If you’re a new employer, you may not know how to fill out 1099 misc. Those just starting a business may be relying on 1099 work rather than w-2 employees. As a result, it is essential to know how to fill out 1099 misc early in your small business’s life. This is one of the first tax and wage-related forms you’ll need to deal with. We’ll walk you through the process of completing it.
If you’re new to business, or just new to 1099 filing, you’re likely in need of a software solution. Don’t rely on filling out 1099 forms by hand. The best way to quickly, efficiently, and accurately file tax and wage forms is to invest in a semi-automated software solution, like those offered from Advanced Micro Solutions. Our W-2/1099 filer is perfectly suited to small businesses just beginning to hire out work. Plus, this tool is the base software for our other, modular platforms, setting you up for streamlined accounting early in your business’s life. If you’re not sure how to fill out 1099 misc, let our software guide the way.
How to Know Your 1099 Misc Liability
Not everyone who contracts out work will need to complete a 1099. The first step in understanding how to fill out 1099 misc is to ensure you actually have to complete the form. Employers must file form 1099-misc for every person paid at least $600 in services (who is not an employee), prizes and awards, medical and health care payments, and a variety of other types of payment. Additionally, you should use a 1099 misc form to report direct sales made of at least $5,000 to a buyer for resale anywhere other than a permanent retail establishment. See the IRS’s guidelines for a complete list.
1099 Misc Instructions
If you don’t know how to fill out a 1099 misc, the IRS provides instructions for each box directly under the form. However, we know that this can be tough to read and understand, so we’ve paraphrased some of the more important instructions in the bulleted list below.
- Fill out personal information, including your tax identification number and the recipient’s tax identification number. You’ll also need the recipient’s personal information. It helps to collect a W-9 from all contractors prior to filling out a 1099 so that you have this information at the ready.
- The boxes on a 1099 misc indicate the types of payments that can be reported on the form. Find the box that best reflects the transaction you are reporting and fill in the amount. For more specific instructions about what qualifies as which type of payment, see the form’s official instructions.
- If you have withheld any state or local income tax, indicate these withholdings in boxes 15, 16, and 17.
AMS Can Help You Complete 1099 Misc
All tax and wage forms come with their share of headaches. That said, 1099 forms seem to be among the most confusing for new employers. Between understanding how many forms you need to print, figuring out your personal liability, and understanding what qualifies as non-employment income, the process is unnecessarily complicated. However, with support and tools from Advanced Micro Solutions, you can more quickly, easily, and accurately file the 1099s you need. If you have any questions about our software, call our Sales and Information team at 800-536-1099.