Strive Tax & Accounting, LLC | 1099 Reporting | Green Bay CPA

Continually striving for accuracy, excellence and the highest level of integrity.

Strive Tax & Accounting, LLC

PO Box 28353

Green Bay, WI 54324

aicpa.png
American Institute of Certified Public Accountants
  • White Facebook Icon
  • White LinkedIn Icon
  • White Instagram Icon
Quickbooks ProAdvisor

tax planning

Accounting

IRS

cpa firm

IRS

payroll

small business

bookkeeping

bookkeeping

sales tax

tax planning

small business accounting

Green Bay

Forensic Accounting

Accounting

tax preparation

quickbooks

payroll

cpa firm

irs notice

small business accounting

small business

bookkeeping

irs notice

bookkeeping

corporate tax

quickbooks setup

quickbooks

payroll tax

IRS

payroll tax

Forensic Accounting

quickbooks training

tax preparation

IRS

Website Designed by Strive Tax & Accounting, LLC

CPA's specializing in small business tax and accounting with emphasis in construction and manufacturing for corporation and passthrough entities.

tax planning

bookkeeping

Accounting

IRS

small business accounting

tax preparation

Forensic Accounting

IRS

quickbooks

payroll

cpa firm

small business

payroll tax

IRS

bookkeeping

irs notice

quickbooks setup

quickbooks training

sales tax

corporate tax

Green Bay

bookkeeping

Accounting

small business

Forensic Accounting

IRS

tax preparation

cpa firm

tax planning

small business accounting

payroll tax

irs notice

bookkeeping

quickbooks

payroll

W-9 Forms & 1099 Reporting

    

     

1099 Reporting
   
 
 

Who Must File 1099's?   

    

Persons engaged in a trade or business must file Form 1099-MISC when certain payments are made. A person is considered to be engaged in business if he or she operates for profit; thus, personal payments aren’t reportable.

Payments to Report

    

A Form 1099-MISC must be filed for each person to whom payment is made of:

  • $600 or more for services performed for a trade or business by people not treated as employees;

  • Backup withholding (all amounts);

  • Rent or prizes and awards that are not for service ($600 or more) and royalties ($10 or more);

  • All payments to crew members by owners or operators of fishing boats;

  • Payments of $600 or more to a supplier of health and medical services; and

  • Crop insurance proceeds

     

Payments made to corporations, except those made for medical or health care services and attorney fees, are not required to be reported on Form 1099-MISC

   

Non-Employee Payments

    

Non-employee payments are reported in Box 7 of Form Form 1099-MISC. Non-employee payments include fees, commissions, prizes and awards, and other forms of compensation provided for services performed for a trade or business by an individual who is not an employee.

     

If the following four conditions are met, a payment generally is reportable as non-employee compensation:

  • The taxpayer made the payment to someone who is not an employee;

  • The payment was made for services in the course of a trade or business;

  • The payment was made to someone other than a corporation; and

  • Payments of at least $600 were made to the payee during the year

     

Payments for Services

    

When a business pays an independent contractor for services performed in the course of that business, the service recipient must file Form 1099-MISC if the payment is $600 or more for the year, unless the provider is a Corporation.

     

Direct Sales

    

The law requires information reporting on Form 1099-MISC for certain direct sellers. This requirement applies to persons who, in the course of a business, sell consumer products on a buy/sell basis, deposit/commission basis, or any similar basis to any buyer who (1) sells such product in a home or other than in a store or (2) sells these products to another seller. Sales of $5,000 or more are reportable.

     

Deceased Employee Wages

    

If an employee dies during the year, the employer must report the accrued wages, annual leave pay, and other compensation paid to an estate or beneficiary after death on Form 1099-MISC; this applies whether the payment is made in the year of death or after the year of death.

     

Rents

    

(except rent paid to real estate agents & brokers)

The law requires information reporting for rent payments made for real or other property rental.

     

Real Estate Agents & Brokers

    

Real estate agents must report on Form 1099-MISC rents collected for property owners before deduction of commissions, fees, or other expenses if the amount paid to any one property owner totals $600 or more during the calendar year.

     

 Do not report payments made by a credit card, PayPal, gift card or other payment constituting an electronic payment
   
 
 
W-9 Forms
    
 

Form W-9 Requirements:     

    

In accordance with federal Internal Revenue Service regulations, small business owners are required to obtain Form W-9 “Request for Taxpayer Identification Number and Certification” from any vendor to whom it makes payments that (may) require the issuance of a Form 1099.

  

Because you cannot accept the person's information informally, Form W-9 is used to request a vendor's information. On Form W-9, the vendor identifies the type of organization and provides the legal name and matching taxpayer identification number. Vendors that refuse to provide this information are subject to backup withholding, and your business can be penalized for not withholding the required amount.

  

If your business is audited,

you will need to be able to provide a W-9 form for everyone who did work for you.

   

Unless your CPA has been specifically engaged to provide this service, it is the responsibility of the business owner to collect, and retain, this information.

  

Employee or Subcontractor?