1099 Help

1099 Defined

A 1099 is issued to non employees when compensation to said worker exceeds $600 per year. You must file a 1099 with the IRS or you might be imposed a penalty of $50 per return not filed.

Further more, the IRS may impose additional penalties such as backup withholdings.

Also, if you employ individuals as contract labor and during an audit it is discovered that these individuals are employees you might be faced with penalties under Internal Revenue Code section 3509.

At year end make sure to file your 1099s with the transmittal called a 1096.

If you require help. Call me.