From Owners Who Pay Contractors
What if a subcontractor never gave me a W-9?
Request it right away, in writing, and keep a copy of the request. The 1099 is prepared as soon as the W-9 comes back. From then on, no new subcontractor gets paid until a W-9 is on file, which keeps January from turning into a search.
Is a 1099 the same as putting someone on payroll?
No. A 1099 reports payments to someone who runs their own business. An employee is paid through payroll, with taxes withheld, and gets a W-2. Which one a worker is depends on the facts of control and pay, not on which form is easier, so it's worth asking before the year ends.
Can 1099s from past years still be filed?
Yes. Late forms can be prepared for prior years from your bank records and books, and the sooner they're filed, the better. The missing years go in order, and W-9 collection is set up so the current year goes out on time.
I received a 1099 myself. Can you help with that too?
Yes. Income reported on a 1099-NEC usually lands on Schedule C of your personal return, along with the expenses that go with it. Every 1099 you received is matched to your own records, so the income the IRS was told about and the income on your return agree.
Send Over Your Contractor List Before January
Bring a list of the people you paid outside payroll this year, with any W-9s you have. You'll know exactly which forms are needed and when they go out.