With the Jan.10, 2015 deadline for your IRS 1099 forms approaching, make sure your Region is finalizing the list of companies or individuals you’ve paid that require a 1099 at the end of the year. Companies or individuals requiring a 1099 are considered independent contractors who are paid more than $600 during the calendar year.
Once you’ve compiled the list, complete the Template for Region Data sheet and email it, along with a completed W-9 for each new vendor, to Michelle Yapelli and the National Office will issue the 1099s. You do not need to send a W-9 for vendors submitted in previous years. Please send information for independent contractors even if your Region paid them less than $600.
As a refresher, companies or individuals are independent contractors if they:
• Perform services for multiple customers.
• Sets own hours.
• Determines own price for contracted services.
• Not eligible for employee benefits.
• Provides own tools and equipment to complete job.
• Supplies own materials needed to do job.
• Personally liable for errors and/or accidents.
• Files self-employment taxes and receives a Form 1099-MISC.
• Has the right to hire and fire workers.
• Must legally complete each contract.
Examples of some Independent Contractors often hired by Regions are:
• Web site development.
• Third-party registration system development and maintenance.
• Bookkeeping services.
• Security guards.
• Legal fees.
• Payments to trainers.
• Data entry clerks.
• Groundskeepers/field maintenance.
For more information on 1099s, visit the Resources Section under the 1099 compliance program or visit the IRS.