Can I File a 1099 Form for Payments Made to a Freelancer?

Yes, employers must file a 1099 form in many instances for payments you make to a freelancer. Use Form 1099-NEC when you pay your freelancer $600 or more in a calendar year. Familiarize yourself with all of the other 1099 forms that you may need to file for specific types of freelancer payments. These include: […]

Can I File a 1099 Form for Payments Made to a Nonprofit Organization?

Employers should not file a 1099 form for payments sent to a tax-exempt nonprofit organization. Check to confirm that any business you sent a payment to qualifies under one of the types of exempt organizations. There are situations when you may still need to send out a 1099 form. A nonprofit that does business with […]

Can I File a 1099 Form for Payments Made to a Foreign Corporation?

The short answer is, sometimes. You may find yourself required to file a 1099 form for specific payments that you made to a foreign corporation. Companies in other countries that generate sales in the United States must pay U.S. taxes on those specific profits. The Internal Revenue Service ensures that it receives its owed taxes […]

Do I Need to Provide a 1099 Form for Payments Made with a Credit Card?

The short answer is, no, you do not. Employers do not prepare 1099-NEC or 1099-MISC forms for any of their credit card business-related payments. The rule extends to some other forms of payment that are similar to credit cards. They include: debit cards, mobile wallets (e.g. PayPal), and store-valued cards (e.g. gift cards). Prepare a […]

Do I Need to Send a 1099 Form for Reimbursements to Employees?

Yes, there are certain instances when employers must send a 1099 form for reimbursements to their employees. Businesses, in general, must issue a 1099 for the non-incorporated contractors that they paid $600 or more in the previous calendar year. Issue a 1099 if you reimbursed your employees for any expenses and your company’s policy does […]

Are There Any Exceptions or Exemptions to Filing 1099 forms?

Yes, the Internal Revenue Service provides certain exemptions for filing 1099 forms for freelance workers. Familiarize yourself with the exceptions before you hire a contractor. Do not submit 1099 forms if you:   Make payments to corporations. Do not send Form 1099-MISC or any other 1099 forms when you make a payment to a corporation. […]

When to Issue a Corrected 1099

Issue a corrected 1099 form as soon as you notice that you made an error on one. The Internal Revenue Service generally prefers to receive amended 1099s within three years of your original filing date. Yet the IRS does not impose a hard deadline for filing amended 1099s. Only issue a corrected 1099 to the […]

When Do You Have to File 1099s Electronically?

Electronic filing deadlines for 1099s depend on the specific type of 1099 form. Your window for e-filing may extend through March 31. File Form 1099-NEC to the Internal Revenue Service by January 31 for paper and electronic submissions. The IRS may otherwise enforce late penalty fees. Send Form 1099-MISC to the IRS by March 31 […]

When are Corrected 1099s Due?

There is no hard deadline for when you must file your business’s corrected 1099s. Aim to submit amended forms to the Internal Revenue Service within three years of your original filing date. A three-year window exists to collect a refund from an amended form. The IRS generally does not reject or block amended 1099s that […]

When are 940s Due?

File Form 940, the Employer’s Annual Federal Unemployment (FUTA) Tax Return, by January 31. You may find your business eligible for the February 10 deadline if you deposited all your FUTA tax when it was due. File your return on the next business day if the tax return due date lands on a Saturday, Sunday, […]