You add up all payments made to a payee during the year, and if the amount is $600 or more for the year, you must issue a 1099 for that payee. You are required to complete a 1099-MISC reporting form for an independent worker or unincorporated business if you paid that independent worker or business $600 or more. You also use the 1099-MISC for reporting payments made to unincorporated business service providers, attorneys and partnerships. ![]() The key is that the independent worker is self employed - and not your employee. Examples of independent workers might include a graphics designer, Web developer, cleaning service, freelance writer, landscaping or grass cutting service, forum moderator or other self-employed provider. Independent workers are typically self-employed individuals or small service firms that you hire as independent contractors. ![]() The 1099-MISC should be used for reporting payments to independent workers - not payments to employees. For employees, you use form W-2 instead to report employment income you paid them. What type of income do I report on a 1099 form?
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