do you need to send a 1099?
The Details
So you chose to pay your vendors via cash, check or Venmo, but did you know that now means you have to issue them a 1099 or you get fined? Well, now you do!
If you paid a vendor more than $600 for services during the year via anything outside of a payment processor, then you must provide them with a 1099 before Jan 31st.
Not doing so could get you fined by the IRS for $280 per form.
Pricing
1-10 forms $10 each
11-20 Forms $8 each
20+ Forms $5 each
TELL ME WHAT I NEED TO DO!
Collect your W-9’s from vendors
Complete this Pro Forma
Once you have your documents, upload
1099 pro tips
1099-NEC is used to report Non Employee Compensation.
Anyone paid by credit card or via a provider like Stripe, PayPal or Square, will get a 1099-K from the payment processor.
1099-NEC should only be issued for services, not physical product purchases
The 1099 is issued to the vendor and a copy sent to the IRS
Rents, royalties, prizes and rewards of more than $10, should be reported on 1099-MISC.