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Your 1099 Questions, Answered

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Your 1099 Questions, Answered

January is rushing by and our team are being bombarded with 1099 questions as well as concerns about W2s and Tax Deadlines. We want to get some of those answered for you!

The deadlines come up fast and can be very confusing. I’ve put together some important resources for you and answered a few of the most commonly asked questions. Here at Bliss Your Bookkeeping we aim to get you through all of the tax deadlines with ease!

These days 1099 forms must be either retrieved from your local IRS office, purchased, or submitted electronically. So while you can see the form here, it is not very useful except to understand what kind of information you’re looking for. There are actually penalties for printing the forms and submitting them because they cannot be scanned.

Complete your 1099’s filing bundling them with a 1096 cover sheet for processing. When you buy the forms, they come in packs with the 1096s. If you need helping with 1099s, please let me know!

 

Still got questions?

Who do I need to send a 1099 to?

The most common form that small businesses typically send out is the 1099-MISC. As a general rule, a 1099-MISC Form must be issued to anyone you’ve paid at least $600 to in professional services, rents, awards, or other income-related payments. However, unlike W-2s, 1099s are issued to contract workers, not full-time salaried employees.

 

What are the penalties for not issuing 1099 Forms?

As of 2016, small businesses that fail to issue 1099 Forms can result in penalties that range from $50 to $100 per form ($500,000 maximum per year), depending on how long past due the form is issued and how quickly the failure is corrected. If the issuing requirements are intentionally disregarded, the minimum penalty is $250 per form, with no maximum. It’s much better to be on top of this so you don’t face any problems or fines.

 

When do I need to issue 1099 Forms by?

Businesses need to send 1099s to all independent contractors by January 31.

If this deadline scares you use the contact form at the bottom of the page and reach out to our team today! We will help you get what you need done and sent to the right place.

 

Where can I get 1099 Forms?

You are required to use certified 1099 Forms that can be read by the IRS scanner. To obtain these forms, you can order them online from the IRS. You can also order them from certain office supply stores that provide authorized 1099s, or financial software can be used to create, send, and file 1099s. Be sure that you’re not downloading 1099-MISC Forms or sample forms from the IRS, as they are not permitted for use.

 

Why do I need to issue 1099s?

In order to avoid penalties and adhere to compliance laws, all small businesses need to properly issue and file 1099s. Be timely and be accurate. No one’s exempt from having to pay taxes, so it’s good practice to stay informed and follow federal requirements.

We know it’s already mid-January and we don’t want you to scramble to meet deadlines, as that’s when mistakes happen and mistakes can be costly.

Get in touch with our team of experts to help you make this process as painless as possible and we will work with you to set your business up for success by making sure you are organised ahead of time for the next tax deadline.

We can assist you in verifying that all employee and independent contractor information is accurate and that your financials are up-to-date.Bookkeepers can be a great resource around the 1099 process and our team are committed to making it a blissful experience for you.

 

Need some help? Submit your information and receive a FREE Financial Bliss Session with one of our experienced bookkeepers.

 

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