The 1099 Misc Form is required when you deal with contractors in your business and you pay them more than $600 during a tax year. if your business employees contractors and you pay them this much then you will be required to fill the 1099 Misc Form. It might seem complicated to fill this form but don’t worry. If you have the right tool and procedure then its a straightforward task. In this article, We will explain to you how to prepare the IRS form 1099 Misc and what is the best way to file 1099-Misc Online. So let us have a look at 1099 Misc form in detail before leading to the filling steps.
if you Have been using the Quickbooks Desktop Payroll service then you must be familiar with the three variants of the Quickbooks Desktop Payroll service that includes Basic, Enhanced, and full service. Payroll is a subscription-based service of Quickbooks Desktop that avail Users to process payroll and file taxes properly.
Introduction to 1099 Misc Form
the 1099 Misc form is compulsory for you if you are working as self-employed or as a freelancer. It is also mandatory for the companies that are hiring you as it maintains a complete record of the amount these companies pay to their employees during a tax year.
this is likely similar to the w-2 form which is mandatory for all the employees of the company while the 1099 Misc online is mandatory for people who are working as non-employees. this form is required to maintain the record of various sources of income of the taxpayer.
So the 1099 Misc Online form is used by business owners to show the payment or bill they have made to freelance, Contractors, employees, etc. If you are an employee then you don’t need to worry about the 1099 Misc Online. you need to just fill the W-2 Forms.
Reasons to File 1099-Misc Online
there are several specific cases in which you are required to file the 1099 Misc form online according to the Internal Revenue Service. Cases like, If you are working for a company as an Independent Contractor or Despite being a content employee for a company you are operating specific tasks in a company are the example when you are required to file the 1099 misc Online form.
this simply means that you have the whole control on all the processes that are going On. the Organization or the company will only look for the results at the end. hence, this form is required for occupations like Drivers, landscapers, Graphic Designers, Social media Consultants, etc.
Requirements To File A 1099 Misc Form Online
here are the steps that you will be required to follow in order to properly fill out this form.
- In order to fill this form, You will be required to provide the following information.
- Provide the Personal Details of the recipients that include name, Address, Telephone Number, Etc.
- You will be required to fill the Social Security Number or Business Tin’s Number if you are a sole Proprietorship.
- Identification Number of the recipient.
- Account Details of the recipient.
- In case you have provided the wrong tax Identification number for three years then you can mark the “2nd Tin Not” box to ensure IRS that you are now providing accurate information and they won’t need to send you another notification.
So these were some of the things that you have provided in the 1099 Misc Online form. Now let us move to the steps that you have to follow in order to fill out the form.
What Are the Steps to File 1099 Form
Here are the guidelines that you have to follow while filling out the 1099 Misc Online form.
there are several things that you have to keep in mind or you have to proceed in order to fill this form. you will be required to collect all the required information and if you filling a physical copy then you will be reqruied to submit 1096 forms and send a copy of the form to the IRS and to the contractor. here is the list of the things that you must have for each contractor. You can find these things on the w-9 form filled by individual Contractors.
- Sum of all the amount that you have paid to the contractors during the tax year.
- personal Detail of the Contractors
- the Taxpayer Identification Number or Social Security Number if they are the sole Proprietor or If they are resident or Non-resident Alien then submit the designated identification number.
- Submit all the information that you have collected in step 1 in the 1099 Misc Online form.
- Make sure to send the copy before January 31 to the contractors so that they can also fill their taxes before the deadline.
- if you are using the Mail Service to file the 1099 form then make sure to submit the A copy to the IRS before February 28.
- If you are submitting a physical copy of the form then you have to submit the 1o96 form. it will keep a record of all 1099 that you are filling during the tax year.
- Also, check if you need to file the 1099 form with the state tax commission.
Various Methods to File 1099 Misc Form
You can use the paper filling method to file the 1099 form. you will be required to send the Copy A of 1099-K and 1099-Misc to the IRS. make sure to use the official form at the IRS website so that they can scan the form properly.
if you want to fill the form electronically then you will be required to use specific software. you will be needed to apply to the IRS to file the 1099 form electronically. list of methods that are preferred by the IRS:
- Federal and State Filling for 34 countries
- 1099s Bulk Submission
- 10976 form not required
- Form Received and processed Confirmation
So this was the best possible way through which you can file the 1099 Misc Form Online. if you have any queries related to the article or regarding the Quickbooks software then you can contact Professionals at Quickbooks. they will provide you an efficient solution to resolve this issue.