Can I File a W2 Form for Payments Made to a Nonresident Alien Employee?

The short answer is, sometimes. File a W2 form for payments that you made to a nonresident alien employee if there is no tax treaty that applies to the employee. Employers should use the Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, if a tax treaty is applicable. Complete and file both tax […]

Can I File a 1099 Form for Payments Made to a Freelance Translator?

Yes, you can file a 1099 form for payments that you make to your freelance translators. Issue a Form 1099-NEC to freelance workers that you pay $600 or more in a tax year for their services. Make sure when you hire a translator that you determine first whether they are an independent contractor or an […]

How Do I Report Income from a Consulting Service on a 1099 Form?

Use a Form 1099-NEC to report the income that you paid for a consulting service. Businesses must send a form to consultants that they paid $600 or more in the last tax year. Understand the types of workers or businesses that you should classify as offering consulting services. You may hire a consultant to offer […]

Can Payroll Software Handle Different Types of Employee Benefits and Deductions?

Yes, payroll software can handle different types of employee benefits and deductions. Look for a software system that gives you options for all of your different types of workers. Payroll software should also be a strong investment when you want to improve the payroll management process. Reduce the stress of doing payroll math with your […]

Does Payroll Software have Built-In Tax Rate Updates to Ensure Accuracy?

Sometimes, so make sure that you look for payroll software with specific features that you want. The best payroll software offers built-in tax rate updates to ensure accuracy and efficiency when you complete your payroll management tasks. Use up-to-date software to help protect you and your business from incurring high penalties from the Internal Revenue […]

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 […]