If you’re like a lot of people asking the question “What is a 1099-MISC form?”, then you’re probably receiving or submitting forms that document income earned as an independent contractor. In today’s modern economy and work-from-home culture, it’s becoming increasingly common for workers to market their labor services as self-employed contractors rather than employees. With a little success, a professional may soon find him or herself looking for subcontractors who can help manage the load of a seemingly ever-growing contract. People who never saw themselves as a business employer suddenly find themselves applying for an employer identification number (EIN) and issuing their own payer-based 1099-MISC forms.
An Introduction to the 1099-MISC Form
In fact, independent contractors are only one type of business relationship that can trigger this type of 1099 filing. More generally, a 1099-MISC form is a particular kind of “Certain Information Return” that is used to account for “miscellaneous” income that doesn’t already fall under some other 1099 form designation. Rental income is another common reason for issuing this 1099 form. You may, for example, need to issue a 1099-MISC form as a property management company who collected rent from residents and disbursed some portion of this rent to the property owners. If you run a game show or carnival prize or sweepstakes awards—which doesn’t involve a wager and thus doesn’t fall under gambling winnings (W-2G)—you’ll likely need to issue this form.
It doesn’t stop there, either. Certain medical and legal service payments. Fishing and fishing boat proceeds. Crop insurance. Notional principal contract payments. The list goes on and on. You can find the IRS’s complete instructions for 1099-MISC form here https://www.irs.gov/pub/irs-pdf/i1099msc.pdf.
What is 1099-MISC Form Software?
Advanced Micro Solutions (AMS) offers better software support for all your 1099 filing forms. Our W-2/1099 Forms Filer is just the platform solution you need to manage your filing forms quickly and reliably. For just, you can get the following data management resources for your business.
Data Entry and Printing
- Entry screen resembles the actual forms, or the Browse command offers data entry using a spreadsheet format.
- A Common Payee File allows the user to avoid a lot of duplicate data entry.
- Data can be imported from a huge range of source files.
- “Define” default values for things like State Code and ID.
- Automatic save and backup restore.
Data Reporting and System Networking
- Supports up to 99,999 employees/recipients per payer.
- Supports up to 1,999 payers/employers.
- Print tables, worksheets, client letters, recipient lists, and mailing labels.
- Report generates hash totals for checking SSNs and TINs.
- Encrypted PDF files to securely email reports.
- Batch printing for multiple payer reports to save time and effort.
- Print prepared information on pre-printed forms with easy form alignment.
- Network/multiple PC Installation.
- Creates an SSN verification file.
- Optionally Save Reports to PDF files.
Better yet, you can add more features and products to a software package that’s customized for your business. E-file directly with the IRS. Find a third-party vendor to handle smaller e-filing needs and mailing services. Print your own blank tax forms. Use an integrated payroll software solution. You can discover which software makes the most sense for your business by downloading our free demo. Or talk to our Sales and Information team at (800) 536-1099.