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 not require receipts. An employee must receive a 1099 form if your company’s total reimbursements for the year exceed $600.

Use Schedule C (Form 1040) to itemize specific business deductions. Reimbursed expenses may range from travel to equipment to continued education to specified services. Review which expenses qualify under the categories, including tuition and mileage, and which do not require you to send 1099s to your employees.

Import data from a variety of sources and calculate selected fields before electronically filing or printing any of your 1099s. Download our free demo software today for a full walk-through of the system.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.