How To Prepare A 1099 Form For A Contract Worker
The internal revenue service (IRS) requires people who have hired contractors and paid them more than $600 for a year to prepare a 1099 form. This figure should include money for materials and business-related payments. One can be able to get this form by going online and ordering a page from the IRS. The 1099 form can be purchased from an office supplies store.
The purchased forms must be compatible with the IRS scanners. Once you get the 1099 forms from the recommended places they should be scannable. The 1099 forms come in a batch and they can be used for awhile. The information that is required in the 1099 forms include a federal tax ID which is usually an employer’s identification number or a personal social security number. People who do not have the federal tax ID need to find out how to get it in order to complete the 1099 forms because submission cannot be carried out without the number.
When filling a 1099 form, one has to put in the social security number of a contract worker. For contract workers who do not have social security numbers, the person who is making payment should withhold 28% of the contractor’s fee to give to the IRS. By checking the w-9 form of a contract worker, one can be able to check their social security number.
The person who is filing in the 1099 form must include the total amount of money that has been paid to a contract worker throughout the year. Contact information is required in a 1099 form for the independent contractor as well as the company. One should have a total of three 1099 forms that they have filled. When filling the 1099 forms one should have two copies that they will need to submit. For proper record keeping, one should keep the third copy in a safe place. It is important to fill the 1099 form with one’s state. As you can see, the 1099 form is not difficult to fill when you have the required information. One of the ways of submitting 1099 forms is by mailing it to the IRS.
A contract worker can submit the 1099 form themselves when you give it to them. Failure to fill in 1099 forms may result in penalties and one should avoid this. Penalties are also awarded to people who fail to submit the 1099 forms in good time. For additional resources on how to fill a 1099 form one can always visit the IRS pages and they will find information on the 1099 forms. For people who have additional questions they can call the IRS call center for help.