Can I File a 1099 Form for Payments Made to an Advertising Agency?
The short answer is, it depends. File a 1099 form if an advertising agency creates an ad or runs an ad for your business, and you paid them $600 or more in the previous tax year. The Internal Revenue Service considers many advertising agencies as independent contractors. A business must send 1099 forms to the […]
File a 1099 Form for Payments Made to a Limited Liability Partnership (LLP)?
Yes, and you should file a 1099 form for payments that you make to limited liability partnerships. Send LLPs a Form 1099-NEC if they provided your business with services that met or exceeded $600 in the previous tax year. Send a 1099 form to the Internal Revenue Service also. Request Form W-9 from limited liability […]
Can Payroll Software Handle Contractor Payments and Issue 1099 Forms?
The simple answer is, sort of. Payroll software handles contractor payments for many types of businesses. A business owner should look for a complete database system that allows them to generate and issue 1099 forms. The first step is to look for the most comprehensive payroll software that meets your business’s payment requirements. Do you […]
Can I File a 1099 Form for Payments Made to a Software Developer?
Yes, you can file a 1099 form for payments that you make to a software developer. File the Form 1099-NEC if you paid any freelance software developer $600 or more in the previous tax year. Keep a copy for your business’s records. Provide a copy to the independent contractor by Jan. 31 and a copy […]
Can I File a 1099 Form for Payments Made to a Limited Partnership?
Yes, but there are rules for when businesses must file a 1099 form for payments they make to a limited partnership. Do not send 1099 forms to businesses that the Internal Revenue Service classifies and taxes as a corporation. General and limited partnerships do require that you send them a 1099 form. File a 1099 […]
Can Payroll Software Handle Tip Calculations for Tipped Employees?
Yes, restaurants and similar businesses should look for payroll software that can handle their tip calculations for tipped employees. Keep records of all reported tips to avoid audit consequences from the Internal Revenue Service. Good record-keeping also ensures greater accuracy and the ability to find paperwork as you need it for any employee. The most […]
Does Payroll Software Support Multiple Pay Rates for Different Roles?
Sometimes, which means you should confirm first that a payroll software supports multiple pay rates for your business’s different roles or departments. Do you employ hourly employees who perform multiple jobs on different pay scales? Ask potential software vendors whether a system is compatible with what you need to accurately manage the payroll. These pay […]
Can Payroll Software Handle Garnishments and Wage Attachments?
Yes, the best and most comprehensive payroll software can properly handle garnishments and wage attachments. Some payroll software provides built-in features for payroll garnishment. You can usually automate your garnishments and wage attachments once you properly set up the system. Look for a payroll vendor that offers its users a variety of functions to meet […]
Can Payroll Software Handle Different State and Local Tax Requirements?
Yes, but do not take geo-location software tools for granted. All software providers offer different tools and features for their products. One payroll software does not necessarily handle the same state and local tax requirements as another option. Ask upfront questions to a payroll provider to ensure that any potential software provides coverage in the […]
How Secure is Payroll Software at Protecting Sensitive Employee Data?
Payroll software offers users the security that they look for when investing in it. Payroll vendors have differing priorities for how their product protects your sensitive employee data. Look for a vendor that provides transparency in how they protect employee data. Take some steps on your end to ensure that you do all that you […]